Consumer Business Strategy

June 9, 2010

Shutoku Watanabe
General Manager, Consumer Business Division,Hitachi, Ltd.
President and Representative Director
Hitachi Consumer Electronics Co., Ltd.

1. Basic Management Policy for the Consumer Business
Basic Management Strategy
Expand earnings through video and components businesses created fromvisual technologies
Home appliance business: Achieve stable profitability in flat-panel TVs
Expand electrical home appliance businessoverseas, expand new environment fields
Air conditioning business: Expand further globallyFY2012 Management Targets
Revenues

Overseas
Operatingrevenue ratio income ratio

FY2009¥929.2 billion

47%(0.8%)

FY2012¥930.0 billion

50%

2.3%
© Hitachi, Ltd. 2010. All rights reserved.

22. Consumer Business Revenue Composition

OthersVideo andcomponents¥262.5 billion
Air conditioning
FY2009¥234.0 billion
consolidated
revenues¥929.2 billion
Flat-panel TVs

Video andcomponents

Air conditioning¥300.0 billion¥318.0 billion

FY2012
consolidated
revenues¥930.0 billion

Electrical home
appliances and newenvironment fields¥250.0 billion

Flat-panel TVs¥62.0 billion

Electrical home
appliances and newenvironment fields¥230.0billion¥112.4 billion

Video and components

Expand LCD projectors and increase capacity and speed of optical storage

Flat-panel TVs
Electrical home appliances

Air conditioning

Concentrate development resources for Japan market and utilize procured products

Expand new environment field and expand overseas business
Expand global air conditioning business (Overseas revenue ratio 50%)
© Hitachi, Ltd. 2010. All rights reserved.

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and Expand Energy-saving and3. Create
Environmental Businesses
Hitachi’s
strengths

Social infrastructure
responding toenvironmental needs

Factories

Product lineup, solutions provision and total
services using Hitachi’s energy-saving andenvironmental application technologies
Social infrastructurebusiness cooperation

Consumer Business Group

Outside network

Energy-saving products

Data centers

Air conditioningFreezers

Accumulator batteries

Eco Cute heat pumpwater heaters

IH cooking heaters

Electrical homeappliances

Flat-panel TVs

Large buildings/Shops

Communities
Small buildings/Shops

HousesOverseas development

Environmentallyfriendly lifestyleinfrastructure business

Lighting (LED)

Eco systems
・Network technologies
・Knowledge extraction
・Data security management
・Energy management

Solar powergeneration

Store energy saving

Small-scale monitoring

Engineering© Hitachi, Ltd. 2010. All rights reserved.

44. FY2012 Management Targets

FY2012 Management Targets
Revenues ¥930.0 billion
Overseas revenue ratio 50%
Operating income ratio 2.3%
Expand earnings through video and components businesses
created from visual technologies
Home appliance business: Achieve stable profitability in flat-panel TVs
Expand electrical home appliance businessoverseas, expand new environment fields
Air conditioning business: Expand further globally© Hitachi, Ltd. 2010. All rights reserved.

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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-lookingstatements” 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 orcurrent 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 investments in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the majorindustrial sectors which Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;- exchange rate fluctuations for 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 technology 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;- 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;- 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 socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, without limitation, direct orIndirect restrictions by other nations on imports, or 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 or other natural disasters;- 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 and that of its customers;- uncertainty as to the accuracy of key assumptions Hitachi uses to valuate 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. 2010. All rights reserved.

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