OUR BUSINESS MODELOUR FOUNDATION
Hitachi’s business is supported by shared company values that have stood the testof time and by collaborative creation with its stakeholders.

46–79

PERFORMANCE

Ready to Engage in Collaborative Creation
Revenues*1

9,162.2

Net income attributable to Hitachi, Ltd.
stockholders*1
billion yen

R&D expenditures*1

323.9

231.2

billion yen

Number of patents owned*3

billion yen

Consolidated number of employees*2

303,887

93,992Business locations in68

Total assets*2

9,663.9

Open innovation (research collaboration)
partners*465 research institutes outside Japan
243 research institutes in Japan
Instilling of the Hitachi Group Identity
in employees

countries and regions*578.8%*1 Fiscal 2016 figures.
*2 Numbers as of the end of March 2017.
*3 Number of patents owned in Japan, the United States, China, Germany, and South Korea as of the end of December 2016.
*4 Open innovation is Hitachi s attempt to go beyond organizational frameworks and create broadly shared bodies of knowledge and technology toward
the development of new technologies and products. These figures are for industrial-academic R&D partnerships, as of fiscal 2016.
*5 Hitachi, Ltd. and consolidated subsidiary business locations (as of the end of March 2017).

Hitachi Group Identity
Throughout its 100 year history, the Hitachi Group has passed on its Mission and its Values to generations ofemployees and external stakeholders.
The Vision has been created based on the Mission and the Values.
It is an expression of what the Hitachi Group aims to become in the future.

4Hitachi, Ltd. Integrated Report 2017

billion yen

OUR STRATEGYAn Innovation Partner for the IoT Era
Under the 2018 Mid-term Management Plan, Hitachi will accelerate collaborative
creation with customers and partners through the advanced Social Innovation
Business, with a focus on the trend toward digitalization that is significantly changing
society and industry. Leveraging three strengths—the operational technology wehave amassed since our founding, IT, and products/systems—we deliver innovations
to society and customers.

14–17

STRATEGIC FOCUS

Four Focus Business Domains

Growth Strategies and Investments

Front
Power/Energy

Industry/Distribution/Water

Nuclear Energy
Power
Energy Solutions

Industry & Distribution
WaterUrban

Building Systems
Railway Systems
Urban Solutions

Finance/Public/HealthcareFinance Systems
Government, Public
Corporation & Social
Infrastructure
Healthcare
Defense Systems

Platform

IoT Platform

Products
Social Infrastructure & Industrial Systems

Industrial Products

5Automotive Systems

Hitachi Automotive Systems, Ltd.
Clarion Co., Ltd.

Electronic Systems & Equipment

Construction Machinery

Hitachi High-Technologies Corporation
Hitachi Kokusai Electric Inc.

Hitachi Construction Machinery Co., Ltd.

Smart Life & Ecofriendly Systems

Hitachi Appliances, Inc.
Hitachi Consumer Marketing, Inc.

High Functional Materials & Components

Hitachi Metals, Ltd.
Hitachi Chemical Company, Ltd.

OUR VALUE CREATION
Creating value to fulfill our Mission—contributing to society through the developmentof superior, original technology and products—has underpinned our businessdevelopment for more than a century. Hitachi’s R&D program focuses on products
and services that help to resolve social issues.

18–27

VALUE CREATIONKey Business Segments for Social Contributions
Information & Telecommunication Systems
Hitachi provides IT services that address customers’ diverse needs by combining Hitachi’sextensive expertise in a diverse range of business fields, including financial services, withadvanced information technology. Our services cover the entire life cycle of systems, ranging fromconsulting to system integration, operation, maintenance, and other support.

To help resolve issues confronting society and our customers, we provide IT solutions to support datautilization on a global basis.
A storage system

Locations of our business operations:

Over

100

countries and regions

Social Infrastructure & Industrial Systems
Hitachi has a long and proven track record of high reliability in supporting people’s daily lives
through such products and services as rolling stock and train management systems, power plants
and transmission and distribution systems, elevators and escalators, and water solutions. It alsooffers industrial solutions and equipment to enhance the sophistication of production facilities.
Hitachi utilizes digital technologies to provide optimum solutions in addressing the issues anddiversifying needs of customers worldwide.
Through our OT (operational technology) and IT, Hitachi offers comprehensive water solutions on
a global scale, such as seawater desalination equipment, monitoring and control systems, design andconstruction of water treatment plants, and operation and maintenance of plants.
A seawater desalination system

Installation of water solutions:

1,800

sites

Electronic Systems & Equipment
Drawing on the Hitachi Group’s advanced technologies, Hitachi provides systems supporting theinformation society, including semiconductor manufacturing equipment, measurement and analysis
equipment, broadcasting and video systems, and healthcare solutions that support healthy lifestyles.

Particle therapy mitigates the burden on the body and allows patients to maintain their qualityof life, and it is expected to make its mark in pediatric oncology, which entails great physical strain.
The global share of Hitachi’s highly reliable particle therapy system has been rising.
Hokkaido University Hospital’s particle beamcancer therapy system

Number of operating particle therapy facilities:

3 in Japan, 4 in the United States(as of June 30, 2017)

6Construction Machinery
Leveraging decades of technological expertise and know-how, Hitachi offers solutions that address
the needs of a broad range of industries, including civil engineering and construction, building andstructural demolition, and mining and excavation. Hitachi also handles the sale, servicing, andmaintenance of hydraulic excavators and other construction machinery to provide integrated
solutions globally.
Hitachi Construction Machinery’s hydraulic excavators, wheel loaders, and dump trucks are used atconstruction sites and mines around the world.

Hitachi Construction Machinery’s ultralarge
hydraulic excavator and mining dump truck

Global share of hydraulic mining excavator market:

Approximately

30%

High Functional Materials & Components
Hitachi draws on its wealth of technological expertise and know-how to provide a variety of materials
and components—such as semiconductor- and display-related materials, synthetic resin products,specialty steels, magnetic materials, casting components, and wires and cables—that enableadvanced functions in products for such sectors as autos, IT and consumer electronics, and industrial
and social infrastructure. Business operations are focused in Asia, North America, and Europe.
Hitachi Chemical’s molded plastic rear door module achieves a substantial reduction inweight compared to conventional steel products. Japan’s first plastic rear door module(according to Hitachi Chemical findings) has been made into reality, taking advantage ofresin’s superior workability to enable designs not possible with steel without sacrificing
rigidity and strength.
Hitachi Chemical’s molded plastic rear door module

Weight of molded plastic rear door module:

30% reduction(compared to steel)Automotive Systems
To contribute to the realization of an affluent society by creating new value-added systems,
products, and services through the harmonization of people, vehicles, and society, Hitachi isaccelerating its technological development in the fields of environment and safety. We will further
develop our Advanced Vehicle Control System, integrating our safety and information technologies
with the Hitachi Group’s social infrastructure services to meet society’s needs for environmental
conservation, accident elimination, and traffic congestion reduction.
Hitachi Automotive Systems’ air flow sensor is widely used by automakers around the world andcommands the highest global share. It accurately measures the volume and temperature of the air
intake and contributes to a more efficient engine.
Hitachi Automotive Systems’ air flow sensor

Global share of air flow sensor market:

Approximately40%(as of March 31, 2016)

Smart Life & Ecofriendly Systems
Hitachi’s home appliances, lighting and housing equipment, and refrigerating and air-conditioning
solutions deliver new value and lifestyle innovations to society and people around the world.
Hitachi also helps reduce environmental impact by making an ongoing effort to improve products’energy efficiency.

Hitachi Appliances markets various home appliances products in over 120 countries and regions. By
providing home appliances in accordance with each country’s and region’s needs, we continue tocontribute to improving quality of life.
Hitachi Appliances’ robot cleaner “minimaru”

Home appliance products:

Sold in Over120countries and regions

Note: We conduct a broad range of business activities from product development to production, sales, and servicing in eight segments in all, including “Others,” in addition to the above.
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