Contents

Hitachi Integrated Report 2018
Editorial Policy
Editorial Policy

Strategy for Value Creation5

Hitachi’s Value Creation Model

6CEO Message

8

Progress of the 2018 Mid-term Management Plan

14

Expanding the Supply of Lumada Digital Solutions

18

Feature: Four Focus Business Domains

21

Power/Energy

22

Industry/Distribution/Water

24

During the preparation of the 2018 edition of this Report,
Hitachi focused on presenting our stance of enhancing
corporate value while addressing the challenges faced byour customers and society as our “Value Creation Model.”Moreover, we prioritized conveying this concept and itsbackground in the clearest manner possible through themessages from the directors and executive officers, andsuch. Likewise, we identified six goals from among theUN’s Sustainable Development Goals (SDGs) to which we
contribute through our business operations in general andfive goals to which we contribute to the achievement ofthrough our business strategies, thereby disclosing ourinitiatives for contributing to achieving the SDGs.
In preparing this Report, we relied on the International
Integrated Reporting Framework established by the International Integrated Reporting Council (IIRC) as a reference.

Urban

26

About the Cover Page

Finance/Social/Healthcare

28

Foundation for Value Creation

30

The cover page is designed in a way thatcombines Hitachi’s focus business domains
and colors that represent the five goals fromamong the 17 SDGs that Hitachi feels it canmost significantly contribute to achieving
through our business strategy.

Message from the Chief Human Resources Officer

31

Human Capital Development

33

Message from the Chief Technology Officer

35

Engaging in Responsible Procurement

37

Environment

39

Risk Management

41

Compliance48

Companies:

Management System

50

Independent Outside Director Dialogue

53

Messages from Newly Appointed Independent
Outside Directors

59

Corporate Governance

61

Results of Value Creation

68

Boundary of Data:
Social data:
Boundary of data indicated under each indicator
Environmental data: 880 companies, namely Hitachi, Ltd. and 879
consolidated subsidiaries
However, for environmental performance dataassociated with Hitachi’s business operations,
Hitachi, Ltd. and consolidated subsidiaries
whose environmental load comprises 90% of
the total (based on Hitachi calculations)
are included.
Accounting Standard: Unless otherwise noted, this report is preparedin accordance with U.S. GAAP through fiscal
2013 and with the International Financial
Reporting Standards (IFRS) from fiscal 2014.

Segment Information

69

Financial and Non-Financial Information76

Corporate Data / Stock Information

88

Boundary of Reporting
Period:April 1, 2017 to March 31, 2018(some activities detailed herein occurred
after April 2018)
Hitachi, Ltd. and its domestic
consolidated subsidiaries

Inquiries Regarding Integrated Report
JAPAN
Hitachi, Ltd.
6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8280
TEL: +81-3-3258-1111 E-mail: ir.info.hq@hitachi.com
U.S.A.
Hitachi America, Ltd.
50 Prospect Avenue, Tarrytown, NY 10591
TEL: +1-914-333-2987 E-mail: investor.info@hal.hitachi.com
U.K.
Hitachi Europe Ltd.
Whitebrook Park, Lower Cookham Road, Maidenhead, Berkshire SL6 8YA
TEL: +44-1628-585384
Investor Relations
http://www.hitachi.co.jp/IR/ (Japanese)
http://www.hitachi.com/IR-e/ (English)
Sustainability
http://www.hitachi.co.jp/sustainability/ (Japanese)
http://www.hitachi.com/sustainability/ (English)

Disclaimer Regarding Forward-looking Statements
Certain statements regarding the future of the Company set forth in this Report may constitute “forward-looking statements,” such as “plan,” “outlook,” and “strategy.”
Although forward-looking statements contained in this report are based upon what the Company has determined to be reasonable assumptions at the time of
disclosure, actual performance and other results may differ materially from those anticipated in such statements.
For the major factors regarding these differences, please see “Risk Factors” on Page 41 of this Report.

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