CEO Message

Visionbase that endured even during the COVID-19 pandemic. Furthermore, by strengthening cash
management, we have increased operating cash flow by approximately ¥230 billion year overyear and established a strong business base poised for sustainable growth in the future.
These results are entirely due to the efforts of our employees. By making the health and safetyof our employees, their families, customers, and business partners our top priority last fiscal
year, we established a strong remote work environment that allowed us to focus our efforts on
supporting customers and maintaining social infrastructures. I would like to express my deep
appreciation to the employees who adapted themselves to the new normal and bravely continued
to perform their duties in keeping with the changing needs of customers and society as a whole.

Fiscal 2020 saw progress in expanding the Lumada business andstrengthening the business portfolio

Executive Chairman & CEO

Stakeholder capitalism

Social Innovation BusinessBusiness that resolves a variety
of issues faced by society andcustomers in a broad rangeof fields, especially social
infrastructure, through the useof information technology (IT)and co-creation with diverse
partners.

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Hitachi Integrated Report 2021

P.12

Lumada Alliance Program
A program that builds
ecosystems through an open
innovation community based onmatching with diverse partners
to resolve social issues thatcannot easily be overcome bya single company alone andaccelerate social innovations
that create value.

Lumada Innovation Hub
Tokyo
The flagship location for theLumada Innovation Hub,which serves as a hub for cocreation activities, connecting
customers and partners tocreate innovations and creating
new value by combining theirrespective knowledge and ideas.

Data

The notion that a company
creates long-term value forall stakeholders, including
customers, employees,
suppliers, local communities,
and shareholders.

In 2020, as the world confronted the dramatic impact of COVID-19, a number of pressing socialand economic issues were brought to light. From the perspective of sustainability, activities
targeting climate change and human rights have quickly emerged as the most urgent issues
worldwide, including in Japan.
After the disruption of the past year, even capitalism itself is seeing a transformation from thelong-practiced “shareholder capitalism” to “stakeholder capitalism,” which prioritizes long-termvalue creation for a wide range of stakeholders. In addition to economic value, in the context ofcorporate activities, a greater emphasis is now being placed on environmental value and social
value. Last year’s Integrated Report demonstrated how the environmental changes brought onby the pandemic provided an opportunity to achieve things that we could not have achieved in
the past. In keeping with emerging global demands, the Social Innovation Business has worked
to offer remote, contactless, and automated solutions. By responding to these changes in thebusiness environment, Hitachi posted an adjusted operating income ratio in fiscal 2020 of 6.5%
in its five sectors—IT, Energy, Industry, Mobility, and Smart Life—all despite the negative effects
of COVID-19. Although this figure represents a decline of two percentage points compared withthe previous year, it exceeded the initial forecast of 5.3%. Though our response has allowed
for an ideal V-shaped recovery following the decline into negative profits in fiscal 2008, Hitachi
has continued to change. By embracing social innovation, Hitachi has been able to target
structural reforms that allow it to better generate social innovations and create a solid profit

Business that realizes social
innovations through solutions
and services that apply Hitachi’s
advanced digital technologies.

Governance

Maintaining a solid profit base amid major changes

Lumada business

Sustainability

Toshiaki Higashihara

Value Creation

Hitachi: Leading the Worldin DX and Decarbonization

In fiscal 2020, Hitachi’s Lumada business continued to grow despite the COVID-19 pandemic.
Lumada has expanded steadily since it was first offered in 2016, and in November of lastyear, we started the Lumada Alliance Program, which was followed by the opening of theLumada Innovation Hub Tokyo in April of this year. Additionally, we completed the acquisition of
GlobalLogic, a leading U.S.-based digital engineering services company, which will enable us tofurther strengthen our global rollout and increase sales from 1.1 trillion yen in fiscal 2020 to 1.6
trillion yen in fiscal 2021, with the goal of accelerating this to 3 trillion yen by fiscal 2025.
Until now, we have strengthened the business portfolio with a focus on becoming a company
with business that can compete as a leader in the global market. Securing competitiveness isan essential condition in achieving digital solutions that will bring about social innovations thatgenerate new value.
In fiscal 2020, we made substantial progress in strengthening our five sectors and reorganizing
our business portfolio with a focus on readjusting capital relationships with listed subsidiaries.
In addition to the sell-off of Hitachi Chemical in April 2020, in May of that year, we converted
Hitachi High-Tech Corporation into a full subsidiary. Hitachi High-Tech boasts top of the line
measurement and analysis technologies and undertakes business involving in-vitro diagnostics
as well as semiconductor manufacturing equipment. In July 2020, we acquired ABB’s power
grids business, which has the top level market share and advanced technologies. Thisacquisition, which brought with it more than 15,000 customers in about 90 countries worldwide
and welcomed approximately 36,000 outstanding employees into the Hitachi Group, contributed
to the strengthening of our management base, which is essential to accelerating the rollout ofHitachi’s Social Innovation Business on a global scale. Specifically, to effectively utilize the global
operations of Hitachi ABB Power Grids throughout the entire organization, we are currently
promoting the construction of common ERP systems and global shared services. From this, we
expect to achieve cumulative cost reductions of 70 billion yen and 100 billion yen in these two
fields, respectively, by fiscal 2025. In January 2021, we launched Hitachi Astemo through the
integration of Hitachi Automotive Systems with three Honda affiliates: Keihin Corporation, Showa
Corporation, and Nissin Kogyo Co., Ltd. These integrations will streamline the development ofcore parts and solutions in the shift toward electric power, which represents the key to developing
the next-generation of automobiles, while securing a leading position and creating mobility
solutions for the future. In April 2021, a decision was made to sell off Hitachi Metals by the endof this fiscal year. Moving forward, Hitachi Metals will strengthen its competitiveness and recoverprofitability under an ownership group led by the Bain Capital Consortium.
In fiscal 2020, we decided to pull out of business operations on the Horizon project, theconstruction of a new nuclear power plant in the United Kingdom. In the nuclear power business,
Hitachi will focus on the decommissioning and reactivation of power plants in Japan, a task ofgreat social significance to society. Hitachi has been involved in the nuclear power business for
50 years, and we look forward to fulfilling our responsibilities through this business in the future
as well, in line with the Japanese government’s energy policies.
The strength of our global business portfolio, which was built through a comprehensive processof business selection and concentration, was demonstrated throughout COVID-19. Even as we
maintain the competitiveness of each individual business, we will further refine those strengths todemonstrate comprehensive capabilities in the context of digital solutions.

3

In fiscal 2021, we will complete the transition to a “growth mode”

An American robotic systems
integration company acquiredby Hitachi in December 2019.
Involved in the construction of
production lines and logistic
systems using industrial robots
for customers in the automotive,
aerospace, e-commerce, andmedical device industries, mainly
in North America.

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Hitachi Integrated Report 2021

* Gartner, Magic Quadrant for
Industrial IoT Platforms, Eric
Goodness, et al.,19 October
2020
Gartner Disclaimer
Gartner does not endorse any vendor,
product or service depicted in its
research publications, and does notadvise technology users to select only
those vendors with the highest ratingsor other designation. Gartner research
publications consist of the opinionsof Gartner’s research organizationand should not be construed asstatements of fact. Gartner disclaims
all warranties, expressed or implied,with respect to this research, including
any warranties of merchantability or
fitness for a particular purpose.

Data

Began operations in July
2020, following the acquisitionof the power grids businessfrom ABB, a major heavy
electrical equipment company
headquartered in Switzerland.
Provides the world’s mostadvanced power transmission
and distribution systems,
products, and services, including
micro-grids that achieve highly
reliable electric power supply,and high-voltage direct current(HVDC) power transmission
systems that enable large-scaleenergy transmission over long
distances. In October 2021, thecompany’s name was changed
to Hitachi Energy, to show astrengthened commitment tosustainable energy in the future.

Ever since its establishment in 1910, Hitachi has taken a “product out” approach, bringing about
innovations and responding to customer needs through product development and the leveragingof outstanding technical capabilities. Since the beginning of the 2000s, however, we have shifted
our mindset from a product-oriented to a customer-oriented approach, as we strive to transform
into a company that provides social innovations. The most significant change in direction toward
customer-oriented co-creation took place in 2016, when we launched the Lumada businessamid the rapid proliferation of digital technologies.
In this context, “customer-oriented” refers to an approach built on collaborating to discoverand resolve the issues faced by customers. For example, if a customer in the manufacturingindustry that owns several plants needs to reduce lead-time and increase quality, we share thosemanagement issues and work together to devise the ideal solution.
In recent years, the social issues that dominate our headlines have become increasingly complex
and diverse, as can be seen throughout the world in the context of climate change, aging
populations, natural disasters, and the resulting fragmentation of supply chains. We are seeing a
growing demand to resolve these social issues not through an extension of existing solutions, but
by using “value” as a starting point, with a view toward future society and the value that should
be provided to make that society a reality. There are limits, however, to the issues that Hitachi canresolve on its own. To bring about social innovations that will create value in people’s lives, it isessential that we undertake co-creation with a range of diverse stakeholders, including customers
and partners. We believe that this presents an ideal opportunity to apply the strength of open
approaches, one of the unique features of Lumada. By leveraging this strength, we have madeLumada an open platform that welcomes many stakeholders, and we have kicked off the Lumada
Alliance Program to build an ecosystem that enables us to provide approaches and solutions to

A platform that gathers
and catalogs new solutions
developed through co-creationand enables those solutions
to be built and introduced
quickly and easily in cloudenvironments.

Governance

Hitachi ABB Power Grids

Becoming a platform provider that brings about DX for society

Lumada Solution Hub

Sustainability

JR Automation

Value Creation

P.29

VisionGlobalLogic

Fiscal 2021 is the final year of the 2021 Mid-term Management Plan, in which we declared that
Hitachi would become a global leader in the Social Innovation Business.
Our first area of focus will be to accelerate the global rollout of the Lumada business with theacquisition of GlobalLogic. GlobalLogic develops software for customers in fields such as
healthcare, telecommunications, manufacturing, and the automotive sector, leveraging thestrength of some 21,000 digital specialists and eight co-creation bases worldwide. Based on
dialogues with customers, GlobalLogic provides solutions that resolve issues from a customer
perspective, and we feel that this business demonstrates a high affinity with Hitachi’s Lumada
platform. Boasting strong trust relationships with customers and a customer retention rate ofmore than 90%, one of GlobalLogic’s most attractive features in terms of technical capabilities is
the scope of “Chip-to-Cloud” development, which enables collaborations ranging from frontline
data and micro-programs in devices to cloud environments. By making GlobalLogic part of the
Hitachi Group, we will strengthen co-creation with customers on a global scale. At the sametime, we will combine GlobalLogic’s engineering capabilities with Hitachi’s system development
capabilities to strengthen the development and provision of globally scalable applications andservices, thereby accelerating DX in social infrastructure throughout the world.
We have established the major framework for future growth by acquiring powerful assets in arange of business domains, including JR Automation in 2019, Hitachi High-Tech and Hitachi ABBPower Grids in 2020, and Hitachi Astemo in 2021. Moving forward, we will leverage these assets
to demonstrate synergy with digital technologies in each region and create an even more robust
Hitachi.
In the past, Hitachi Astemo operated in the Smart Life sector, but starting from fiscal 2021, Hitachi
Astemo will operate as an independent segment (the Automotive Systems Segment), as we aim
to accelerate business growth in six segments. Although the effects of COVID-19 still linger, we
will secure an adjusted operating income ratio of 8% in fiscal 2021, and in fiscal 2022, the firstyear of the new Mid-term Management Plan, we will bring this figure above 10%. We will position
fiscal 2021 as the year in which we complete the transition to a growth mode, as we work tofurther strengthen profitability.

social problems together with those stakeholders. Through the open innovation community that
Hitachi provides, we will combine the diverse knowledge and expertise of our partners and create
new solutions to social issues that would have been difficult to resolve alone. The solutions createdthrough this process are registered in the Lumada Solution Hub where they can be further used bya variety of customers and partners to achieve a chain of value creation and continuous innovation.
The Lumada Alliance Program already includes dozens of customer and partner companies. It
is important to continue creating innovation through products and promoting business from acustomer perspective, but we expect to see an increasing number of social issues that cannot
be resolved without close collaboration and activities involving multiple companies. We are awarethat as the public face of the Lumada business, Hitachi will be required to demonstrate strong
leadership while exemplifying the social values we hope to advance.
Furthermore, to resolve the issues unique to countries and regions throughout the world, wemust provide a venue for co-creation, designed to promote discussion and increase awarenessof customers’ issues while developing solutions. With this in mind, Hitachi has established 11
co-creation bases around the world, including the United States, the United Kingdom, Thailand,
and China. This year, we added eight co-creation bases run by GlobalLogic, mainly in Europe
and the Americas. The Lumada Innovation Hub Tokyo opened this spring to gather DX specialists
and to promote practical co-creation using real-world data. All co-creation bases are connectedvirtually to form a venue for embodying ideas to promote the development and provision ofsolutions more efficiently. We will continue to promote co-creation from a medium- to long-term
perspective using the Kyōsō-no-Mori innovation base, as well as through collaboration and cocreation with research agencies in Japan and around the world.
I have personally been conducting outreach activities to raise broader awareness of Hitachi as acompany that promotes DX in social infrastructures on a global scale, and I am extremely pleased
to see that recently we have received an increasing number of positive reactions from outside
the company.
For example, Hitachi is recognized as a Leader based on its’ completeness of vision and ability to
execution in the “2020 Gartner Magic Quadrant for Industrial IoT Platforms report” which evaluatesproviders of industrial IoT platforms*. In addition, in June of this year, Hitachi was recognized for
promoting the DX business using Lumada, as well as for its in-house digital applications, receiving
the Grand Prix in the DX Stocks 2021 awards from the Ministry of Economy, Trade and Industry
and the Tokyo Stock Exchange.

5

Focusing on three fields: the Environment, Resilience,and Security & Safety

Hitachi offers operational
technology (OT) cultivated mainlyin the social infrastructure field,
along with advanced information
technology (IT) and products.
Hitachi’s strength is in its ability
to realize DX for customers andsociety by combining these threeelements.

Creation of Social andEnvironmental Value

P.34

Executive Officers’
Compensation

P.89

GovernanceAmong the three fields mentioned above, there is no doubt that environmental issues are
the most urgent. Earlier, I mentioned how Hitachi’s businesses contribute to a decarbonized,
resource-efficient society, but Hitachi’s in-house corporate activities are also working toward thisgoal.
Hitachi declared its intention to achieve carbon neutrality at in-house business offices andproduction bases by fiscal 2030, and in December 2020, we were certified under the Science
Based Targets initiative (SBTi) for these activities. In January 2020, Hitachi’s Omika Works
became the first factory operated by a Japanese company to be listed in the World Economic
Forum Lighthouse under the “most advanced factory” category. The efficiency-boosting activities
undertaken at Omika Works will be expanded throughout the entire value chain. Hitachi aims toachieve carbon neutrality across its entire value chain together with our customers by fiscal 2050.
In April of this year, we appointed Executive Vice President Alistair Dormer as Chief Environmental
Officer to accelerate these activities. We also incorporated environmental value into thecompensation structure for executives as a KPI starting from April 2021 to promote a greaterawareness of reducing CO2 emissions in the context of day-to-day operations. We will accelerate
the formulation and execution of environmental strategies as a leading company in the creationof environmental value, on par with the activities of leading environmentally-oriented companies.

A treatment system thatprojects a particle beam (e.g.,
proton beam or carbon beam)
to destroy or kill cancer cells.
Treatment can be provided
on an outpatient basis, withlittle impact on the patient’s
body, enabling treatments thatmaintain the patient’s qualityof life.

Sustainability

Fostering human resources with the ability
to empathize with society
The value of human resources is an important element of Hitachi’s sustainable growth. As I
mentioned last year, in our efforts to promote the Social Innovation Business, it is essential thateach Hitachi employee see social issues as relevant to their own lives. Each individual must takeon the challenges faced by customers, markets, and regions throughout the world, and offer
solutions. To do this, we will need to make a transition to job-based HR management, in which
the right people are assigned to the appropriate positions according to their own goals andabilities.
In the work culture that we are aiming to create, employees announce the social issues thatthey want to take on. The company can contribute to these efforts by recognizing employees fortheir determination to take on these issues. In last year’s Integrated Report, I gave an example
of an assignment where I personally felt a strong motivation and sense of satisfaction, when I
was in charge of introducing the Autonomous decentralized Transport Operation control System(ATOS)—a transport management system for the Tokyo area—in collaboration with East Japan
Railway Company about 25 years ago. A real sense that you are contributing to society andwords of appreciation from the customers are the driving force that creates a sense of autonomy

Data

Hitachi Integrated Report 2021

The environment: An urgent issue
Aiming for carbon neutrality

Particle therapy system forcancer treatment

Value Creation6

Hitachi has always strived to improve people’s quality of life and increase value for partnercompanies by making maximum use of its strengths in “OT x IT x Products” and offering
consumer-centric digital solutions that use the Lumada platform, based on ideas from thecustomer’s perspective. When thinking about the future from a value perspective, we need tocreate an ideal vision of people’s lives at a certain point in the future—for example, in 2050—
and then back track from that vision to determine what we should do now and what we should
prepare. Thinking from that perspective, there are three fields in which Hitachi can create newvalue for society through the Social Innovation Business, and in which Hitachi can grow: theEnvironment, Resilience, and Security & Safety.
I would like to talk for a moment about Hitachi’s vision for this future society and people’s lives
in the context of these three fields. In the environmental field, we will contribute to achieving adecarbonized, resource-efficient society. Hitachi will contribute to building a new society, mainly
through the power grids business, which supports the transition to renewable energy; theautomotive systems business, which promotes the transition to electric vehicles and other formsof electric power to achieve a decarbonized society; and the railway systems business, which
accelerates green mobility.
For example, the society of the future will use electric power supplied by wind power generation.
However, the locations where wind power generators can be installed are limited, so achieving
this goal will require technologies that can supply energy efficiently across long distances.
We will respond to these needs by developing solutions that incorporate direct current powertransmission, transformer stations, and transformer devices. Replacing gasoline with electricity is
one solution for achieving a society in which people are able to use carbon-free, next-generation
automobiles. Rather than creating these solutions as an extension of existing technologies
and businesses, we need to back track from this future vision and study issues such as power
generation and energy storage before deciding how best to move forward.
Our goal in the second key field of resilience is to achieve a society that can withstand thefragmentation of public services and social systems arising as a result of natural disasters andinsufficient resources. We need to build a resilient society that can recover quickly and protect
people’s lifestyles even in the face of disaster. Countries around the world are confronting aging
infrastructure while also investing in digitization against the backdrop of rapid urbanization andpopulation increases. Governments and companies must face the possibility of a decreasing
labor force due to an aging population, as well as a resulting decline in economic activity. In
the industrial world, amid continuing globalization and digitalization, and with the backdrop of
insufficient resources, there is a growing demand for management systems that provide support
to global supply chains and these systems could become a source of competitive superiority forother companies. In response to these issues, we will support sustainable public services andcorporate activities by providing platforms for digital services that target public institutions andthe financial industry; robotics SI and other innovative digital solutions as well as logistics services
that link various parts of the supply chain, such as manufacturing, warehouses, and distribution;
along with cybersecurity that protects all of these component elements.

VisionOT × IT × Products

Finally, in the security & safety field, as we enter an era in which it is said that people will live for
100 years, we will strive for a society in which everyone can live active lives, enjoying health in both
body and mind. To help achieve this, Hitachi will develop and provide the mobility and building
services and connected appliances required to build cities and support safe and healthy lifestyles
from childhood to old age. In addition, Hitachi will spearhead the development of healthcare
solutions that support healthy lifestyles for everyone throughout their entire lives. In creating thenext generation of healthcare solutions, we must go beyond simply testing and treatment, weneed to support healthy living through the entire life cycle, from prevention of illnesses through tothe senior years, when long-term care is needed. We must also provide individualized healthcare
and build healthcare systems that meet the diverse needs of different individuals and regions. In
addition to contributing to testing and treatment through in-vitro diagnostics (IVD) technologies,
particle therapy systems and pharmaceutical manufacturing solutions, we will improve people’squality of life by providing new healthcare services using data obtained from those systems anddevices.

7

Visionin each individual employee. I want to transform this positive force into motivational energy forthe growth of Hitachi as a whole. We are putting in place an environment to support autonomy,
including the “Make a difference!” in-house idea contest that began in 2015, and the Future
Investment Division, an organization established directly under the president four years ago. In
addition, Hitachi has conducted studies of new business creation and fields to be strengthenedin the medium and long term based on trends in next-generation technologies and changes in
the world at large.

“空己唯盡孚誠”— Feel empathy with heart empty and contribute topeople with sincerity: The empathetic mind

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Hitachi Integrated Report 2021

Diversity & Inclusion

P.42

Data

https://www.hitachi.
co.jp/products/it/lumada/
about/ai/ldsl/document/
ai_document_en.pdf

I’ve placed an emphasis on dialogue and engagement with shareholders and investors, andrecently, I have had increasing opportunities to discuss a wide range of topics, including
environmental issues and human resource development. Environmental, social, and governance(ESG) criteria are top priorities in corporate management and it is understood as responsibilities
to society. To further merge business and sustainability, Hitachi established the Executive
Sustainability Committee, comprised of members of the Senior Executive Committee (where I
serve as Chairman) along with CEOs from the various business units and General Managers fromthe various Head Office divisions, to discuss and decide on important policies and initiatives.
Regarding human resources, we will increase engagement with employees and the effective useof human resources on a global scale, and at the same time promote diversity and inclusion, withthe goal of increasing the ratio of both female and non-Japanese executives and corporate officers
to 30% by fiscal 2030. Hitachi will also strengthen its response to issues related to human rightsthat have come to light recently by conducting partner audits and building a human rights risk
management structure. With regard to corporate governance, even looking at the compositionof the Board of Directors, it is clear that we have built a structure that emphasizes independence
and diversity with independent directors accounting for 10 out of 13 board members, six of whom
are non-Japanese. We have also recently introduced environmental indexes into the evaluationof executive compensation, and we are strengthening risk management as well, for example, interms of compliance, crisis, and business risks.
After making clear to all shareholders our policies regarding the allocation of management
resources, we will ensure a stable increase in dividends, while at the same time considering thepossibility of conducting share buybacks at the appropriate time, as part of efforts to share thefruits of growth with stakeholders.
Hitachi’s ideal image as a global leader in the Social Innovation Business is directly in line with
its public perception as a next-generation leader. We will continue our efforts to gain the trustof those around us by emphasizing openness and transparency while involving others with an
empathetic attitude. At Hitachi, we believe that a true leader is not someone who stands at thehead of the line and leads the way. Instead, a true leader looks toward the future with great
perspective, gained from encountering new ideas while working tirelessly to implement policies
that result in the best possible future for everyone. I will take every necessary step to bring Hitachicloser to this ideal image of a global leader. I look forward to your continued support as we
continue this work together.

Governance

Hitachi’s “Principles
guiding the ethical use of
AI in Social Innovation
Business”

I believe that the role of the CEO is to present a vision, lay out a path toward realizing that vision,and communicate this to others. I often say to future leaders, “Leaders must always see thingsfrom the perspectives of time, regions, and value, and pick up on trends.” If you think about thevalues in each region, which change over time, then what needs to be done now will become
clear, in the context of social, environmental, and economic value. Based on this view, the quality
demanded of a leader is the ability to present a vision of how Hitachi’s assets should be used toachieve a richer society, lay out a road map for realizing that vision, and communicate that roadmap to society.
When thinking about the company’s vision, the important thing is how we define a rich society
and people’s happiness. I believe that society must enable each individual to freely pursue andrealize his or her own form of happiness. We can make society more comfortable and convenientthrough the evolution of digital technologies and progress in robotics and AI, but humans
ultimately control these technologies, so the central assumption is that people are able to use AI,
robotics, and other technologies. This year, Hitachi established principles guiding the ethical use
of AI, and in the context of ethics training for engineers as well, we will continue to communicate
the importance of human-centric innovations.

To become a global leader in the Social Innovation Business

Sustainability

The role of the CEO and the essential attributesof next-generation leaders

Value Creation

Hitachi is driven by people with empathetic minds. This has been true throughout Hitachi’s
history. Hitachi was founded as a venture company by Namihei Odaira in 1910. Ever since
its establishment, based on the corporate philosophy of “Contributing to society through thedevelopment of superior, original technology and products,” Hitachi has put forward the founding
concepts of harmony, sincerity, and a pioneering spirit, and has placed great value on a venturespirit. At the entrance to the Hitachi Central Research Laboratory, you will find the words of
Kumeo Baba, one of Hitachi’s founders, who said: “Empty your mind, and devote yourself tosincerity.” One of the Chinese characters he uses is “孚,” which is said to represent a motherbird protecting her eggs. Similarly, when we interact with customers, it is important that we adopt
the stance of expressing empathy, putting aside our ego, and devoting ourselves to sincerity,transcending self-interest. I have personally taken the words “Feel empathy with heart empty andcontribute to people with sincerity” as a personal motto, and I strongly believe this is the mindset
that should be adopted by every employee involved in the Social Innovation Business as well as
the next generation of leaders who will drive that business. Empathy brings greater happinessthan self-interest. We will focus our efforts on fostering employees who see social issues as theirown, involve those around them with passion, and strive to achieve goals together.

9