About the Hitachi Group

Business of the Hitachi GroupIn April 2019, Hitachi announced its three-year 2021 Mid-term Management Plan, positioning IT, Energy, Industry,Mobility and Smart Life as growth sectors, assigning relevant business units to each of them. Hitachi is characterized by
two strengths: The first is our ability to provide solutions that use digital technology to resolve issues facing customers
and society through our cutting-edge IT and our operational technology (OT), which moves social infrastructure such asequipment and systems at production sites, railways and power plants. The second is our highly reliable and superior
products. In these five sectors, Lumada will function as a platform that creates value from customers' data and supports therapid delivery of solutions.

Revenues

Adjusted Operating Income

Composition ratio (%)

Adjusted operating income ratio (%)

OthersOthersHitachi Chemical
Hitachi Metals
HitachiConstruction
Machinery

5%

7%
10%

IT20%

Revenues
by segment¥9,480.6 billion 9%(FY2018)

7%
HitachiHigh-Technologies

5.6%

10.8%

Hitachi Chemical
7.1%

Energy

4%

10%

IT

12%

Industry

Hitachi Metals5.0%

HitachiConstruction
Machinery

Adjusted operating
incomeby segment¥754.9 billion

7.6%

Mobility

16%

Smart Life

2.3%

(FY2018)

11.2%

HitachiHigh-Technologies

Energy7.5%

Industry
Mobility

3.9%

9.1%

Smart Life

Note: Figures for each subsegment include intersegment transactions.

Revenues by Region

Revenues/Adjusted Operating Income Ratio/
Net Income

Composition ratio (%)
Europe1,018.5Asia

11%2,019.5

1,205.6

ASEAN, India
and others
1,009.7

North America

13%

10%

21%
11%

Adjusted operating income ratio (%)

Net income attributable toHitachi, Ltd. stockholders (¥ billion)
9,774.9

10,034.3
9,162.2

Japan¥4,664.5 billion
Outside Japan

ChinaRevenues (¥ billion)

6.6¥4,816.0 billion

7.6
6.3

6.4

Total

¥9,480.6

1,009.8

6%(FY2018)

billion49%

Japan4,664.5

217.4

9,368.6

172.1

9,480.6
8.0

362.9

231.2

222.5

Other Areas
572.3

FY2014

2Hitachi Integrated Report 2019

FY2015FY2016FY2017FY2018

IT

EnergyConsulting

IT products

Systems integration(storage, servers)

Cloud services

Control systems

SoftwareATMs

Industry

Energy solutions
Power grid system

Industry & distribution system
Water & environment system
Industrial products

Mobility

Smart Life

Building services

Medical equipment
Smart life & eco-friendly system(Refrigerator, washing machine, air conditioner,commercial air conditioning system)
Automotive systems(Powertrain, chassis parts, advanced driving
assistance system)(Elevators, escalators)

Revenues ofLumada Business

Railway system¥1,127.0 billion(FY2018)

P.48 Strengthen Lumada

Hitachi High-Technologies
Ownership percentage ofvoting rights:

51.8%

Main products and services

Hitachi Construction Machinery
Ownership percentage ofvoting rights:

51.5%

Main products and services

Hitachi Metals
Ownership percentage ofvoting rights:

53.5%

Main products and services

Hitachi Chemical
Ownership percentage ofvoting rights:

51.4 %

Main products and services

Medical and Life Science Products

Hydraulic Excavators

Specialty Steel Products

Functional materials

Analytical Equipment

Wheel LoadersFunctional Components and Equipment(Electronics materials, printed wiring board

Semiconductor Processing Equipment

Mining Machinery

Magnetic Materials and Applications

materials, electronic components)

Manufacturing and Inspection Equipment

Maintenance and Services

Power Electronics

Advanced components and systems

Advanced Industrial ProductsConstruction Solutions

Wires, Cables, and Related Materials(Mobility components, energy storage

Mine Management Systems

devices and systems, life science relatedproducts)3