Hitachi Integrated Report 2022

Introduction

Whatʼs Hitachi

Looking Back on Past Mid-term Management Plans

History of Hitachi

Value Creation

Promoting Sustainable Management

Business Strategies
Business of the Hitachi Group

Sustainability

Corporate Governance

4Data

Global Business Overview

Hitachi’s History as a Corporate Citizenship with Innovation
Since its establishment, Hitachi has operated under the Mission “Contribute to society
through the development of superior, original technology and products.” In accordance withthis Mission, we have resolved issues facing society through the development of technologies
and products that support social infrastructures. The Social Innovation Business creates newvalue for society by offering a combination of the OT (operational technology), IT (informationtechnology), and products cultivated over Hitachi’s 110-year history. Through this business,
we strive to improve people’s quality of life and contribute to achieving a sustainable society.
Originally set by Hitachi founder Namihei Odaira, the Mission has been carefully passed onto generations of employees and stakeholders throughout the company’s history. The Values
reflect the Hitachi Founding Spirit, which was shaped by the achievements of our company
predecessors as they worked hard to fulfill Hitachi’s Mission. The Vision has been createdbased on the Mission and Values. It is an expression of what the Hitachi Group aims tobecome in the future as it advances to its next stage of growth. The Mission, Values, andVision are made to be shared in a simple concept: Hitachi Group Identity.

Hitachi Group Identity

Contribute to society through the development ofsuperior, original technology and products.

The mission that Hitachi
aspires to fulfill in society

The values crucial tothe Hitachi Group inaccomplishing its mission

Hitachi Founding Spirit:

Harmony, Sincerity, Pioneering Spirit

Hitachi delivers innovations that answer
society’s challenges. With our talented
team and proven experience in global
markets, we can inspire the world.

What the Hitachi Groupaims to becomein the future

History of Hitachi, Ltd.

1910

1920

Five-horsepower
induction motor

Episode1930

1940

Urban infrastructuredevelopment

1

In 1910, Namihei Odaira founded
Hitachi, Ltd. with the aspiration ofcontributing to society through thedevelopment of machine industry
in Japan by manufacturing electric Hitachi FounderSogyo Koya
Namihei Odaira(Hitachiʼs first factory)
machines on his own.
Hitachi has developed and provided numerous products while enhancing its
technological capabilities by strengthening testing and research, and the founder’saspiration to contribute to society has been steadfastly inherited by Hitachi employees.

Episode1950

Production of trains for theTokaido Shinkansen

21960

1970

Launch of operations
at the Shimane Nuclear
Power Station

Contribution to reconstruction
after the Great Kanto Earthquake

In 1923, the Great Kanto Earthquake wrought unprecedented damage
across the Tokyo metropolitan area. Although Hitachi’s Kameido
Works was partially destroyed, Namihei Odaira indicated “our top
priority is reconstruction of the Keihin area, the head of Japan.” Everyeffort was made to rebuild infrastructure by increasing the production
and supply of products necessary for the restoration of power supply
infrastructure in the Tokyo metropolitan area. The name Hitachi
became widely known throughout Japan for its technological prowessin transformer equipment and transformers.

Episode1980

Development and supply oflarge-scale computers

3

Development and supply oflarge-scale computers

In the late 1950s, Hitachi participated in the development of the MARS-1
seat reservation system for Japan National Railways (now JR Group).
The objective was to systematize seat reservations, which at the time
were done manually, enhancing convenience for users. However,development involved a variety of hardships. In 1959, we completed thecomputer that would become the central processor for this system, andin 1960, we succeeded in developing terminals for installation in stations.
The seat reservation system for limited express trains was launchedthroughout Japan and has continued to evolve to the present day.

Hitachi Integrated Report 2022Introduction

Whatʼs Hitachi

Looking Back on Past Mid-term Management Plans

History of Hitachi

1990

Value Creation

Promoting Sustainable Management

2000

Performance

Revenue

12,000

Corporate Governance

2020

4Net income attributable to Hitachi, Ltd. stockholders
1997〜
Financial crisis

5Data

Global Business Overview

Social Innovation Business

Provision of intercity express
trains to the United Kingdom,
birthplace of the railroad

Developing more advanced social
infrastructures by combining
expertise in OT, IT, and products

In 2009, Hitachi became the first Japanese manufacturer to provide
rolling stocks to the United Kingdom with the delivery of 174 train cars
(Class 395), which commenced commercial operations that same year.
In 2017, 866 train cars (Class 800) were delivered and commenced
commercial operations on intercity express trains connecting London
with destinations in northern and western UK. In 2021, Hitachi received
an order for the design, build and maintenance of next-generation
high-speed rail in the UK. This serves as a testament to the more than
20 years Hitachi has spent building its brand in the UK.

Delivered high-speed
train to theUnited Kingdom

1991〜
End of bubble economy in Japan(Billion yen)

Business of the Hitachi Group

Sustainability

2010
EpisodeDevelopment of virtualstorage technology

Business Strategies

2000〜
IT bubble implosion

Cash flows margin from operating activities
2008
Global financial

11,226.7 crisis

Adjusted operating income ratio

2011
Great East Japan Earthquake

（%）

10

10,264.6
7.2
7.1

9,000

8

6583.4600

4300

20019902000

2021 (FY)

2010

(2)

(300)

(327.6)
(600)

(900)

(483.8)(787.3)Mid-term
Management Plan2012
(FY2010–2012)

Mid-term
Management Plan2015
(FY2013–2015)

Mid-term
Management Plan2018
(FY2016–2018)

Mid-term
Management Plan
2021(FY2019–2021)