FOR IMMEDIATE RELEASE

Strategies for Eight Businesses
Toward Achieving “2012 Mid-term Management Plan” Goals
Tokyo, June 16, 2011 – Hitachi, Ltd. (NYSE: HIT/TSE: 6501) today announced
strategies for eight businesses toward achieving the goals of its “2012 Mid-termManagement Plan.” On June 9, 2011, Hitachi announced a progress of its
management plan “2012 Mid-term Management Plan,” which is three year plan until
the fiscal year ending March 31, 2013. The primary goals of this medium-term
management plan are to promote "Growth Driven by Social Innovation Business" &"Solid Financial Base."
1. Information & Telecommunication Systems Business1-1. FY2010 Results, and Targets for FY2012 and FY2015[Billions of yen]

FY2010 Results

FY2012 Targets

FY2015 Targets

1,652.0

1,750.0

2,300.0

Service revenues ratio

58%

60%

65%

Operating income
Operating income ratio

98.6
6.0%

122.0
7.0%

185.0
8.0%

Overseas revenue ratio

24%

25%

35%

Revenues

1-2. Business Policy“Contribute to Social Innovation Business through collaborative creation withcustomers”- more --2-

1-3. Business Strategy(1) Strengthen domestic businesses[1] Strengthen core business (Solution businesses for each type of industry): add
value, shift to services[2] Expand services in new fields (Highly reliable cloud computing services, etc.)[Billions of yen]
FY2012 Targets

FY2015 Targets

200

500

Cloud related revenues[3] Promote fused businesses leveraging Hitachi's strength in the information
business(2) Strengthen global businesses[1] Expand business through the three pillars of growth (Platform solutions
business centered on storage systems, consulting business, and integrated
IT services business) and synergy generation[Billions of yen]
FY2010 Results

FY2015 Targets

Storage solutions business

322

400

Consulting business

40

130

Integrated IT services
business-

260[2] Aggressively promote solutions business overseas[3] Expand business in emerging markets[Billions of yen]
FY2010 Results

FY2015 Targets

100

200

Asia (including China)
revenues(3) Strengthen business bases[1] Raise efficiency of group consolidated management[2] Strengthen operations[3] Pursue improved quality and productivity by strengthening manufacturing
capabilities[4] Strengthen business continuity- more --3-

2. Power Systems Business
2-1. FY2010 Results, and Targets for FY2012 and FY2015
FY2010 Results

FY2012 Targets[Billions of yen]
FY2015 Targets

Revenues

813.2

870.0

1,100.0

Operating income ratio

2.7%

3.5%

6.0%

Overseas revenue ratio

39%

45%

50%

2-2. Business Policy“The world market leader advancing the future global society with evolutionary
energy technologies”
2-3. Business Strategy(1) Accelerate global development[1] Thermal power: Expand business in growth markets[2] Nuclear power: Target countries proceeding with new nuclear power plant
construction[3] Renewable energy, etc.:- Sell wind power and solar power generation systems overseas- Expand particle beam therapy system business(2) Expand services business[1] Cooperate with local partners, expand bases(3) Support for restoration and rebuilding efforts following the Great East
Japan Earthquake[1] Strengthen support over the medium and long terms for Fukushima andexisting nuclear power plants[2] Restore damaged power generation facilities, shorten regular inspection
timeframes, restart idled thermal power generation plants, expand andstrengthen supplies of gas turbines for emergency generation and sales ofprivate power generators- more --4-2-4. Strategy by Business(1) Thermal Power Business[Billions of yen]
FY2010 Results

Thermal Power Business revenues

460

FY2015 Targets
650[1] Upgrade response to Great East Japan Earthquake[2] Actively sell highly efficient coal-fired thermal power systems, etc. in global
markets[3] Develop business in strategic products, including environmental systems andgas turbines(2) Nuclear Power Business[Billions of yen]
FY2010 Results

Nuclear Power Business revenues

180

FY2020 Targets
360[1] Support Fukushima countermeasures and offer services for the nuclear
power sector in Japan[2] Step up development of overseas business(3) Power Distribution, Renewable Energy and Other Businesses[Billions of yen]
FY2010 Results
Power Distribution,
Renewable Energy andOther Businesses revenues

170

FY2015 Targets
280[1] Strengthen power distribution business[2] Expand and boost sales in renewable energy business[3] Expand and boost sales of particle beam therapy system
3. Social Infrastructure & Industrial Systems Business
3-1. FY2010 Results, and Targets for FY2012 and FY2015(*)
FY2010 Results

FY2012 Targets[Billions of yen]
FY2015 Targets

Revenues

543.3

660.0

830.0

Operating income ratio

0.8%

3.6%

5.2%

Overseas revenue ratio

21%

29%

40%

(*) Simple sum of the figures for three companies: Hitachi, Ltd.’s Industrial & Social Infrastructure
Systems Company, Hitachi Plant Technologies, Ltd., and Hitachi Industrial Equipment Systems
Co., Ltd.

- more --5-3-2. Business Policy“Innovate by fusing IT and technologies supporting social infrastructure andindustrial systems”
3-3. Business Strategy(1) Social Infrastructure Systems Business(*)[Billions of yen]

FY2010 Results
Social Infrastructure Systems
Business revenues

FY2015 Targets

101.6

210.0

(*) FY2015 operating income ratio target: 6%, overseas revenue ratio target: over 35%[1] Strengthen services businesses in the Japanese water business[2] Strengthen and expand overseas water business(2) Industrial Systems Business(*)[Billions of yen]
FY2010 Results

Industrial Systems Businessrevenues

FY2015 Targets

441.7

620.0

(*) FY2015 operating income ratio target: 5%, overseas revenue ratio target: over 40%[1] Expand highly efficient, environmentally friendly components, systems, andservicing businesses
4. Railway Systems Business
4-1. FY2010 Results, and Targets for FY2012 and FY2015
FY2010 Results

FY2012 Targets[Billions of yen]
FY2015 Targets

Revenues

133.1

140.0

320.0

Operating income ratio

1.5%

2.7%

8.0%

Overseas revenue ratio

24%

31%

60%

4-2. Business Policy“Accelerate globalization with technologies developed in Japan”- more --6-4-3. Business Strategy(1) Sustainable growth in Japan[1] Expand sales of rolling stock systems[2] Secure market share in signaling/train control systems[3] Expand hybrid traction systems business[4] Create new businesses by collaboration with customers(2) Expand overseas businesses[1] Further expansion of U.K. and Chinese business[2] Focus on total project integration business in emerging markets (Southeast
Asia, Brazil, India)
5. Urban Planning and Development Systems Business5-1. FY2010 Results and FY2012 Targets[Billions of yen]
FY2010 Results

FY2012 Targets

Revenues

404.5

420.0

Operating income ratio

7.4%

8.0%

Overseas revenue ratio

31%

36%

5-2. Business Policy“Aim to expand business further, centered on overseas business”
5-3. Business Strategy(1) Japan business strategy[1] Strengthen and expand elevator and escalator modernization business tomeet growing refurbishment demand[2] Provide high-value-added services for whole buildings linked to products ofenergy saving and security(2) Overseas business strategy[1] Focus on the Asian belt zone where market growth is expected[2] Expand business for new elevators and escalators by strengthening regional
HQ framework- more --7-

6. Information & Control Systems Business(*)
6-1. FY2010 Results, and Targets for FY2012 and FY2015
FY2010 Results
Revenues
Overseas revenue ratio

FY2012 Targets[Billions of yen]
FY2015 Targets

233.2

250.0

350.0

7%

20%

35%

(*) Revenues are included separately for the Information & Telecommunication Systems Company,
the Power Systems Company, the Industrial & Social Infrastructure Systems Company and theRail Systems Company.

6-2. Business Policy“Drive the Social Innovation Business by providing total solutions fusing
information and control technologies”
6-3. Business Strategy(1) Promote the total solution business based on information and control
technologies[1] Promote next-generation smart grid solutions, extending from power
generation, transmission and distribution to consumer systems[2] Promote total solutions for railways, extending from railway control topassenger services[3] Develop next-generation infrastructure systems business in the social
infrastructure and industrial systems fields(2) Expand business in global growth markets[1] Develop regionally, centered on the social infrastructure systems market inemerging countries (such as China and India)[2] Accelerate localization of manufacturing, sales and services[3] Respond to demand for upgrading infrastructure in industrialized nations(3) Proceed to make strategic investments[1] Reinforce business base[2] Promote development of core business platforms- more --8-

7. Automotive Systems Business(*1)
7-1. FY2010 Results, and Targets for FY2012 and FY2015
FY2010 Results

FY2012 Targets[Billions of yen]
FY2015 Targets

Revenues

773.5

830.0

Over 1,000.0

Operating income ratio

2.4%

3.5%

Over 5.0%

Overseas Revenue Ratio
for Global Customer
Bases(*2)

49%

51%

Over 60%(*1) Includes Battery Systems Company, in accordance with the revision of segment categories.
(*2) These are combined ratio with figures of automotive systems that are equipped with vehicles atcustomer’s base and figures of mobile batteries’ overseas revenues.

7-2. Business Policy“Achieving the goals set out in this global growth strategy will increase ourcompetitiveness on the world stage”
7-3. Business Strategy[1] Double revenues of global customers and emerging nations[2] Expand e-product (electronics and electromechanical products) sales[3] Accelerate local production for local consumption, and speed up
management decision-making
8. Consumer Business
8-1. FY2010 Results and FY2012 Targets(1) Consumer Business
FY2010 Results[Billions of yen]
FY2012 Targets

Revenues

951.5

1,000.0

Operating income ratio

1.6%

2.0%

Overseas revenue ratio

46%

50%

[1] Hitachi Consumer Electronics Co., Ltd.

[Billions of yen]

FY2010FY2012

Results

Targets

Revenues

386.0

360.0

Operating income(0.2%)

1.0%

67%

78%

Overseas revenue ratio- more --9-[2] Hitachi Appliances, Inc.

[Billions of yen]
FY2010Results

FY2012
Targets

FY2015
Targets

Revenues

502.6

560.0

655.0

Operating income

2.2%

2.7%

5.0%

Overseas revenue ratio

32%

35%

45%

8-2. Business Policy[1] Create and expand eco-friendly living infrastructure businesses[2] Video related products and components business:
Create global No.1 businesses in optical storage and LCD projectors[3] Home appliances and air conditioning:
Expand global business and nurture new environment fields
8-3. Business Strategy(1) Digital Media Business"Create a continuously profitable structure centered on the video related products
and components business"[1] LCD projectors: Capture No.1 share worldwide with high-value-added
models(*)(*) Monetary basis, excludes SVGA and home use.

[2] Optical storage: Maintain No. 1 share worldwide(*) by strengthening costcompetitiveness(*) Unit basis.

[3] Flat-panel TVs: Structure the business model based on low-riskmanagement and a focus on distinctive technologies(2) Hitachi Appliances, Inc.
“Expand business as a corporation that contributes to the global environment
around a strategy of local production for local consumption and premium products”[1] Air conditioning business:
Further expand global business[2] Home appliance business:
Expand global business[3] Nurture new environment fields: Expand all-electric housing business,
LED lighting business, andsolar power generation(*) business(*) Sold by Hitachi Consumer Marketing, Inc.

- more -- 10 -

Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” asdefined 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 andfinancial 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 andare subject to various risks and uncertainties that could cause actual results to differ materiallyfrom 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 Digital Media & 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 forsuch 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 othermaterials, 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, parts and components;•

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 restructuring efforts to improve management efficiency bydivesting 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- more -- 11 -

countries where Hitachi conducts business, particularly Japan, Asia, the United States andEurope, 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 havebecome or may become parties;•

the possibility of incurring expenses resulting from any defects in products or services ofHitachi;•the possibility of disruption of Hitachi’s operations in Japan by earthquakes, tsunamis orother natural disasters, including the possibility of continuing adverse effects on Hitachi’s
operations as a result of the earthquake 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 other materials
published by Hitachi.

About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading
global electronics company with approximately 360,000 employees worldwide.
Fiscal 2010 (ended March 31, 2011) consolidated revenues totaled 9,315 billion yen($112.2 billion). Hitachi will focus more than ever on the Social Innovation Business,
which includes information and telecommunication systems, power systems,
environmental, industrial and transportation systems, and social and urban systems,
as well as the sophisticated materials and key devices that support them. For more
information on Hitachi, please visit the company's website at http://www.hitachi.com.
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Information contained in this news release is current asof the date of the press announcement, but may be subject
to change without prior notice.
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