FOR IMMEDIATE RELEASE

Hitachi Announces Progress on 2015 Mid-term Management Plan
Tokyo, May 12, 2014 --- Hitachi, Ltd. (TSE:6501 / “Hitachi”) today announced thecurrent status of its progress on its 2015 Mid-term Management Plan; amanagement plan focused on achieving growth and corporate transformation driven
by the further promotion of Hitachi’s Social Innovation Business. A summary of key
progress points appears below:
Key Message of Today’s Announcement(1) Hitachi achieved its highest operating income in the first year of its 2015Mid-term Management Plan as a result of expanding its businesses and services
globally with the Social Innovation Business.
(2) Hitachi is continuing initiatives to deliver revenues and profits by expanding theproducts and services businesses as well as expanding the Social Innovation
Business globally.
(3) Hitachi’s global strategy will focus on expanding business in North America andChina in addition to increasing profit in Asia.
(4) Hitachi is evolving the Hitachi Smart Transformation Project to develop
cash-generating capability.
1. Progress Overview(1) FY2013 Results, FY2014 Outlook and FY2015 Targets
FY2013 Results

FY2014 Outlook9,616.2 billion yen

9,400.0 billion yen

10 trillion yen

Operating income

5.5%

6.0%

Over 7%(EBIT *1) ratio(6.0%)(5.5%)(Over 7%)264.9 billion yen

230.0 billion yen

54.86 yen

47.63 yenOver 70 yen

27.4%

28.0%

Over 30%

Revenues

Net income attributable
to Hitachi, Ltd. stockholders

FY2015 Targets

Over 350.0billion yen

Net Income attributable toHitachi, Ltd. stockholders
per share
Manufacturing, Services & Others
Total Hitachi, Ltd. stockholders’equity ratio’ equity*1

EBIT: Earnings before Interest and taxes-more--2-(2) Service revenue ratio, Overseas revenue ratio
FY2013 Result

FY2014 Outlook

FY2015 Target

Service revenue ratio(Including systems solutions)

32%

35%

Over 40%

Overseas revenue ratio

45%

47%

Over 50%(3) Achievement, Estimated effect of Hitachi Smart Transformation Project
FY2011 Results

FY2012 Results

FY2013 Results

FY2014 Outlook

FY2011-15 total

35.0 billion yen

75.0 billion yen

110.0 billion yen

90.0 billion yen

400.0 billion yen

2. 2015 Mid-term Management Plan Management Focus(1) Innovation：Strengthen service businesses that maximize theutilization of IT and bring about innovation(2) Global：Deliver innovation to customers and society globally(3) Transformation：Transform Hitachi - To deliver innovation by standardizedand speedy operation

3. Initiatives for Business Growth(1) Expand the Social Innovation Business (Continuing initiatives)“Toward true partnership with customers” by providing innovation throughproducts, IT and services
・Infrastructure Systems Group: Expand global business
Water business growth in Asia and the Middle East
・Information & Telecommunication Systems Group:
Focus on services business
Providing IT services that utilize big data, and offering energy savingsolutions for buildings
・Health Care Group: Providing solutions for the entire care cycle
Provide Particle Beam Therapy systems to treat cancer
Utilize big data to aid disease prevention & improve check-ups
・Rebuild Japanese social infrastructure with Hitachi’s innovation
Provide Hitachi’s highly-reliable Cloud service to meet increased investmentin the areas of finance sector, public sector and power sector-more-

-3-(2) Initiatives for 2015 Mid-term Management Plan (New initiatives)①Global Strategy
・Sales growth in North America and China in addition to gaining the profits inAsia
Expand businesses such as the automotive systems business in North
America and the elevator and escalator business in China
・Transformation from “globalization of operations” to “globalization ofmanagement”
Created Global CEO post in Railway systems business(from U.K., April 2014)
Created Global Service Business Promotion Officer post in Information &Telecommunication Systems business (from U.S., April 2014)
・Globalization of R&D
Leverage global resources and implement R&D globally
Increasing the number of overseas researchers:
290 (FY2013) → 400 (FY2015)②Competitive Products・Sales growth through products competitiveness and sales capabilities
including Data Storage, Medical Systems, Construction Machinery,Wind Power Generation, Inverters, Pumps and Motors, etc.
・Developing new products to meet the needs of society and customers
・Enhancing competitiveness with overseas expansion of operations andmanagement③Expansion of Service Business・Driving revenues and profits growth through product services andsolutions for customers’ issues as a service
・Improve the maintenance contract rate and expand maintenance for othercompanies’ products (elevators and escalators in China, compressors in theMiddle East)・Transform rolling stock business into a solutions business with a new
business model (IEP*1 in U.K.)*1: Intercity Express Programme

4. Promoting Transformation(1) Evolution of the Hitachi Smart Transformation Project①Establish new projects to boost operation and cash flow efficiency②Achieve further cost reductions and cash generation by looking at the entire
Business flow-more--4-③Shifting from “Function focus reform” to “Process focus reform.”(2) Leverage global talent to lead businesses
Establish the best “people and organizations” that increase a global
competitivenessIntroduced Global Human Resources Database in FY2012, Global GradingSystem in FY2013, and Global Performance Management in FY2014
5. FY2015 and beyond(1) Growth will be driven by Infrastructure Systems and Information &Telecommunication Systems(2) Steady implementation of the 2015 Mid-term Management Plan and achieve
further growthServing the World with Our Social Innovation Business
SOCIAL INNOVATION‐IT’S OUR FUTURE-more-

-5-Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” asdefined 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 andfinancial performance and include any statement that does not directly relate to any historical orcurrent 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 andare 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-lookingstatements,” 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 inHitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as
levels of demand in the major industrial sectors Hitachi serves, including, without limitation, theinformation, electronics, automotive, construction and financial sectors;•

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, particularly
against 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 may
require Hitachi to write down equity securities that it holds;•

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 forsuch products;•rapid technological innovation;•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;•fluctuations in the price of raw materials including, without limitation, petroleum and othermaterials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth
minerals, or shortages of materials, parts and components;•

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;•increased commoditization of information technology products and digital media-relatedproducts and intensifying price competition for such 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 restructuring efforts to improve management efficiency bydivesting or otherwise exiting underperforming businesses and to strengthen competitiveness;•uncertainty as to the success of cost reduction measures;•

general socioeconomic and political conditions and the regulatory and trade environment ofcountries where Hitachi conducts business, particularly Japan, Asia, the United States andEurope, including, without limitation, direct or indirect restrictions by other nations on imports
and differences in commercial and business customs including, without limitation, contract
terms and conditions and labor relations;-more-

-6-•

uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi
may not control, with other corporations in the design and development of certain keyproducts;•uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights,
particularly those related to electronics and data processing technologies;•uncertainty as to the outcome of litigation, regulatory investigations and other legal
proceedings of which the Company, its subsidiaries or its equity method affiliates havebecome or may become parties;•

the possibility of incurring expenses resulting from any defects in products or services ofHitachi;•

the potential for significant losses on Hitachi’s investments in equity method affiliates;•the possibility of disruption of Hitachi’s operations by earthquakes, tsunamis or other naturaldisasters;•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 the accuracy of key assumptions Hitachi uses to evaluate its significant
employee benefit-related costs; and•

uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

The factors listed above are not all-inclusive and are in addition to other factors contained in othermaterials published by Hitachi.

About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations thatanswer society’s challenges with our talented team and proven experience in global
markets. The company’s consolidated revenues for fiscal 2013 (ended March 31,2014) totaled 9,616 billion yen ($93.4 billion). Hitachi is focusing more than ever on
the Social Innovation Business, which includes infrastructure systems, information &telecommunication systems, power systems, construction machinery, highfunctional materials & components, automotive systems, health care and others. For
more information on Hitachi, please visit the company's website
at http://www.hitachi.com.
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Information contained in this news release is current asof the date of the press announcement, but may be subject
to change without prior notice.
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