Contents2	Hitachi‘s History of Transformation(From Fiscal 2006)
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To Our Shareholders

6

Our Strategy			7	Results of the 2015 Mid-termManagement Plan			8	Outline of the 2018 Mid-termManagement Plan			
1218

About Us
Segment Information			
54

Financial & Non-Financial Highlights			
56

10-Year Financial Data			
58

Operating and Financial Review			
64	Consolidated Statements ofFinancial Position			66	Consolidated Statements ofInterview with the President & CEO

Our Value Creation			
19	Creating Value for Society
Through Railways			
2350			52

Profit or Loss			67	Consolidated Statements ofComprehensive Income			68	Consolidated Statements ofChanges in Equity

Hitachi’s AI Opening a New Era			
26

Board of Directors			
69	Consolidated Statements of			28Executive Officers

Cash Flows29

Our ESG Approach			70	Summarized Consolidated
Statements of Financial Position			30

Message from Outside Directorsby Manufacturing, Services and			32Corporate Governance

Others and Financial Services			
38

Risk Management			
40

Compliance			71	Summarized Consolidated
Statements of Profit or Loss by			42	Achieving a Fair and Equitable
Work Environment / A Strategy for
Growing Together with Our Global
Human Capital

Manufacturing, Services and			44Statements of Cash Flows byOthers and Financial Services /Summarized Consolidated

Promoting Diversity and Inclusion

Manufacturing, Services and			45	Promoting Occupational Healthand Safety			
46	Respect for Human Rights
Throughout the Value Chain

Others and Financial Services			
72

Corporate Data / Stock Information			47	Engaging in Responsible Procurement			
48	Helping Resolve Environmental
Issues Toward 2050

Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-lookingstatements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or
current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify“forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materiallyfrom those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events
which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:• 	economic conditions, including consumer spending and plant and equipment investment
in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as wellas levels of demand in the major industrial sectors Hitachi serves;• 	exchange rate fluctuations of the yen against other currencies in which Hitachi makes
significant sales or in which Hitachi’s assets and liabilities are denominated, particularlyagainst the U.S. dollar and the euro;• 	uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or
long-term financing;• 	uncertainty as to general market price levels for equity securities, declines in which mayrequire Hitachi to write down equity securities that it holds;• 	fluctuations in the price of raw materials including, without limitation, petroleum andother materials, such as copper, steel, aluminum, synthetic resins, rare metals andrare-earth minerals, or shortages of materials, parts and components;• 	the possibility of cost fluctuations during the lifetime of, or cancellation of, long-term
contracts for which Hitachi uses the percentage-of-completion method to recognize
revenue from sales;• 	credit conditions of Hitachi’s customers and suppliers;• 	fluctuations in product demand and industry capacity;• 	uncertainty as to Hitachi’s ability to implement measures to reduce the potential
negative impact of fluctuations in product demand, exchange rates and/or price of raw
materials or shortages of materials, parts and components;• 	uncertainty as to Hitachi’s ability to continue to develop and market products thatincorporate new technologies on a timely and cost-effective basis and to achieve market
acceptance for such products;• 	increased commoditization of and intensifying price competition for products;• 	uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy tostrengthen its Social Innovation Business;• 	uncertainty as to the success of acquisitions of other companies, joint ventures andstrategic alliances and the possibility of incurring related expenses;• 	uncertainty as to the success of restructuring efforts to improve management efficiency bydivesting or otherwise exiting underperforming businesses and to strengthen competitiveness;• 	the potential for significant losses on Hitachi’s investments in equity-method associates
and joint ventures;• 	general socioeconomic and political conditions and the regulatory and tradeenvironment of countries where Hitachi conducts business, particularly Japan, Asia, theUnited States and Europe, including, without limitation, direct or indirect restrictions byother nations on imports and differences in commercial and business customs including,
without limitation, contract terms and conditions and labor relations;• 	uncertainty as to the success of cost structure overhaul;• 	uncertainty as to Hitachi’s ability to attract and retain skilled personnel;• 	uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights;• 	uncertainty as to the outcome of litigation, regulatory investigations and other legal
proceedings of which the Company, its subsidiaries or its equity-method associates andjoint ventures have become or may become parties;• 	the possibility of incurring expenses resulting from any defects in products or services of Hitachi;• 	the possibility of disruption of Hitachi’s operations by natural disasters such as
earthquakes and tsunamis, the spread of infectious diseases, and geopolitical and social
instability such as terrorism and conflict;• 	uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, aswell as Hitachi’s ability to protect its confidential information or that of its customers; and• 	uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee
benefit-related costs.
The factors listed above are not all-inclusive and are in addition to other factors containedin other materials published by Hitachi.

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