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 andtrends 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 those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based uponcurrent 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 ofthe 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 Statesand Europe, 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 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 ofraw 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 achievemarket acceptance for such products;• 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 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;

Hitachi, Ltd. Integrated Report 2017

• uncertainty as to the success of restructuring efforts to improve management
efficiency by divesting or otherwise exiting underperforming businesses and tostrengthen 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, the United States and Europe, including, without limitation, direct or indirect
restrictions by other nations on imports and differences in commercial andbusiness customs including, without limitation, contract terms and conditions andlabor relations;• uncertainty as to the success of cost structure overhaul;• uncertainty as to Hitachi’s access to, or ability to protect, certain
intellectual property;• 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 orservices 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 andsocial instability such as terrorism and conflict;• 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; 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 in other materials published by Hitachi.

Contents
02-03

Hitachi’s History of Transformation

04-07

Our Business Model

08-13

CEO Message

14-17

Strategic Focus
Moving Forward with the 2018 Mid-term Management Plan

18-27

Value Creation
Case 01 Lumada
Case 02 Robotics
Case 03 Water

28-45

Management & GovernanceIndependent Outside Directors/Directors/Executive Officers/
Corporate Governance/Risk Management/Compliance/
Messages from Independent Outside Directors

46-79

Performance
Financial
Environmental
Societal

80-81

Corporate Data / Stock Information

CASE 01

CASE 02

CASE 03

LumadaRobotics

Water

Hitachi, Ltd. Integrated Report 20171