Information &Telecommunication Systems
Business Strategy
Hitachi IR Day 2011

June 16, 2011

Shinjiro Iwata
Senior Vice President and Executive Officer
President & CEO
Information & Telecommunication Systems Company
Hitachi, Ltd.
© Hitachi, Ltd. 2011. All rights reserved.

Information & Telecommunication Systems
Business Strategy

Contents
1. Business Overview and Outlook
2. Growth Strategy
3. Strengthening Business Bases
4. Contribution towards Japan’s Recovery
5. Conclusion© Hitachi, Ltd. 2011. All rights reserved.

1-1 Business Fields
Provide highly reliable social infrastructure systems
Collaborative creation with customers based on quality and trust

Services
IT services
Data center
Consulting

System solutions
Large-scale systems
Highly reliable systems

Platforms
Servers/Storage/Networks

Hardware
SoftwareHighly Reliable Cloud Computing Services© Hitachi, Ltd. 2011. All rights reserved.

3

1-2 Business Overview
Management vision:

Contribute to Social Innovation Businessthrough collaborative creation with customers

Business size FY2010 revenues: ¥1,652.0 billion

Revenue breakdown
SoftwareHardware32%

Services (Incl. System solutions)10%

Financial institutions Government

30%

58%
Industry,
distribution

Social infrastructure

20%

30%

20%

Japan

Overseas76%24%(Note) The percentages for the breakdown of Japanand overseas revenues are approximate figures.

North America: 45%
Europe: 25%
China/Asia etc.: 30%© Hitachi, Ltd. 2011. All rights reserved.

4

Results and FY2011 Forecasts
1-3 FY2010(1) Revenues

Revenues(Billion yen)

Hardware/software
Services

1,705.5 1,652.0 1,700.0 1,750.0

FY2010 Summary
Revenues declined reflecting
impact of reduced IT investment inJapan, although storage solutions
saw sales growth overseas.

Outlook from FY2011
Services revenue ratio
58%

58%

60%

60%

FY2009 FY2010 FY2011 FY2012(Actual) (Actual) (Forecast) (Target)

Overseas revenue ratio

22%

24%

25%

Expect higher revenues due togreater consolidated
management efficiency fromJapanese group company
mergers, capturing demand fordata center services, and strong
growth in overseas storage
solutions business.

25%© Hitachi, Ltd. 2011. All rights reserved.

5

Results and FY2011 Forecasts
1-4 FY2010(2) Operating Income

Operating Income (Billion yen)
(Operating income ratio)
5.5%

94.5

6.0%

98.6

6.5%

110.0

7.0%

122.0

FY2009 FY2010 FY2011
FY2012(Actual) (Actual) (Forecast) (Target)

FY2010 Summary
Operating income rose due tobetter project management andcost cutting, etc., despite theimpact of the Great East Japan
Earthquake.

Outlook from FY2011
Expect higher operating income
due to improved efficiency inconsolidated group management,along with rigorous project
management, use of offshore
resources and cost cutting.

© Hitachi, Ltd. 2011. All rights reserved.

6

Information & Telecommunication Systems
Business Strategy

Contents
1. Business Overview and Outlook
2. Growth Strategy
3. Strengthening Business Bases
4. Contribution towards Japan’s Recovery
5. Conclusion© Hitachi, Ltd. 2011. All rights reserved.

2-1 Market Trends and Competitive Environment

EconomyEmerging markets expected to grow, slow recovery expected inindustrialized nations
Accelerating global competition, rise players from emerging nations

Japan:

IT market

Recovery slow in 2011 due to earthquake etc., reductions in IT investment continueMarket recovery expected in 2012 due to demand associated with relief and recovery efforts

Global:Growth seen worldwide, driven by emerging markets

IT systems

Growing interest in BCP* and data centers following the Great East Japan
Earthquake
Increasing adoption of IT as a service, full-fledged use of cloud computing
Increasing need for large volume data utilization in businessIT vendors

Vertical integration by global major vendors
Strengthening social infrastructure solutions businesses
Enhancing global business responsiveness (M&As, using offshore
resources)* Business Continuity Plan
© Hitachi, Ltd. 2011. All rights reserved.

8

2-2 Focused Businesses for the Future and Hitachi Strengths
Business growth based on Hitachi strengths of fusing "Information" and "Control"- Create safe, secure, and comfortable social infrastructure supported by highly reliable systems -Next generationtransportation systems

Government

Financial institutions

Green mobility

High-performance,next-generation city services

RenewableenergyIntelligent water systems

Next generation factories

Next generation hospitals

Provide advanced IT platforms
Highly reliable cloudcomputing services

Green IT

Security

Storage and large data
volume processing

Fusion of Information andControl technologies© Hitachi, Ltd. 2011. All rights reserved.

92-3 FY2015 Targets

FY2015
Targets

Revenues: ¥2.3 trillion

Operating income ratio: 8%

Overseas revenue ratio: 35%

Services revenue ratio: 65%

Leading company in Social Innovation Business
Global company recognized for its strong products and services
Strengthen and expand
domestic businesses

Strengthen and expand
global businesses

Fields of future focus■Fused Businesses■High reliability cloud businesses■Services to allow easy use of mass data
© Hitachi, Ltd. 2011. All rights reserved.

102-4 Strengthen Domestic Businesses

Key policies
Strengthen core domestic businesses, add value, shift to services
Development of new business areas

Achieve global growth by strengthening andexpanding core domestic businesses andgrowing fields© Hitachi, Ltd. 2011. All rights reserved.

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2-5 Strengthen Core Domestic Businesses
Add value to businesses to expand core businesses in Japan
Financial
institutions

Expand into new areas through involvement from upstream operations
・ Construct core systems and retailing systems for major companies
・ Expand highly reliable outsourcing services

Maintain competitive position by improving proposals for new services

Government

・ Government systems:
capture orders for optimized and next-generation systems, rebuild large-scale systems

・ Local government/academia:
increase cloud computing proposals

Industry,
distribution

Expand high-value-added services
・ Strengthen ERP*1 solutions, large-scale outsourcing
・ Active focus on solutions for restoration and BCM*2 response

Expand businesses in high-growth business domains
Telecommunications

・ Expand sales of next-generation infrastructure products and business systems
to telecom carriers・ Expand business in the high-growth corporate network field*1 Enterprise Resource Planning*2 Business Continuity Management© Hitachi, Ltd. 2011. All rights reserved.

12

2-5 Strengthen Core Domestic Businesses
Add value to businesses to expand core businesses in Japan
Expand into new areas through involvement from upstream operations

Financial
・ Construct core systems and retailing systems for major companies
Expandreliable outsourcing
services
Efforts
tohighly
expandbusinessshare
institutions

Cultivate
newpositionbusiness
Maintain dominant
by improvingdomains
proposals for new services
Government

・ Government systems: capture orders for optimized and next-generation systems,
rebuild large-scale systems
・ Local government/academia: increase cloud computing proposals

Top in the below
categories
in 15thservices
Customer Satisfaction Survey,
Expandhigh-value-added
Nikkei Computer
August18,
2010 edition
・ Strengthen
ERP*1
solutions,large-scale outsourcing
Industry,
Hitachi, Ltd.
distribution

・ Active focus on solutions for restoration and BCM*2 response・ IT consulting, upstream design-related services (Maker division)・ System development-related services (Maker division)
Expand businesses in high-growth business domains
・ System operation-related services (Maker division)・ Expand sales of next-generation infrastructure products and business systems
Telecommunications
Hitachi Electronics
Services Co., Ltd.
to telecom carriers
・ System operation-related
・ Expand businessservices
in the high-growth corporate network field(Information services company division)*1 Enterprise Resource Planning*2 Business Continuity Management© Hitachi, Ltd. 2011. All rights reserved.

13

Design Techniques through Collaborative Creation
2-6 Upstream
with Customers

Experience Oriented Approach (Ex Approach)
Method combining the processes and skills necessary to form consensus quickly
Reform business processes and systems through collaborative creation with customers

Observe workplaces
with specialists

Customercomments

Share ideal business process
flows in joint workshops

Create visual image of systems
by using prototyping technology"Now I see the importance of creating a visual image""There is now definitely less need to rethink things at the development stage"

Expanding scope to target a wide range of users,
particularly the finance sector (A total 33 projects as of March 2011)<Bank> Improve customer service at teller windows while improving operation efficiency<Life insurance company>
Improve sales processes based on behavioral analysis of high-performing sales staff

Develop specialist staff (Approx. 140 as of March 2011)© Hitachi, Ltd. 2011. All rights reserved.

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2-7 Creating Highly Reliable Cloud Computing Services
Aim to create highly reliable cloud computing services
for social infrastructure systems and mission critical operations
Expand introduction toenterprise information
systems

Introduce and expand
application in coreenterprise systems

Full-scale application in core
corporate systems and social
infrastructure systems

Around2015

Present

Highly reliable cloud computing technologies (security, interaction platform,
performance assurance, data protection, integration and operating techniques)

Related revenues

FY2012: ¥200 billion → FY2015: ¥500 billion

Growing adoption of cloud computing by the corporate and government sectors for large-scale systems andcore systems
Sumitomo Mitsui Banking

Using private cloud storage service

Tokyo Gas

Approx. 12,000 group employees using SaaS*1 type groupware

KajimaFirst instance in Japan of fluid analysis system in construction projects shifting
to cloud services

Ministry of Foreign Affairs of Japan

Integration of ministry IT infrastructure into a private cloud to allow centralized management”

Japan Meteorological Agency

Applying PaaS*2 in IT infrastructure of weather and disaster prevention information

Japan Tobacco

Using private cloud-type infrastructure environment services in 100 types of systems*1 Software as a Service *2 Platform as a Service© Hitachi, Ltd. 2011. All rights reserved.

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2-8 Strengthening Cloud Computing Business
Our strength: Provision of reliable cloud services■ Full support across all fields, including facilities, IT, service development
and data center operation as a electric conglomerate■ Reflection of large-scale evaluation by utilization within the Hitachi group to the service

Expand and enhance highly reliable cloud computing services■ Establishment of a robust data center in Western Japan and vitualization of data centers
・ Plan to construct a third data center in Okayama
・ Cloud service interconnection, promotion of the integrated management between
the data centers■ Strengthen BCM solutions
・Create hybrid system combining customer’s systems and Hitachi data center services■ Collaborative creation with partners; reinforcement of ability to offer services.
・ Promotion of the SaaS use by the open cloud market place.
・ Provision of the SaaS business infrastructure for the membership B to B market place

Reinforcement of the technology to produce the new value fromcloud computing services■ Reinforcement of technologies to strengthen usability, search performance andanalysis of vast volumes of data that exist in cloud databases
・ Joint development with the University of Tokyo of a super high-speed
database engine
・ Development of technology to make use of mass data through the Hadoop/ grid computing© Hitachi, Ltd. 2011. All rights reserved.

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Promote Fused Businesses Leveraging Hitachi's Strength
2-9 inthe Information Business

Create safe, secure, comfortable social infrastructure and provide greener, high-value services

Hitachi's next generation city : build a city with sustainable relationshipbetween humans and the earth

China

Other
countries

Sino-Singapore Tianjin Eco-City: Create a model for an eco-city
Guangzhou Knowledge City: A city built on knowledge-intensive industries
Collaboration with Dalian City (China) in the field of recycling resources and lowcarbon economy

Verification experiment for isolated-island smart grid in Hawaii
Smart community verification experiment in Spain

Participate from upstream stage in the city
planning process
・Offer planning support using
eco experience oriented approach
Provide full support from planning to operationand maintenance
Develop services businesses based on
IT platforms

High-performance,next-generation city services

Provide advanced IT platforms
Highly reliable cloudcomputing services

Green IT

Security

Storage and mass
data processing

Fusion of Information andControl technologies© Hitachi, Ltd. 2011. All rights reserved.

17

2-10 Strengthen Global Business
Key policies
Expand business through the three pillars of growth and synergy generation
First Pillar

Create high added value in platform business ~"One Platform for All Data"~

Second Pillar

Expand global consulting network and business scale

Third Pillar

Realization of integrated IT services business

Aggressively promote overseas solutions business

Expand business in emerging markets

By strengthening and expanding global business
Overseas revenues: ¥800 billion,
Overseas sales ratio: 35% (FY2015)© Hitachi, Ltd. 2011. All rights reserved.

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Pillar: Platform Solutions Business Centered on
2-11 First
Storage Systems

Business Vision: "Data Drives Our World"
Add value to platform solutions supporting data utilizationDatacollection andmanagement

Content cloudUtilization and analysis
of mass data

Information cloud■Shift from content cloud (collection and management of data) to information cloud (utilization of data)■Pursue collaborative creation with customers through mass data analysis/utilization and create new businesses
based on Hitachi's strengths in storage

Capture market share in growth fields
・ Integrated platforms ・ Data analytics ・Managed services

Fortify and expand sales channels, further expand businesses in emerging markets

FY2010results■Record revenue on a U.S. dollar basis (up 18% year over year)■Large-scale storage: Maintained top-class worldwide market

Storage solutions business revenues

FY2010: ¥322 billion → FY2015: ¥400 billion© Hitachi, Ltd. 2011. All rights reserved.

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Pillar: Platform Solutions Business Centered on
2-12 First
Storage Systems

Create new value through integrated platforms and mass data utilization■Realization of long-term preservation of data, high-speed search and analysis■Development of business fields that utilize mass data
(Healthcare, compliance, video surveillance, e-mail, etc.)

Unified Compute Platform (UPC):
Launched in North America
in June 2011

Middleware
Servers

Integrated
management
software

Storage

Networks■ Roll out enhanced version in 2012

ＵＣＰ
Launched Converged Data Center Solutions in June 2011
■ Develop optimal solutions for cloud applications and specific operations

Platform solutions business■ Steadily expand server and networks businesses© Hitachi, Ltd. 2011. All rights reserved.

20

2-13 Second Business Pillar: Consulting Business
Expand global consulting business

Expand global consulting network
39 bases, staffed by a little over 4,000 persons(as of the end of May, 2011)■ Established bases in China and India■ Acquired Sierra Atlantic (U.S.)(December 2010)
Global consulting network■ Reinforce bases in Europe(Acquired Spanish company in January 2011)

Use resources at Sierra Atlantic to boost portfolio

Expand provision of services to global accounts■ Win large projects from major North American and Japanese companies,
and large numbers of repeat orders
Consulting business revenues

FY2010: ¥40 billion → FY2015: ¥130 billion© Hitachi, Ltd. 2011. All rights reserved.

21

2-14 Third Pillar: Integrated IT Services Business
Expand business domains in global IT service fieldContinue to look at M&As for bolstering businessand customer bases
Target■ Managed service business based on data centers■ Cloud computing business including SaaS/PaaS/IaaS*
Third Pillar:
Integrated IT Services
Business
First Pillar:
Platform Solutions
Business

Second Pillar:
Consulting Business

Integrated IT services business revenues FY2015: ¥260 billion* Infrastructure as a Service© Hitachi, Ltd. 2011. All rights reserved.

22

2-15 Aggressively Promote Solutions Business Overseas
Expand solutions business overseas, mainly targeting the finance and industry sectors

Extend greater support forJapanese companies expanding
global business
Expand business to global
customers' local operations

Solutions developed in Japan thathave a proven domestic track record
・ Finance: risk management, channel solutions
・ Industrial system: global SCM*1, production
control packages
・ Government: ITS*2 systems, etc.

Introduce advanced U.S. and European technology into Japanese
projects

Japan

Europe/America

China/Asia

Extend support for Japanese companies expanding global business Japan
Introduce into
Japanese projects*1 Supply Chain Management

Expand to local customers

Local
Bases
Discovery of new applications and technologies overseas*2 Intelligent Transport Systems© Hitachi, Ltd. 2011. All rights reserved.

23

2-16 Expand Business in Emerging Markets
Actively develop China, India and Brazil as priority markets
China■ Promote commercialization (finance IT business*, data centers and services, etc.)
through alliances with local companies■ Cultivate regional customers
・Establish consulting bases: win continuous orders from global accounts
・Provide full support for environment-conscious data centersfrom planning to integration and operation- Established strategic partnership with Infohold (May 2011)

India■Continue to actively target large government projects(e.g. infrastructure)Continue to develop markets with competitive platform products
Storage, ATMs, StarBoard interactive whiteboards, etc.
■Continue to foster growth in storage businessin emerging economies (Brazil, etc.)■Promote locally led product development: strengthen local
R&D framework in China and India* Channel solutions, risk management solutions, etc

China/Asia revenues

FY2010: ¥100 billion → FY2015: ¥200 billion© Hitachi, Ltd. 2011. All rights reserved.

24

Information & Telecommunication Systems
Business Strategy

Contents
1. Business Overview and Outlook
2. Growth Strategy
3. Strengthening Business Bases
4. Contribution towards Japan’s Recovery
5. Conclusion© Hitachi, Ltd. 2011. All rights reserved.

3-1 Strengthening Business Bases
Raise efficiency of group consolidated management■ Synergy efforts arising from establishment of Hitachi Solutions*in October, 2010
・ Orders up by ¥15.0 billion (FY2010)
・ Year-on-year sales increase of 10% (FY2011)
・ Provide compound solutions combining strong solutions■ Share SI services (which make the most of the strengths of each company)
according to type of industry / customer

Strengthen operations■ Cost cutting (Software/services, hardware, indirect materials)■ Investment plan: FY2011 ¥100.0 billion

Pursue improved quality and productivity bystrengthening manufacturing capabilities■ Standardization of hardware manufacturing processes and techniques■ Reinforcement of consolidated project management

Strengthen business continuity■ Review BCP to prepare for future disasters, pandemics, and other risks* Formed by the merger of Hitachi Software Engineering and Hitachi Systems & Services© Hitachi, Ltd. 2011. All rights reserved.

26

3-2 Strengthen company business management system
Provision of optimal solutions for customers by maximizing customer leverage andsatisfaction and improvement of efficiency
Hitachi Solutions, Ltd.: October, 2010 started operations
Hitachi Systems, Ltd. (provisional name): To start operation in October, 2011 (Formedby the merger of Hitachi Electronics Services and Hitachi Information Systems )Mission

Hitachi, Ltd.

Hitachi Solutions, Ltd.

Hitachi Systems, Ltd.

IT services to realizesocial innovation businessTotal solution utilizing
system construction
know-howOne-stop services using
it’s bases nationwide

Large-scale
systemMaximizing
customerleverage andsatisfaction
Small andmedium size
scale system

Maximize each company’s strength / Synergy
Advantages•Correspondence power
for large-scale customers•Global business bases•Large-scale softwaredevelopment•Reliable systemtechnology

・Operation andmaintenance services
・Network systemconstruction© Hitachi, Ltd. 2011. All rights reserved.

27

3-3 Contribution to Environment
Global Environment Contribution Plan by IT
Prevention of global warming

Carbon footprint project

Recycling and reuse of resources Product collection promotion project・Product collection center established (FY2010)
・Set up collection routes for rare earth metals and increase collection volume (FY2011)

Preservation of eco system

Nature Restoration Project・Testing and study of IT utilization in ecosystempreservation via the "IT eco experimental village"
Started in FY2011

Environment-Conscious Data Center Project
Demonstration project at the Yokohama site
(Bldg. 3) to demonstrate coordination of IT and
facilities, and air conditioning technologies

Establish technology to halve data center power
consumption (Compared to that consumed in 2007)© Hitachi, Ltd. 2011. All rights reserved.

28

Information & Telecommunication Systems
Business Strategy

Contents
1. Business Overview and Outlook
2. Growth Strategy
3. Strengthening Business Bases
4. Contribution towards Japan’s Recovery
5. Conclusion© Hitachi, Ltd. 2011. All rights reserved.

4-1 Contribution towards Japan’s Recovery
Support customers’ recovery and preparations for the future
Reconstruction aid
Business continuity
Establish new data centers or increase floor space(Okayama, Yokohama and other locations)
Offer free diagnosis of business continuation risk
Establish BCP, BCM solution promotion center

Reduction of power consumption
Power saving at data centers
Offer power saving solutions foroffices and data centers

Restoration support
Special maintenance service, Free cloud service, etc.
・Disaster reconstruction aid programs (13 free services*)
A disaster recovery team is dispatched to disaster area
immediately after disaster strikes* As of the end of May, 2011
© Hitachi, Ltd. 2011. All rights reserved.

30

Information & Telecommunication Systems
Business Strategy

Contents
1. Business Overview and Outlook
2. Growth Strategy
3. Strengthening Business Bases
4. Contribution towards Japan’s Recovery
5. Conclusion© Hitachi, Ltd. 2011. All rights reserved.

5-1 Conclusion

Revenues
Hardware/software
Services

1,700

Operating income (Billion yen)(Billion yen)

2,300

(Operating income ratio)
7.0％
6.5％

1,750

8.0％

185

110

122

Services revenue ratio
60%

60%

FY2012FY2011(Forecast) (Target)

65%

FY2015(Target)

FY2011(Forecast)

FY2012(Target)

FY2015(Target)Overseas revenue ratio

25%

25%

35%
© Hitachi, Ltd. 2011. All rights reserved.

32

5-2 Conclusion

FY2015 Targets
Revenues: ¥2,300 billion
Operating income ratio: 8%
Overseas revenue ratio: 35%
Services revenue ratio: 65%

Contribute to Social Innovation Businessthrough collaborative creation withcustomers© Hitachi, Ltd. 2011. All rights reserved.

33

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-looking
statements” 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 and trends 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 upon current 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 of the 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 States and Europe, as well as levels of demand in the
major industrial sectors Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;■exchange rate fluctuations of the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro;■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 in Japan, declines in which may require Hitachi to write down equity securities that it holds;■the potential for significant losses on Hitachi’s investments in equity method affiliates;■increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Components & Devices and the DigitalMedia & Consumer Products segments;■uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance for such products;■rapid technological innovation;■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;■fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins or shortages of materials, parts and components;■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 of raw materials or shortages of materials, partsand components;■uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;■uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction
measures;■general socioeconomic and political conditions and the regulatory and trade environment 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 and business customs including, without limitation, contract terms and conditions and labor relations;■uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;■uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;■uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties;■the possibility of incurring expenses resulting from any defects in products or services of Hitachi;■the possibility of disruption of Hitachi’s operations in Japan by earthquakes, tsunamis or other natural disasters, including the possibility of continuing adverse effects on Hitachi’s operations as a result of theearthquake and tsunami that struck northeastern Japan on March 11, 2011;■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;■uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its significant employee benefit related costs; and■uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in othermaterials published by Hitachi.

© Hitachi, Ltd. 2011. All rights reserved.

34