Mid-term Management Plan 2024
April 28, 2022

Keiji Kojima
President & CEO
Hitachi, Ltd.

© Hitachi, Ltd. 2022. All rights reserved.

Mid-term Management Plan 2024
- Targets and Policies© Hitachi, Ltd. 2022. All rights reserved.

1

Mid-term Management Plan 2024 - Targets
Support people’s quality of life with data and technologythat fosters a sustainable society
GrowthPlanetary Boundaries
Protect the earth while
maintaining social
infrastructure

Wellbeing
A society where
every individual is
comfortable and active

Green
DigitalInnovation

Society

People12%

EPS*1 growth

10%-14%

Core FCF *2 (3-year cumulative)

ROIC 10%

FY2021-FY2024 CAGR

Approx. 50% of thisreturned to shareholders

Revenues growth

Adjusted EBITA Margin

FY2021-FY2024 CAGR

5%-7%

*1 Share buybacks included *2 Core FCF = Cash flows from operating activities – CAPEX

1.4 trillion yen© Hitachi, Ltd. 2022. All rights reserved.

2

Towards a Sustainable Society
Provide value to customers and society through the enhancement of human capital
Planetary Boundaries

Value tocustomers
and society

Enhancement of
human capital

Green
DigitalInnovation

Wellbeing

Environment

Resilience

Safety& Security

Decarbonization,
Resource circulation

Maintainsocial infrastructure

Safe and comfortablemobility

CO2 reduction of
approx. 100 million tons/year

Harmonious
Coexistence ofPeople and Nature

Decarbonization,
Circular Economy
FY2050 carbon neutral

DE&I: Diversity, Equity & Inclusion

GrowthStable energy supply toapprox. 1.9 billion people

Railway service toapprox. 15 billion people/year

Healthcare
Extend healthy
life expectancy

In vitro diagnostics on humanblood samples 20 billion tests/year

DE ＆ I

Integrity inManagement

Enhancing
Quality of Life

Power of diversity

Ethics and human rights

Employee engagement

Diversity in key management
positionsImprove health and safety, quality
and compliance

Improve engagement throughmore flexible ways of working© Hitachi, Ltd. 2022. All rights reserved.

3

Hitachi’s Social Innovation Business
GrowthPlanetary Boundaries

Wellbeing

Green
DigitalInnovation

Customer (Power, Transport)

Customer (Financial, Public Services)

Customer (Industry, Urban)

Customer (Vehicle)

Green Energy & Mobility

Digital Systems & Services

Connective Industries

Hitachi Astemo

Support the energy shift for
decarbonization and provide safe,
comfortable, and clean mobility

With cutting-edge CPS, improve theefficiency of systems which underpin
society

Create a resilient supply chain andinnovate industries and cities

Contribute to electrification
and autonomous driving ofvehiclesEnergyRail

Number of employees 58,000
CPS：Cyber Physical System

Front businessIT services

Urban

Industries

Services & platforms

Advanced technologies

Number of employees 97,000

Number of employees 82,000

Number of employees is not including number of corporate and other employees (approx. 16,000)

Automotive
components (EV)

Number of
employees 64,000© Hitachi, Ltd. 2022. All rights reserved.

4

Target Financial Indicators (FY2024)
Revenue 10 trillion yen CAGR 5-7%

Revenues

Adjusted EBITA Margin 12%

ROIC 10%

Green Energy& Mobility

Digital Systems& Services

Connective
Industries

Hitachi Astemo

2.6

2.6

3.2

2.0

trillion yen

trillion yen

trillion yen

trillion yen

CAGR 8％CAGR 7％

CAGR 5％

CAGR 8％Adj. EBITA*1
Margin

10%

15%

13%

9%

ROIC*2

8%

10%

13%

11%

*1 Use Adj. EBITA as an indicator for management focusing on cash flow. Adj. EBITA: Adjusted EBITA*2 Invested capital in ROIC of each sector is based on business assets.

© Hitachi, Ltd. 2022. All rights reserved.

5

Hitachi’s Growth Strategy© Hitachi, Ltd. 2022. All rights reserved.

6

Strengthen our Business Portfolio
Continue to strengthen our digital and green portfolio, centered on Lumada
Hitachi GroupFY2021*1

IT/OT/Products business

Revenues

Adj. EBITA

Revenues

Adj. EBITA

Revenues

Adj. EBITA

8.3

0.7

1.4

0.2

6.9

0.5

trillion yen

trillion yen

Grow by Digital, Green, andInnovation as the drivers

FY2024

Lumada business10

trillion yen
CAGR 6%

1.2

trillion yen

Margin 12%*2trillion yen

trillion yen

Expand through aggressive
growth investments

2.7

trillion yen

CAGR 24%

0.4

trillion yen

Margin 16%*1 FY2021 Listed subsidiaries excluded. *2 Lumada business revenues in FY2021 1.6 trillion yen, including listed subsidiaries

trillion yen

trillion yen

Constant portfoliotransformation(Adj. EBITA 10+%, ROIC 10+% in all businesses)

7.3

trillion yen

CAGR 2%

0.8

trillion yen

Margin 11%© Hitachi, Ltd. 2022. All rights reserved.

7

Increase Profitability of Social Innovation Business with Lumada
Lumada accelerates the growth model, which is the data-driven cycle of value co-creation with customers,
and increases revenue across the entire cycle
Lumada revenue 1.4 trillion yen→2.7 trillion yen (FY2021→2024) CAGR 24%, Adjusted EBITA 16%(FY2024)(trillion yen)

3.0

2.7 trillion yen

Lumada revenue

CAGR 24%

Managed services
Revenue 0.9 trillion yen, Adj. EBITA 16% (FY2024)

MAINTAINManagedservices

1.0

1.4 trillion yen

0

PLAN

Understand the customers’
management challenges

Design Thinking
Develop solutions with
IT/OT/Products

Operate, maintain andassess for the next step
AI tools/Methodologies/Use Cases/Solutions

Digitalengineering

Remote/Automation

Systemintegration
Lumadarelated*business

Revenue 0.3 trillion yen, Adj. EBITA 21% (FY2024)

Predictive Maintenance

2.0

Lumadacore*
business

Digital engineering

OPERATE

Connected
products

Digital Twin
Implement
solutions

Revenue 0.9 trillion yen, Adj. EBITA 15% (FY2024)

FY2021

FY2024

Connected products* Illustrative image of the relationship between previous and new categories

BUILD

Revenue 0.6 trillion yen, Adj. EBITA 14% (FY2024)

System integration© Hitachi, Ltd. 2022. All rights reserved.

8

Example of Lumada Business (manufacturing process innovation)
Transform the customer’s business process with connected products and solutions
that visualize and analyze data from the production line to the entire value chain
Reducing maintenance costby "remote monitoring and predictive maintenance"
Understand the customers’
management challenges

MAINTAIN

Predictive MaintenanceOperate, maintain andassess for the next step

AI tools/Methodologies/Use Cases/Solutions

OPERATE* Hitachi’s Digital Twin for production site

Develop solutions with
IT/OT/Products
Digital Twin

Implement
solutions

Visualization and analysis ofproduction facilities by “IoT Compass*”
Automobile

PLAN
Design Thinking

Remote/Automation

Scaling

Optimizing manufacturing processby "Design Thinking"

BUILD
Implementation of manufacturing processsolution by "Robotics SI"

Pharmaceutical, Manufacturer

Supply chain, Logistics© Hitachi, Ltd. 2022. All rights reserved.

9

Example of Lumada Business (asset management innovation)
Accelerate transformation into an End to End business starting from the management challenges of customers
Grow the business by expanding the target from power utilities to large-scale facilities in other industries
Providing condition-based services
by using “APM modeling”

Optimizing facilities costby "Design Thinking"
Understand the customers’
management challenges

MAINTAIN

Predictive MaintenanceOperate, maintain andassess for the next step

Design Thinking

AI tools/Methodologies/Use Cases/Solutions

Remote/Automation

Develop solutions with
IT/OT/Products
Digital Twin

Implement
solutions

OPERATE

Remote and automatic inspection of facilities using"AI image diagnostics"

Scaling

PLAN

Power utilities

APM: Asset Performance Management AI: Artificial Intelligence

Railways

BUILD
Implementation of facilities diagnosis andmanagement systems by "Digital Twin"
Buildings, Data centers© Hitachi, Ltd. 2022. All rights reserved.

10Digital Systems & Services

Sector Business Strategy

Lead the growth of the entire Hitachi Group as a source of advanced digital technologies

Revenue (trillion yen)

CAGR 7%

Adj. EBITA ratio 15%

3

2.6

2.2

ROIC 10%
Overseas revenue ratio*
36% (FY2024)

Services & platforms

２

1

Lumada business plan

IT services
2.60

Front business(Finance, Social)

FY2021

FY2024

Lumada revenue (trillion yen)

Business plan

CAGR 22%1.0

NAEuropeJapan⚫Cloud managed services
NA

Japan

⚫Financial digital services
Japan

Asia

NA

* Elimination of intracompany transactions excluded
MMP: Mid-term Management Plan

Managed services

0.6
0.5

Digital engineering
System integration0

Focus business domains⚫Digital engineering

1.2

FY2021

FY2024

Priority measures
GlobalLogic revenue (Unit: M$)⚫DX market:
Global $2,500 billion (2024), CAGR 17%

Growth of GlobalLogic⚫Cloud/storage market:
Global $200 billion (2024), CAGR 17%

R&D investment (3-year cumulative):
160 (MMP2021)->210 (MMP2024) billion yen⚫ Grow by digital engineering capabilities of
GlobalLogic and Hitachi’s customer base
⚫ Digitalize core products and SI businessand transform them to Lumada business⚫ Strengthen domestic business by
establishing GlobalLogic Japan

Source: Hitachi analysis based on industry reports

NA: North America⚫Embedded finance market:
Global $200 billion (2025), CAGR 55%

CAGR 30%(Standalone 21%)580

Synergyand M&A

1,280

2,250 Standalone

FY2021

FY2024© Hitachi, Ltd. 2022. All rights reserved.

11

Green Energy & Mobility

Sector Business Strategy

Leverage the world's top products and the trend toward electrification to grow as the core of green transformation business

Revenue (trillion yen)

CAGR 8%Lumada business plan

Adj. EBITA ratio 10%

3

2.1

２

ROIC 8%Overseas revenue ratio*1
83% (FY2024)

2.6
Rail

1

Energy0

FY2021

FY2024Focus business domains⚫ Stabilize renewable energy
supply, EFaaS, CNaaS
NA

Europe⚫ Rail managed services
EuropeJapan⚫ MaaS
EuropeNA

Japan⚫Grid automation market*2:

Global $30 billion (FY2024), CAGR 9%⚫Rail market (Vehicle, Signaling, Services):
Global 7 trillion yen (FY2025), CAGR 3%⚫MaaS market:

Global 26 trillion yen (FY2024), CAGR 21%
R&D investment (3-year cumulative):
110 (MMP2021)->210 (MMP2024) billion yen

Lumada revenue (trillion yen)

Business plan

CAGR 16%0.5

0.34
Managed services

0.2

System integration
Connected products
0

FY2021

FY2024

Priority measures
Growth of Hitachi Energy

Hitachi Energy revenue (Unit: M$)⚫ Improve asset efficiency and cash
generation capabilities in transformers andhigh voltage products businesses⚫ In collaboration with GlobalLogic andHitachi Vantara, expand power asset
managed services and EV charging
solutions*1 Elimination of intracompany transactions excluded *2 Grid automation market: Automation & Communication, Network control, Asset management, Microgrid, Battery Energy Storage System
EFaaS: Energy & Facility Management as a Service CNaaS: Carbon Neutral as a Service MaaS: Mobility as a Service Source: Hitachi analysis based on industry reports

CAGR 4.7%

9,571

FY2021

11,000

FY2024© Hitachi, Ltd. 2022. All rights reserved.

12Connective Industries

Sector Business Strategy

Grow by a recurring revenue model with our strong, connected medium-to-mass volume products

Revenue (trillion yen)

CAGR 5%

Lumada business plan

Adj. EBITA ratio 13%

2.8

3

3.2

ROIC 13%
Overseas revenue ratio*1
51% (FY2024)

Urban
２
Industries

1

Advanced technologies
0

FY2021

FY2024Focus business domains
NA

Europe⚫Energy/Facility management
NA

Japan

⚫Green, Smart factory market:
NA $10 billion (CAGR7%)
Japan $13 billion (CAGR9%)

R&D investment (3-year cumulative):
250 (MMP2021)->300 (MMP2024) billion yen*1 Elimination of intracompany transactions excluded *2 IDBU : Industrial digital BU

CAGR 29%

1.1
Managed services

1.0

0.5

System integration

0.5

Connected products
0

FY2021

FY2024

Priority measures⚫Discrete industries (FA,automobile) market:
Global 160 trillion yen (CAGR15%)⚫Robotics SI

Lumada revenue (trillion yen)

Business plan

Revenue in North America(Unit: billions of yen)

Growth in North America business⚫ Expand robotics SI business by JR Automation⚫ Expand connected products business

Strengthen recurring business⚫ Expand digital solutions by using
domain knowledge for products and OT

Source: Hitachi analysis based on industry reports

CAGR 22%

381.8
35.2

Other

120.2

Hitachi High-Tech

7.3
88.8

55.2

Sullair and others

41.2

171.2

IDBU*2211

73.7
FY2021

FY2024© Hitachi, Ltd. 2022. All rights reserved.

13

Value Creation in Green
Lead decarbonization globally with Hitachi Energy to foster a sustainable society
FY2024 Target Contribution to CO2 reduction: Approx. 100 million tons/year (Equivalent monetary value*2: Approx. 1.1 trillion yen)

Customers

T&D Non-fossil energy Oil

Gas

Transport

Automobile(car/motorcycle)

Building Industry

Logistics

lifecycle CO2 avoided
emission in annual
products shipped *1(equivalent monetary
value breakdown)*2

Approx. 89 million tons
(Approx. 980 billion yen)

Approx. 6.5 million tons
(Approx. 72 billion yen)

Approx. 7.2 million tons
(Approx. 80 billion yen)

Value provided

Energy Transition

Electrification

Energy Savings

Green Energy & Mobility

Hitachi Astemo

Connective
Industries

Digital Systems& Services

xEV components(EV motor)(EV inverter)

Logistics(Ecosystem services
connected by CPS)

Visualization of energy
management(EcoAssist)

Sector focus
business
Carbon-free solution(HVDC systems)

Carbon-free mobility(Battery-powered tram)

R&D investment 200 billion yen*1 Base year FY2013
value

R&D investment
300 billion yen*2 Estimate carbon price as 11,000 yen per ton-CO2 and convert CO2 avoided emission by decarbonization solution into monetary© Hitachi, Ltd. 2022. All rights reserved.

14

Advanced Investments in Innovation to Achieve Growth in the 2030s
Strengthen investments to create disruptive innovation by back-casting from 2050
Cumulative investment(for 3 years)

Investment in advanced research: 100 billion yen, CV investment: 50 billion yen
Overcoming intractable*1: Market size (2030) 2 trillion yen
diseases, infectious*2: Market size (2040) 5 trillion yen
diseases and cancer

Data economy
Market size (2035)
Computing innovation 70 trillion yen

Energy storage & supply

Minimally invasive cancer treatments*1

Ultra big data management

Target: Commercialization of
100MW class water electrolysis (2030)
Ecosystem: HORIZON Europe Research PJ

Target: Irradiation dose ratio 5 times (2024)

Target: 100+ times higher performanceof data extraction than before (2024)
Ecosystem: University of Tokyo

Decarbonized society
Carbon negative

Market size (2030)
7 trillion yen

Ecosystem: Osaka University, Gunma University

Treatment room

Tracking global
carbon emissions
GB/sec real time Solve social issues byprocessing
data-driven approach

Personalized
medical care
Analysis of
exabyte data

High-precision particle therapy system

Big data value co-creation platform (University of Tokyo)

Direct air capture

Design cell*2

Silicon quantum computer

Target: Verification of solar chemical systems (2024)

Target: Design cell development platform (2024)

Target: Megabit-class quantum computer (2030)

High voltage water electrolysis stack(achieve solar-energy conversion efficiency exceeding that of plants)

Ecosystem: Imperial College London

Artificial
photosynthetic cell

Ecosystem: KBIC, Overseas Universities

Ecosystem: Moonshot, QII, Q-STAR

High-throughput gene design & evaluation system of cell function

QII: Quantum Innovation Initiative Consortium, Q-STAR: Quantum STrategic industry Alliance for Revolution, KBIC: Kobe Biomedical Innovation Cluster

Siliconquantum chip

© Hitachi, Ltd. 2022. All rights reserved.

15

Generating Cash for Growth and Returns© Hitachi, Ltd. 2022. All rights reserved.

16

Cash Generation and Capital Allocation
Organically expand core FCF and combine with sell-off of assets
to balance allocation into growth and shareholder returns

Cash generation
Shareholder returns:
Shareholder returns:

0.3 trillion yen

2.1 trillion yen
Shareholder returns:

0.2 trillion yen

1.2 trillion yen

Core FCF

0.5 trillion yen
MMP2018(3-year cumulative)

While keeping D/E ratio of around 0.5x
in mind, use debt flexibly as required

2.3 trillion yen
Strengthen strategic growth areas by asset
replacement

Asset sales

0.9 trillion yen
Growthinvestments

Asset sales

1.2 trillion yen

Asset sales

0.7 trillion yen

Approx. 0.7 trillion yen

Capital allocation

Core FCF

Core FCF

1.4 trillion yen

Investment criteria⚫Profitability: Adj. EBITA 10+％
⚫Asset efficiency: ROIC 10+％Return approximately 50% of core FCF
to shareholders

Return toshareholders ⚫Dividends: Stable dividends based on business growth

0.9 trillion yen
MMP2021(3-year cumulative)⚫Focus on Digital, Green, and Innovation

MMP2024(3-year cumulative)⚫Share buyback: Implement based on funding
demands and business environment, etc.

© Hitachi, Ltd. 2022. All rights reserved.

17

Growth of EPS and CFPS
Introduce CFPS as a financial indicator and realize cash growth exceeding growth in revenues and profits

EPS Growth

CAGR
14%

CFPS* Growth

CAGR
20%

CAGR
13%
CAGR
18%

EPS
EPS
EPS
281 yen

404 yen

MMP2018
MMP2021(3-year average) (3-year average)*CFPS: Core FCF per share

600 yen

CFPS
CFPS
179 yen

MMP2024(3-year average)

CFPS
500 yen291 yen

MMP2018
MMP2021(3-year average) (3-year average)

MMP2024(3-year average)© Hitachi, Ltd. 2022. All rights reserved.

18

Advancing Sustainable Management© Hitachi, Ltd. 2022. All rights reserved.

19Internal Green Initiatives
Execute the plan toward CN targets in FY2030 , and FY2050*1

FY2024 Target*2

CO2 emissions: 50%*3 reduction, Investment in energy savings and RE facilities (3-year cumulative): 37 billion yen

Realize decarbonization portfolio

Optimize decarbonization schemes⚫ Minimize clean energy procurement risk throughenergy savings and expansion of on-site RE generation⚫ In-house demonstration of solutions for different typesof energy consumption

CO2 emissions (ton-CO2)

2,500,000

CO2 reduction roadmap (as of Mar. 2022)

サステナブル経営

2,000,000
1,500,000
1,000,000
500,000
0

FY2024
Target 50%

Remaining CO2

Target50%+

Mass-consumption type

Energysaving + RE
generation
33％

・Energy savings in IT/
improve HVAC
・RE self consumption

Multiple site type
Factory (Astemo)

Area intensive type3areas in Ibaraki

・Renew inefficient equipment
・Facility management BPO
・RE self consumption

・Use as energy center
・Asset share・Facility management
BPO
HitachiRE purchase
31％
FY2027
Target 80%●

Rinkai Factory

Hitachinaka
Yokohama Office●

Atsugi Site

RE certificate
26％

Omika Works

Tsuchiura●
Naka Site

Credit 10%2010 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Okayama Data Center*1 2030: target for scope 1 and 2, *2 2050: target for scope 3, *3 50% reduction: base year FY2010, RE: Renewable Energy,
CN: Carbon Neutral
BPO: Business Process Outsourcing

Sawa Site

Mito Works© Hitachi, Ltd. 2022. All rights reserved.

20

Growth through the Digital Management Platform
Using digital technologies, innovate management platforms, and improve speed, flexibility, and transparency⚫ Using digital technologies, transform into a management platform that demonstrates global growth(3-year cumulative investments: 80 billion yen)

⚫ Cost optimization through standardization and aggregation of operations

Impact of key initiatives

Key initiatives(billions of yen)

ERP PRJ

Share management data in real timeDX

Automate operations andachieve predictive management

One Hitachi
CRM

Strategic salesforce based on
global account information

GBS

Optimized SG&A by aggregating
operations

1,600
160
120
1,200
80
800
400
40
0

FY2022

FY2023

FY2024

Benefits from DX and GBS from FY2022, Common ERP from FY2024

Globally share ERP and GBS using
Hitachi Energy as a starting point

Support the execution and acceleration of growth strategies by sharing
management information and by automating and aggregating operations
ERP: Enterprise Resource Planning CRM: Customer Relationship Management
GBS: Global Business Services SG&A: Selling, General and Administrative Expenses© Hitachi, Ltd. 2022. All rights reserved.

21

Global Risk Management
Major risks and responses assumed during MMP 2024 period
Aggregate risk information at the head office to strengthen corporate governance
Risk

Content

Response

Economy⚫ Global economic slowdown⚫ Japan’s economic downturn due to the impact of the weak yen⚫ Inflation and rising interest rates⚫ Strengthen risk-return monitoring of investment projects⚫ Reduce working capital

Supply chain⚫ Increase in material prices, procurement challenges⚫ Shortage and limitations in energy supplies⚫ Strategic reserve of materials, transfer to selling price⚫ Diversify suppliers

Geopolitics⚫ Prolongation of conflict between Ukraine and Russia⚫ Spread and increased frequency of international conflicts⚫ Assess risk to staff and operations in Ukraine and in
Russia⚫ Transfer risk assets in the country concerned

Environment⚫ Intensification of regulations beyond assumptions⚫ Internal carbon pricing

Technology⚫ Difficulty in acquiring digital talent⚫ Cyber attack⚫ Accelerate skills shift through training⚫ Zero Trust and other security enhancements⚫ Prolonged COVID-19⚫ Large-scale earthquake⚫ Continuous work style reform⚫ BCP development

Pandemic
Natural disasters
BCP: Business Continuity Plan

© Hitachi, Ltd. 2022. All rights reserved.

22

Global Talent Management
Strengthen acquisition and development of digital talent which is key for growth
Contribute to a sustainable society and business growth through DE & I improvement
Acquire and develop
digital talent

Strengthen
employee engagement

Strengthen
Diversity, Equity & Inclusion⚫ Increase digital talent, mainly
overseas, to 98,000⚫ Create a culture where each employee
engages with solving societal challenges
as his/her own problems⚫ Enhance co-creation and productivity
through inclusion of diverse talent(%)

98,000

Units: head count

100,000
80,000Japan

Overseas

67,00060,00040,00020,00080

59,00038,000

Japan

100

62.8

Digital talent

68.0

Units: head count12

Female

Head
count

%

NonJapanese

Head
count

%

8

10.0%

39,000

15％

15.0%
11

16%

11

12%

11.4%
8

6.4%

40
20

77.0

56.2

80.0

60.0 82.0

4

8%

7

5

4%

2.6%
2

0
FY2021

65.0

Global60

58.1

29,000Overseas

FY20240

0FY2018FY2021

FY2024Engagement score

0%

FY20182021/4FY2024

Diversity in gender and nationality
among executive and corporate officers© Hitachi, Ltd. 2022. All rights reserved.

23

Conclusion© Hitachi, Ltd. 2022. All rights reserved.

24

Grow globallyby Digital, Green, and Innovation

Advancingsustainable
management

Increase profitability
by Lumada

Cash generation
andreturns

Global risk
management© Hitachi, Ltd. 2022. All rights reserved.

25

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-looking statements” 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 whichindicate 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 materially from thoseprojected 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 report.
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:◼ exacerbation of social and economic impacts of the spread of COVID-19;◼ economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major markets, as well as 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;◼ 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 may require Hitachi to write down equity securities that it holds;◼ fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components;◼ estimates, fluctuations in cost and cancellation of long-term projects for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;◼ increased commoditization of and intensifying price competition for products;◼ uncertainty as to Hitachi’s ability to attract and retain skilled personnel;◼ uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance for such products;◼ fluctuations in demand of products, etc. and industry capacity;◼ uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in demand of products, etc., exchange rates and/or price of raw materials or shortages of materials, parts and components;◼ credit conditions of Hitachi’s customers and suppliers;◼ uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;◼ uncertainty as to the success of acquisitions of other companies, joint ventures and strategic alliances and the possibility of incurring related expenses;◼ uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness;◼ general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United 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;◼ the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures;◼ uncertainty as to the success of cost structure overhaul;◼ 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 the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity-method associates and joint ventures have become or may become parties;◼ the possibility of incurring expenses resulting from any defects in products or services of Hitachi;◼ uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information or that of its customers;◼ uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property; 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 contained elsewhere in this report and in other materials published by Hitachi.

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