Our Value Creation18

Hitachi, Ltd. | Integrated Report 2016

CREATING VALUEFOR SOCIETY
THROUGH RAILWAYS
Interest is rising in railway infrastructure as a way
to deal with the social issues that accompany global
warming and increasing urbanization. Hitachi is
now expanding its global railway system businessusing the considerable technological expertise it hasdeveloped over many years.

Hitachi’s Newton Aycliffe plant, where the new Class 800 trains arebeing manufactured for the UK’s Intercity Express Programme.

Meeting the Railway Systems Needs of Today’s Society

has an industry-leading track record for safety in operation

There is now great interest in role that railway systems can play inmanagement systems and in rolling stock. Hitachi has placed

dealing with the various social issues caused by global warming andparticular emphasis on environmental considerations, reducing

population growth. As the economies of developing nations rapidly

noise pollution and making increasing use of recycled materials,

grow, their populations concentrate in cities, causing serious

and is a market leader in bimodal and hybrid systems that switch

problems like traffic congestion and air pollution and increasing the

between electric and diesel operation. Hitachi is also developing

need for environmentally friendly railway transport. Meanwhile,

technology for using big data to improve the efficiency andexisting transport infrastructure in developed nations has deteriorated

safety of railway logistics.

and is in urgent need of renovation to meet current requirements.

Hitachi is using these strengths to focus not just on specific

Previously, Hitachi focused mainly on manufacturing rolling

services—like rolling stock systems, signaling, and traffic manage-

stock and electrical products, but in recent years it has expanded

ment—but also a full range of turnkey railway-system solutions

its business to provide a comprehensive range of services forincluding transport systems and Operations and Maintenance (O&M).

running railways, such as operation management systems andIn fiscal 2014, O&M accounted for 1% of railway-related revenue,

maintenance services.

but Hitachi’s aim is to increase O&M and turnkey combined to

The European Rail Industry Association, UNIFE has estimated

24% of the ¥640 billion in revenue targeted for fiscal 2018.

that the global railway-related market will grow from ¥13.2 trillion (2014–16) to ¥14.6 trillion (2017–19). We anticipate significant growth for the railway operations segment of our business.

Revenues for Railway System BusinessIn 2015 Hitachi acquired two Italian companies—AnsaldoBreda,

Billions of yen

a rolling stock manufacturer, and Ansaldo STS, a transportation

800

system technology company—thereby enhancing its signaling
and railway operation businesses, as well as its turnkey solutions,

640.0
600

with an expanded product portfolio.
A Global Company with Comprehensive Offerings

500.0

400

352.6

With the acquisition of the two Italian companies, Hitachi has
become one of only a few players in the global railway industry

200

that offers a full lineup including rolling stock and systems. As
well as various achievements in the global market to date, most
famously demonstrated by the Shinkansen bullet train, Hitachi

0

2015
Result2016
Forecast

2018
Target(FY)

19

Meeting Needs in the Birthplace of Railway

Hitachi’s Pioneering Spirit at Work in the United Kingdom

Much of the United Kingdom’s rail infrastructure dates back to

As part of the IEP, Hitachi received an order for 122 trains andthe nineteenth century. This infrastructure is now deteriorating

866 cars, of which 110 trains will be produced at the Newton

and in urgent need of modernization. Meanwhile, the British

Aycliffe plant. The 43,000 m2 plant has a production capacity of

Department for Transport is currently implementing the Intercity

40 cars a month and, as the company’s European manufacturing

Express Programme (IEP), which will replace aged rolling stock on

operation, plays an important role in the global strategy of Hitachi’s

main lines. Hitachi is using the technology it has built up over the

railway system business. In 2016, it began production of the firstyears to win further IEP orders.

three trains for the Great Western Main Line, ready to enter service

In October 2004, Hitachi was chosen as preferred bidder, andin 2017. Hitachi also plans to manufacture rolling stock for thein the following year received the order for 29 Class 395 trains,

East Coast Main Line and for the Abellio ScotRail (ASR) project atwith a total of 174 carriages, to run on the 109-km high-speed link

the plant.

between London and the Channel Tunnel. The first trains entered

Manufacturing Plant Manager Darren Cumner says that

service in 2009. The successful completion of this project around

Newton Aycliffe was chosen for its transport links, availability ofhalf a year ahead of schedule was a huge boost to Hitachi’s busi-

skilled workers, heritage, local heavy industry, and presence ofness in the United Kingdom. In 2007, Hitachi established theother Japanese companies in the area. The plant has introduced

Ashford Train Maintenance Centre in southeast England.

a state-of-the-art just-in-time (JIT) production system. As well as

In July 2012, Hitachi officially signed a comprehensive contract

fitting the whole production line in a single building, it has beenwith the U.K. Department of Transport, which was moving for-designed to allow rolling stock without production problems toward with the IEP, including maintenance services to be provided

overtake stock that needs extra attention. Thus, even if a problem

for 27.5 years, and began design work. In September 2015,

occurs production can continue to move ahead steadily without

Hitachi opened a train manufacturing and assembly plant inany need to halt the line.

Newton Aycliffe, in northeast England’s Durham County, to pro-

Meanwhile, at the new plant Hitachi places special emphasis on

duce rolling stock for the IEP. The plant is only a few hundred

two things in particular: dedication to the spirit of craftsmanshipmeters from the historic Heighington Station on the Stockton andand the training of staff with solid technical skills.

Darlington Railway, the first publicly operated steam train line in

There has been much interest in the region regarding the local

the world. The revival of railway manufacture in a place with suchrecruitment of staff. The plant received 16,000 job applications

importance to the history of rail has produced great expectations inin 2015, far more than the number of jobs available. To date, thethe United Kingdom.

plant has hired 550 people, selecting them according to the

To date, much of the U.K.’s railway traffic management has

Hitachi founding concepts of harmony, sincerity, and pioneering

been done manually, but in July 2015, as part of a project byspirit and prioritizing values over technical skills. The plant

infrastructure management company Network Rail to introduce

expects to increase its staff to 730 by spring 2017.

automatic systems and improve efficiency, Hitachi won an orderto provide operation management systems for Thameslink, amain London commuter line that suffers particularly serious traffic congestion. Hitachi was highly appraised for its 40-plus yearsof expertise managing routes including commuter lines in theTokyo area and the Shinkansen network.

The Newton Aycliffe plant uses cutting-edge production methods to build its trains.

20

Hitachi, Ltd. | Integrated Report 2016

Back to Basics: Hitachi Training at the Plant
Production Manager Lee Nockels, who is in charge of staff training

Local Staff Who Trained at the Kasado Works

at the plant, joined Hitachi in January 2015 after spending 28
years in the army, rising to the rank of major. He notes that, likehimself, most of the locally recruited employees are not from therailway industry.
“Some people would see that as a negative,” he says. “But I
see it as a positive. We have got very little baggage and very few
bad habits.”
The training for the plant’s production employees is an abbreviated version of that implemented at the Kasado Works training
manufacturing plant in Yamaguchi Prefecture, Japan. The U.K.

Andy Crowe

program takes a minimum of five weeks, both in the classroom

Manufacturing Specialist

and working on a real train, and covers the basic skills of piping,rigging, and wiring.
Many employees have existing technical skills but are strongly
encouraged to go back to the basics. “I always tell people: don’t
forget what you have learned before, but don’t be afraid to learnsomething new,” says Nockels.
As well as running this basic training, the Newton Aycliffe
plant is actively engaged in an exchange of technical skills with
Kasado Works in Japan. As Hitachi strives to transfer skills to its
U.K. operations, many of the plant’s staff have visited Japan for
training, and there are currently 20 staff from Japan working at
the plant. Hitachi’s policy is to expand such opportunities forskills transfer in the future.

Before joining Hitachi in August 2015, Andy Crowe spent 21 years
fitting kitchens into camper vans. He now leads a team of five
employees who install catering units into the trains. Soon after
joining Hitachi, he traveled to Japan for 12 days of training at
the Kasado Works. In addition to learning the procedures, herecorded photos and videos of them along with detailed
descriptions. The aim was to produce detailed standard operatingprocedures (SOPs) to be used by staff back in the United Kingdom.
Crowe says that he was particularly impressed by the accuracy of
the work in Japan. “Door gaps have got to be a certain measurement, and sometimes you are working to a precision of 0.5 millimeter,” he says. “It would be 3 or 4 millimeters for a camper van.”Andy Dick
Section Leader for the ASR Project

Andy Dick joined Hitachi in March 2015 and left for Japan after
just 21 days. Much of the training at the Kasado Works focusedon quality, he says, giving the example of a multicoil wire. The
wire might have 1,000 strands or more; if a scratch were foundon just one of those, the entire multicoil would be rejected. “It
was unbelievable,” he says. Dick spent three months in Japanand observed about 900 different operations. “It was a difficult
job,” he says, “but made easier by the way we were welcomedby the Kasado staff.”
The Newton Aycliffe plant, pictured here, carries out ongoing technology exchange with
Hitachi’s flagship Kasado Works in Japan.

21

New Systems to Ensure Japanese Quality

CSR Activities at the Newton Aycliffe Plant

in the United Kingdom

Senior HR Advisor Jacquie Smith was one of the first people hired

In Japan, employees often build up experience at the sameat the plant, where she has been deeply involved in its CSR activities.

company over many years, learning many different processes andAn early and key CSR project for the plant, she says, wasskills. But U.K. employees are much more likely to change jobs inbecoming a founding member of the South Durham University

search of promotion. It is also relatively rare for technical staff toTechnical College (UTC), together with the University of Sunderland

hone their skills in a single factory, and staff from a variety of

and Gestamp Tallent Ltd. The UTC is located just a short walk fromtechnical backgrounds tend to work together. In order to manu-

the Newton Aycliffe plant. Classes are due to start in September

facture rolling stock in the United Kingdom with the same assur-

2016 for students aged 14 to 19 specializing in manufacturing,ance of quality as in Japan, and to make that process easily

technology, and engineering. While some students may eventu-

comprehensible to U.K. staff, Hitachi is systemizing procedures

ally work for Hitachi, others will be employed by other companies

and the technical skills of experienced employees in Japan andin the business park or fill skill shortages in the wider northeast

recording those skills in use. In this way, Hitachi aims to increase

England region.

product quality even further.

The plant is also working with the Durham Education Business

For the IEP rolling stock alone, some 700 SOPs have beenPartnership to offer career education in schools. A number ofdefined and recorded. At the Kasado Works in Japan, hundreds ofstaff members volunteer as “business ambassadors” visiting

hours of video and thousands of photos have been taken thenschools and explaining the plant’s work.

turned into manuals that are easily understandable by employees

The plant is also working hard to encourage as many job

in the United Kingdom. Staff in the manufacturing area at theapplications from local people as possible. As part of that, it is

Newton Aycliffe plant can consult them whenever they wish

cooperating with a social rented accommodation company calledusing tablets available throughout the plant.

Livin that helps its tenants find good quality employment. The

Manufacturing Engineer Fumio Fujinaga was transferred to the
Newton Aycliffe plant in August 2015. An expert in rolling stock

plant has also helped run workshops on writing CVs and fillingout online applications.

manufacture, he honed his skills at the Kasado Works in Japan.

Smith, who also has responsibility for recruitment, says that

While at Kasado, he was involved in the training of staff from theunfortunately the plant has received relatively few applications

United Kingdom, and since his transfer he has also had responsi-

from women seeking technical jobs. “The reason may be thatbility for staff development in the U.K. facility. At times, he has

while many women have applied for office-based jobs at the

faced challenges in the form of communication difficulties, differ-

plant, train manufacturing seems to be seen as work for men,”ences in technical background, and contrasting cultural attitudes

she says. “Even women already working in manufacturing

to work. Nevertheless, he says that the skills transfer successfully

excluded themselves from working here,” says Smith. To help

achieved to date is thanks to the “pride of local staff in train

redress that balance the plant has held two women-only open

manufacture” and their “keenness to learn.”days to give females a taste of the working environment and thetype of work done. The team is also working closely with the
UTC by holding events to encourage more girls to study STEM
and become the engineers of the future.

Yusuke Oyama (left) and Fumio Fujinaga, dispatched to Newton Aycliffe from the Kasado Works.

22

Jacquie Smith, who is in charge of CSR at the Newton Aycliffe plant

Hitachi, Ltd. | Integrated Report 2016

HITACHI’S AI
OPENING A NEW ERA
Hitachi AI Technology/H
Hitachi’s artificial intelligence technology, Hitachi AI
Technology/H, is generating new economic growth withAn experiment in which Hitachi-developed
AI learns to make a swing go higher. Whilelearning itself how to pump to make theversatility that makes it applicable to diverse indus-

height increase, the AI came up withtries even in a rapidly changing, unpredictable age.

techniques that a human on the swing

AI for Continuing Economic Growth

Hitachi AI Helping People Work Together

Recent years have seen an increase and diversification of data

The major characteristic of H is its versatility. Most new technology

types and formats, thanks to the rapid spread of cloud computing,has a history of being invented first for a specific purpose, later

mobile devices, and social media, along with the development of

spreading throughout more of industry and society as it is gener-

new sensor technologies to capture this data.

alized. At Hitachi, our prediction that AI will certainly reach an

In previous analyses conducted by human specialists, it was

would not have invented.

age of generalization has led us to pursue a more versatile AI

becoming increasingly difficult to test hypotheses through exhaustive

implementation from the very beginning.

sifting of this vast amount of data. As these data-driven results

H has three further characteristics.

became more inaccessible, it gave rise to social problems, such asa digital divide that was directly linked to an income divide.
In response to these changes, Hitachi developed technology(1) Human users define and input the outcome to be achieved.
(2) There is no need to define a specific method to solve theto use and apply this “big data,” and in 2012 launched a full-scale

problem or application in question.

big data analysis service. We have relationships with a wide range(3) H can be applied to existing systems.

of customers in the electric power, manufacturing, distribution,
finance, transportation, and water industries, and are making

For example, when the goal of “increasing sales” is input into

efforts to link infrastructure and products using the Internet ofH, it analyzes enormous quantities of past data and “thinks” onThings (IoT) and other means. In 2016, we began providing theits own to derive the best method to achieve this. Since it can be

Lumada IoT platform, developed as a core for social innovation.

added to existing systems, installation costs are also kept down.

One of its basic functions is Hitachi AI Technology/H, or simply

It is still humans, however, that define the goal for H and imple-“H” hereafter.

ment the measures it recommends. Hitachi H is a system in which

Now that Hitachi’s H has been put to practical use in various

humans and AI learn together through data to raise productivity.

industrial fields, we are building on our findings to improve thefuture, based on past data, and successfully deriving methods todeal with unknown problems.

Hitachi’s Approach to AI Systems
Monitoring ¦¥ Monitoring

Control ¦¥ Control

Point 1:
Learn from data and grow while adapting tocircumstances to produce results

Existing systems
IT/equipment

Artificial intelligence
Hitachi AI Technology/H

HumansCustomers/
employees

Point 2:
Optimize the system as a whole, including its human users
23

Example of AI Development
Versatile Hitachi AI Technology/H can respond to a wide range of work content, and is already producing resultsin many different industrial sectors.

Versatile Technology for Application in Diverse Fields

Contributing to Energy Savings in Railway Operation

Hitachi provides a wide range of services, from construction ofWith the goal of reducing CO2 to counter global warming,

electric power facilities, railroads, and other large-scale social

improved energy efficiency is needed in railway systems in Japan

infrastructure to manufacture of general household products.

and other countries. Railway systems consume 60% to 80% of

The accumulation of business data in these diverse fields worked

their total energy during rolling stock operation, and Hitachi has

to our advantage in the development of H. With the same AI

developed rolling stock and related systems to achieve energy

software, H provides comprehensive improvement strategies forsavings. H was introduced to verify these energy-saving effects.

businesses in completely different industries. Our record to date

Railway systems collect many different types of sensor infor-

includes 57 cases in 14 fields, including distribution, logistics,

mation, including through remote monitoring of rolling stockindustrial plants, finance, transportation, and manufacturing.

status. H was applied to this data to derive methods to effectively

Hitachi has since 2004 been researching and developing tech-

reduce energy consumption. After analyzing a year’s worth of

nology to objectively measure human behavior. Through ourdata, the program identified various characteristics related toanalysis of huge volumes of behavioral data, we have found thatenergy consumption from factors including speed, track gradient,

people who work in organizations featuring behavioral diversity

and operating schedule. Based on analysis of the massive data on

have high levels of happiness, and that groups with high levels of

the control of the “notch,” equivalent to the accelerator on anorganizational happiness have high productivity. In other words,

automobile, and its electric power consumption, we reduced

employees’ happiness is closely related to their organization’s

drive system power consumption by shortening the time of train

activity and should be considered to strongly affect productivity.

operation at maximum notch and lengthening the time of notch-

Hitachi has quantified this as a unique index: “organizational

off operation. Even greater effects are predicted if operating

activation.” In June 2016, we kicked off a demonstration experi-

procedures can be further improved.

ment using H to offer advice to 600 sales and marketing division

Future uses of H for railway systems big data are envisioned to

employees in the Hitachi Group in order to effectively increase

include applications to reduce energy consumption in the auxiliary

happiness. The aim is to raise productivity by providing the orga-

circuit systems used in air-conditioned cars and door opening/

nization with fresh energy tied to increased individual happiness.

closing, and to make settings with the purpose of achieving riding

With AI, Hitachi pursues optimization of overall systems,

comfort in terms of noise and vibration. In railway maintenanceincluding the humans that operate them, and is accelerating its

and management work as well, it may be possible to use H toSocial Innovation Business.

analyze employee “happiness” and apply the findings to raising
work efficiency. In raising car utilization, H is promising for deriving
the relationship between car deterioration with age and operating
conditions, and may possibly be applied to prevention and detection of equipment failure.

Employees with name-tag-style wearable sensors, which collect data on their behavior
when interacting with others for analysis by H.

24

Hitachi, Ltd. | Integrated Report 2016

Use in the Field of Finance for a FinTech Age

AI to Link Manufacturing-Sector Facilities

Financial services have expanded together with the progress in IT.

Use of IoT is progressing in the manufacturing sector. In Western

FinTech, a coined term combining the words “finance” andcountries, government-led efforts are under way to construct“technology,” refers to the new financial services that haveand standardize new industrial “ecosystems” integrating theappeared in recent years, bringing together finance and IT to

manufacturing and IT industries.

improve user convenience. Typical examples of FinTech are services

Hitachi has provided control and production management

using the Internet to move capital beyond the scope of traditional

systems to the steel, automobile, pharmaceutical, and various otherservices and business frameworks, as well as crowdfunding, which

industries, and has a proven record in constructing large-scaleprocures capital from multiple individuals using social networks.

control systems in fields from energy and transportation to water

Hitachi has focused on AI in the financial industry as well,and sewage. Building on this experience, we produce value by

conducting a joint experiment with The Bank of Tokyo-Mitsubishi

linking various systems to the manufacturing industry and social

UFJ that puts human behavior measurement and analysis tools to

infrastructure. We have proposed the concept of “symbiotic

use in improving quality and supporting work style reforms. Up

autonomous decentralization” to promote new growth.

to now it has been possible to acquire behavioral data on several

Previously, optimization was limited in scope to analyses onhundred people in units of seconds, but specialist analysis was

the individual system level and site improvements based on thoserequired to judge those people’s level of contribution to organiza-

analyses. Linking factories by symbiotic autonomous decentral-tional activation, and both time and cost were issues. Hitachi

ization, however, makes it possible to carry out optimization overdeveloped name-tag-style wearable sensors to measure people’s

multiple systems and create new value chains.

behavior when in groups. H then analyzed the behavioral data

Other beneficial effects of linking factories include improved

obtained from those sensors, automatically and efficiently produc-energy productivity and coordination with supply chain manage-

ing recommendations on ways of working to raise productivity.

ment across global sites. An impact is also expected in business

The experiment drew on behavioral data from 40 employees

continuity plan (BCP) responses to cyber attacks and other factorycollected over three weeks. It found, for example, that one

operation risks.

employee showed a high level of organizational activation on a

In some manufacturing sites, H has been used to analyze vast

day when there were frequent short conversations, including

amounts of data collected by control systems on manufacturinggreeting others and making brief reports. This demonstrated that

equipment, manufacturing processes, and product quality. We have

while the productivity of specific individuals may decrease withbegun to analyze the relation between equipment or processes

repeated conversations, the productivity of the organizationand quality or yield rate. H can derive statistical characteristics

overall can rise. AI analyses that quantify individual contributions

through big data analysis that would be nearly impossible forto the organization as a whole can be useful for optimizing

humans to perform. In manufacturing sites where conditions areservices and working styles.

inconsistent, due to factors like manufacturing processes thatchange daily and equipment wear and deterioration, H is useful
in defining operating conditions that are appropriate to thechanges and obtaining new hints for improvements.

Application Examples of Hitachi AI Technology/H
Just one AI software package has enabled versatile improvement in fields from distribution, logistics, and industrial plants tofinance, transportation, and manufacturing
Distribution

Logistics

Detailed analysis of customer and employee behavior identified “high sensitivity
spots” to station employees to boost average sales per customer.

Analysis of daily shipment work results led to work instruction improvement
plans for the following day; these were reflected in the picking list
(work instruction chart).

Sales per customer up 15%

Productivity up with 8% reduction in work hours

Call centers

Desalinization plants

Data analysis on employee behavior found relationship between verbal support fromsuperiors and order receipt rate. H identified employees needing priority attention.

Examination of operating history data helped reduce clogging of the reverse
osmosis (RO) membrane, a factor impacting uptime for seawater filtration units.

Order receipt rate up 27%

Operating cost: 3.6% reduction





25

Board of Directors
As of June 30, 2016

Outside Directors

26

Baba Kalyani

Cynthia Carroll

Sadayuki Sakakibara

1983	Joint Managing Director,
Bharat Forge Limited
1994 Managing Director, Bharat Forge Limited
1997	Chairman & Managing Director,
Bharat Forge Limited (Currently in office)2016 Director, Hitachi, Ltd.

1991 General Manager, Foil Products, Alcan Inc.
1996	Managing Director, Aughinish Alumina Ltd.,
Alcan Inc.
1998	President, Bauxite, Alumina and Speciality
Chemicals, Alcan Inc.
2002	President & CEO, Primary Metal Group,
Alcan Inc.
2007	CEO, Anglo American plc.
(Retired in April 2013)2013 Director, Hitachi, Ltd.

2002	President and Representative Member ofthe Board, Toray Industries, Inc.
2010	Chairman of the Board and Representative
Member of the Board, Toray Industries, Inc.
2013 Director, Hitachi, Ltd.
2014	Chairman of the Board, Toray Industries, Inc.
2015	Chief Senior Advisor and Chief SeniorCounselor, Toray Industries, Inc.
(Currently in office)George BuckleyLouise Pentland

Harufumi Mochizuki

1993	Chief Technology Officer, Motors, Drives andAppliances, Emerson Electric Company
1994	President, US Electrical Motors, Emerson
Electric Company
1997	President, Mercury Marine Division andCorporate Vice President, Brunswick
Corporation
2000	President and Chief Operating Officer,
Brunswick Corporation
	Chairman and Chief Executive Officer,
Brunswick Corporation2005	Chairman of the Board, President andChief Executive Officer, 3M Company
2012	Executive Chairman of the Board,
3M Company (Retired in May 2012)	Chairman, Arle Capital Partners Limited(Retired in December 2015)
Director, Hitachi, Ltd.

1997 Admitted as a Solicitor (UK)2001	Senior Legal Counsel, Nokia Networks,
Nokia Corporation
2004	Vice President and Head of Legal,Enterprise Solutions, Nokia Corporation2007	Vice President, Acting Chief Legal Officer
and Head of IP Legal, Nokia Corporation
2008	Senior Vice President and Chief Legal Officer,
Nokia Corporation2009	Admitted to New York State Bar Association2011	Executive Vice President and Chief Legal
Officer, Nokia Corporation(Retired in May 2014)2015 General Counsel, PayPal, eBay Inc.
Director, Hitachi, Ltd.
	Senior Vice President and Chief Legal Officer,
PayPal Holdings, Inc. (Currently in office)2002	Director-General for Commerce andDistribution Policy, Minister’s Secretariat,
Ministry of Economy, Trade and Industry ofJapan (“METI”)
2003	Director-General, Small and Medium
Enterprise Agency, METI
2006	Director-General, Agency for Natural
Resources and Energy, METI
2008	Vice-Minister of Economy, Trade andIndustry of Japan
2010	Special Advisor to the Cabinet of Japan(Retired in September 2011)	Senior Adviser to the Board, Nippon Life
Insurance Company (Retired in April 2013)2012 Director, Hitachi, Ltd.
2013	President and Representative Director,
Tokyo Small and Medium Business
Investment & Consultation Co., Ltd.
(Currently in office)Hitachi, Ltd. | Integrated Report 2016

Takatoshi Yamamoto

Philip Yeo

Hiroaki Yoshihara

1995	Managing Director, Morgan Stanley
Japan Limited
1999	Managing Director and Vice Chairman,
Tokyo Branch, Morgan Stanley
Japan Limited
2005	Managing Director and Vice Chairman,
UBS Securities Japan Co., Ltd.
2009	Managing Director, CASIO COMPUTER
CO., LTD.
2011	Advisor, CASIO COMPUTER CO., LTD.
(Retired in June 2012)2016 Director, Hitachi, Ltd.

1970 Joined Ministry of Defense of Singapore
1979	Permanent Secretary, Ministry of Defenseof Singapore
1986	Chairman, Economic Development Boardof Singapore
2001	Chairman, Agency for Science, Technology
and Research of Singapore
2007	Senior Advisor for Science and Technology to
the Ministry of Trade & Industry, Singapore(Retired in September 2008)	Special Advisor in Economic Development,
Prime Minister’s Office, Government ofSingapore (Retired in August 2011)
	Chairman, SPRING Singapore(Currently in office)2012 Director, Hitachi, Ltd.

1978 Joined Peat Marwick Mitchell & Co.
1996	National Managing Partner, the Pacific Rim
Practice, KPMG LLP
1997 The Board Member, KPMG LLP
2003	Vice Chairman and Global Managing
Partner, KPMG International(Retired in April 2007)2014 Director, Hitachi, Ltd.

Hiroaki NakanishiToyoaki Nakamura

Directors

Kazuyuki Tanaka

Representative Executive Officer

1977 Joined Hitachi Chemical Company, Ltd.
2005	Executive Officer, Hitachi Chemical
Company, Ltd.
2006	Senior Executive Director, Hitachi MediaElectronics Co., Ltd.
	Representative Director and President,
Hitachi Media Electronics Co., Ltd.
2008	Vice President and Executive Officer,
Hitachi Chemical Company, Ltd.
2009	Representative Executive Officer,
President & Chief Executive Officer,
Hitachi Chemical Company, Ltd.
	Director, Representative Executive Officer,
President & Chief Executive Officer,
Hitachi Chemical Company, Ltd.
2016	Chairman of the Board, Hitachi Chemical
Company, Ltd. (Currently in office)Director, Hitachi, Ltd.

1970
2003

Joined Hitachi, Ltd.
General Manager, Global Business
Vice President and Executive Officer
2004 Senior Vice President and Executive Officer
2005	Senior Vice President and Executive Officer,
Hitachi, Ltd.
	Chairman and Chief Executive Officer,
Hitachi Global Storage Technologies, Inc.
2006	Executive Vice President and Executive
Officer, Hitachi, Ltd.
(Retired in December 2006)
2009	Executive Vice President and Executive
Officer, Hitachi, Ltd.
2010 President, Hitachi, Ltd.
President and Director, Hitachi, Ltd.
2014 Chairman & CEO and Director, Hitachi, Ltd.
2016	Chairman of the Board and Representative
Executive Officer, Hitachi, Ltd.

Toshiaki Higashihara
Representative Executive Officer
President & CEO

1975 Joined Hitachi, Ltd.
2006 General Manager, Finance Department I
2007 Senior Vice President and Executive Officer	Senior Vice President, Executive Officer andDirector
2009 Senior Vice President and Executive Officer
2012	Executive Vice President and Executive
Officer (Retired in March 2016)2016 Director

1977 Joined Hitachi, Ltd.
2006	Chief Operating Officer, Information &Telecommunication Systems
2007	Vice President and Executive Officer(Retired in March 2008)
2008 President, Hitachi Power Europe GmbH2010	President and Chief Executive Officer,
Hitachi Plant Technologies, Ltd.
	President and Representative Director,
Hitachi Plant Technologies, Ltd.
2011	Vice President and Executive Officer,
Hitachi, Ltd.
2013	Senior Vice President and Executive Officer,
Hitachi, Ltd.
2014 President & COO, Hitachi, Ltd.
President & COO and Director, Hitachi, Ltd.
2016 President & CEO and Director, Hitachi, Ltd.

Note: Directors are listed by position and in Japanese alphabetical order within each grouping.

27

Executive Officers
As of August 1, 2016

President & CEO

Executive Vice Presidents and Executive Officers

Toshiaki Higashihara*

Ryuichi Kitayama*

Yutaka Saito*

Koji Tanaka*Toshikazu Nishino*Overall operations

Assistant to the President,
marketing and sales, and social
innovation business promotion

Assistant to the President andopen innovation promotion

Assistant to the President

Assistant to the President andmanagement strategies

Senior Vice Presidents and Executive Officers

Masakazu Aoki

Shinichiro Omori

Toshiaki Kuzuoka*

Keiji Kojima

Hiroshi Sato

Industrial products business

Cost structure reform andinformation technology
strategies

Corporate communications
and CSR, legal matters, risk
management and corporate
auditing

Service & platform business

Building systems businessKeiichi Shiotsuka

Yasuo Tanabe

Alistair Dormer

Mitsuaki Nishiyama*

ICT businessGovernment & external relations

Railway systems business

Finance and corporate pension
systemVice Presidents and Executive Officers
Hiroyuki Ugawa

Ryuichi Otsuki

Atsushi Oda

Kaoru Kawano

Kenichi Kokubo

Manufacturing & commercebusiness

Regional strategies (Americas)
and ICT business(platform business)

Electric power business

Marketing and sales(industrial products business)

Regional strategies (China)

Keizo Kobayashi

Kunizo Sakai

Setsuo Shibahara

Akira Shimizu

Norihiro Suzuki

Urban solutions business

Water business

ICT businessGovernment & external relations

Research & development

Yoshitaka Tsuda

Hidenobu Nakahata

Hiroshi Nakayama

Katsumi Nagasawa

Isao Narukawa

Marketing and sales(ICT business and healthcare
business)

Human capital

Cost structure reform andsupply chain management(MONOZUKURI and quality
assurance)

Nuclear power systems business

Marketing and sales(nuclear power systems business,
electric power business andenergy solutions business)

Masaaki Nomoto

Kentaro Masai

Mamoru Morita

Masaya Watanabe

Energy solutions business

Railway systems business

Management strategies

Healthcare business

Representative Executive Officer
Hiroaki Nakanishi*
General management

Note: Executive officers are listed by position and in Japanese alphabetical order within each grouping.
* Denotes executive officers who are representative executive officers.

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