Introduction
Materiality

Value Creation

Mid-term Management Plan 2024

Business Strategies

Transformation

Corporate Initiatives for Sustainability Growth

Financial Strategy

Human Resources Strategy

Governance
CFO Message

Hitachi Integrated Report 2023

DataSector Strategies

Human Resources Strategy

Human Resources Strategy (Sustainability Report)

Hitachi believes that human capital is the source of value and aims to provide customers and society with value and contribute to the realization of a sustainable society by harnessing the power ofemployees. In the Mid-term Management Plan 2024, we have set KPIs linked to management strategyand have implemented each initiative. Specifically, we have set three goals, namely, digitaltalent acquisition and development, the increased ratio of female and non-Japanese executives and corporate officers, and improvement of employee engagement, as the main human capital KPIs.

Digital talentJapan

Ratio of female and non-Japanese executives andcorporate officers (Hitachi, Ltd.)

Non-JapanFemale(Employees)

100,000

97,000*1

20.3

2067,00059,00041,000

16
12.9
11.4

38,0005

20,00029,00042,00038,000

FY2022

FY20240Japan(Employees)

1515

10
40,00020+83,000

80,00060,000Non-Japanese(%)

8*1 Excluding Hitachi Astemo

Digital Talent Acquisition and Development
The enhancement of digital talent is progressing well.
Outside Japan, we are increasing the ranks of digital talent,primarily at GlobalLogic and Hitachi Vantara. And at GlobalLogic
in particular, we are working to enhance the acquisition ofhuman capital through M&As and recruitment in India where
there are many digital talents, in addition to fostering young
talents through short-term intensive training.
At the same time, in Japan, we are enhancing digital talent mainly
by developing internal human capital. For example, the Hitachi
Academy is offering approximately 130 courses by skill and level,
including digital literacy e-learning to acquire basic knowledge
and digital transformation (DX) training to develop the basic
human capital able to play an active role as project membersof digital businesses. In addition to the reciprocal dispatch ofengineers with GlobalLogic, we have begun offering programs
that incorporate the company’s educational methods.

Non-Japan

9FY2021

83.3

82.3

2080

1570

1060

80.0
71.0

69.5
65.0
61.2

62.756.29FY2022*2*2 Includes personnel changes effective April 1, 2023

Total(%)

11.40
FY2021

Employee engagement (Positive response rate)

550

00

FY2024*3*3 Includes personnel changes effective April 1, 2025

FY2021

FY2022

FY2024*4*4 We raised our fiscal 2024 target as we achieved the previous target ahead of schedule in fiscal 2022.

Improvement of Employee Engagement
As of fiscal 2022, we were able to achieve our target for the positive response rate to questions about employee
engagement in employee surveys ahead of schedule.
By visualizing the survey results as numerical values, we areworking to make improvements at each workplace so that the opinions of employees can be reflected. We will aim for aneven higher engagement level by accelerating a growth mindset with One Hitachi, including promoting PMI with Hitachi
Energy and GlobalLogic.

Initiatives of the Power Grids Business Unit
To accelerate synergy generation between Hitachi Energy, which was acquired from ABB, and the existing domestic power grids
business, we are promoting exchanges of key personnel from both sides and holding roundtables among potential leaders ineach country and region and the CEO of each business unit in the energy sector for talent exchanges across businesses.
In Japan, we have established project teams to promote business reforms and create opportunities for proactive proposals andactivities.

Initiatives of the Railway Systems Business Unit
In the Railway Systems Business Unit, which has a diverse workforce of 15,000 employees of about 80 nationalities in about 40
countries around the world, we encourage employees, including those whose native language is English, to use simple English.
In addition, we offer programs such as a common global onboarding program and e-learning to foster an inclusive culture.

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Introduction
Materiality

Mid-term Management Plan 2024

Value Creation

Transformation

Corporate Initiatives for Sustainability Growth

Global Infiltration of Hitachi Culture
As a result of promoting diversity, equity and inclusion(DEI), talent acquired through global M&As is progressively
becoming more active. Due to the inclusion of diverse
human capital, we understand the issues faced by our global
customers and this leads to stronger innovation.
By sharing Hitachi’s Mission and Values (founding spirit) withapproximately 100,000 employees who have been newly
added through multiple cases of M&A in recent years, we areworking to foster a culture of One Hitachi. To do this, in fiscal
2022, CEOs and other executives and corporate officers inJapan and overseas held 277 town hall meetings to talk with
employees.

In-house idea contest “Make a Difference!”
To strengthen the “I will!” mindset, we have been holding an
employee-suggested idea contest since fiscal 2015. Expanding
applicants from all group companies worldwide include many
participants from Hitachi Energy and GlobalLogic.
In fiscal 2022, members of Hitachi Energy received the GoldTicket, the highest award, for a new business proposal with a“green” theme.

Business Strategies

Human Resources Strategy

Financial Strategy

Collaboration with GlobalLogic

Governance
CFO Message

DataHitachi Integrated Report 2023

Sector Strategies

Co-creation with Nojima

To accelerate the development of digital talent and introduce GlobalLogic’s design-led digitalengineering expertise, we are fostering talent exchanges between GlobalLogic employees
and Hitachi. In Japan, GlobalLogic Japan has established an office within Hitachi’s cocreation base, Lumada Innovation Hub Tokyo, to facilitate the integration of GlobalLogic andLumada’s capabilities. One such collaboration is with Nojima Corporation, aiming to further
enhance Nojima’s Consulting Sales by offering personalized product recommendations
Co-creation project with Nojima
tailored to individual customer preferences.
Teams were formed using a “two-in-a-box” model, pairing specialists from GlobalLogic and Lumada Innovation Hub Tokyo
with the same role, such as a designer and a strategist. The collaboration began with a storytelling session in which Japanese
team members shared anecdotes about Nojima’s customer service, using their own purchasing experiences at Nojima asexamples, to provide insights into the customer-centric approach cherished by Nojima.
Through store visits and interviews with Nojima employees, Japanese team members facilitated the understanding ofJapanese customs and characteristics of the stores and surrounding areas for their GlobalLogic counterparts, who in returnprovided essential insight and support. The involvement of project architects, responsible for creating digital business models
and processes, has enabled swift value creation. The project is currently undergoing validation in physical stores.
GlobalLogic employee interviews
Collaborating with Hitachi was a remarkable learning journey for our team. We faced initial challenges inunderstanding each other’s company culture and bridging the language gap, while the COVID-19 pandemic
further complicated communication.
Frequent discussions and exchanges with our Japanese colleagues were key to overcoming thesechallenges. It allowed us to immerse ourselves in their culture and understand their working style.
We learned the importance of detailed planning, even in Agile projects, to meet Japanese business practices.
Through extensive discussions, we developed a “hybrid Agile model” that blended fixed schedules with thenecessary flexibility to meet the customer’s needs. We believe that the success of these projects stemmed
from the strong foundation of trust built through our ongoing dialogues with Hitachi.
We look forward to working with Hitachi around the world to provide new added value to our customers and society.

Kathirvel Palaniswamy,
Senior Manager at
GlobalLogic

Employee reward system

Award presentation ceremony

As an evaluation system to ensure a link between the organizational and individual goals of the company and divisions, we
introduced Global Performance Management (GPM) in fiscal 2014. Performance is reflected in compensation by setting
bonus evaluation indicators for organizations and individuals based on the management goals set forth in the Mid-termManagement Plan 2024.

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