Information &Telecommunication Systems BusinessInformation Meeting
Effectively Utilizing Big Data
December 7, 2011

Ｓｈｉｎｊｉｒｏ Ｉｗａｔａ
Senior Vice President and Executive Officer
President & CEO
Information & Telecommunication Systems Company
Hitachi, Ltd.

Ｊａｃｋ Ｄｏｍｍｅ
CEO, Hitachi Data Systems Corporation© Hitachi, Ltd. 2011. All rights reserved.

Information &Telecommunication Systems BusinessInformation Meeting
Effectively Utilizing Big Data
［Contents］

１．Big Data and Effective Use in Society
２．Hitachi’s Strengths and Basic Policy
３．Hitachi Data Systems’ Initiatives
４．Conclusion© Hitachi, Ltd. 2011. All rights reserved.

1-1. Today’s Information Meeting
Fields of Future Focus (Announced in June 2011)

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

Expand global businesses

Fields of future focus

Today’s
Information meeting■Fused businesses■Highly reliable cloud businesses■Businesses for effectively utilizing Big Data

© Hitachi, Ltd. 2011. All rights reserved.

31-2. Society is Overflowing with Beneficial “Data”

Machine-originated data
Electricity meters

Ｂｉｇ Ｄａｔａ

Transportation information
Communications logs
SNS
Car navigation
GPS

Environment andweather data
Facility monitoring

People-originated data

Twittering

Logistics
tracking

Movie, picture, voice andother content download

Video
Mail and office documents
Smartphonessurveillance
Diagnostic images andPeopleelectronic patient records
movement
Back office business data
Internet-based(Production management/
inventory management, etc.)
purchasing

IC card utilization© Hitachi, Ltd. 2011. All rights reserved.

41-3. Increasing Data Volumes and Diversification
From Peta/Exa Byte to Zetta Byte Era of all datain the world
80% of all data is unstructured
Twittering
ＳＮＳ

News

Officedocument

ＤＢ

ＲＦＩＤ
Digital Image Ｅ-ｍａｉｌ Unstructured

Data

Hi-Vision recording

ＧＢ

ＴＢ

ＰＢ

ＥＢ

Giga Byte

Tera Byte

Peta Byte

Exa Byte

Structured
Data

ＺＢ
Zetta Byte

5

© Hitachi,© Hitachi,Ltd. 2011.
Ltd.All2011.
rightsAllreserved.
rights reserved.5

1-4. The Big Data Era Has Come!
FutureSpread utilizing Big Data related Business
Apply utilizing Big Data included unstructured Data
to the actual business
Enhance platform technologies for utilizing Big Data

NOW

Launch utilizing Big Data related business
Progress the development of high value service
by informatized/intelligent Big Data globally
Enhance various technologies for utilizing Big Data
© Hitachi, Ltd. 2011. All rights reserved.

6

1-5.

Big Data Utilization Fields- Data Generated by People

Retail field One-to-One marketing

Medical field Personalized medical care
Banking and insurance services
Banking/
insurance field tailored to specific customer segments
Public opinion analysis,
Publicadministration field decision-making support© Hitachi, Ltd. 2011. All rights reserved.

71-6. One-to-One Marketing Utilizing Big Data

Information

Information

Provision of products and services
based on consumer behavior and actions

Information

Information

Optimized services

Information

Companies
Information

Information© Hitachi, Ltd. 2011. All rights reserved.

81-7. Big Data Utilization in the Medical Field
Advanced and personalized medical care utilizing various data
ＡＴＧＣＣＧＡＡＴＧＣＣＧＡＡＴＧＣＣＧＧＡＡＴＧＣＣＧＡＡＴＧＣＣＧＡＴＧＡＡＴＣＧＡＴＧＣＣＧＡＡＴＧＣＣＧＡＡＴＧＣＣＧＡＴＧＣＣＧＣＣＧＡＡＴＧＣＡＴＧＣＣＧＡＡＴＣＧＡＴＧＡＡＴＣＡＴＧＣＣＧＡＡＴＧＣＣＧＡＡＴＧＣＣＧＡＴＧＡＡＴＣＧＡ

・Advanced medical care,
new treatment development

・Personalized medical treatment
based on genetic information
・Effective drug administration,side-effect prevention
・Lower medical costs

・Link with local medical treatment, legal compliance© Hitachi, Ltd. 2011. All rights reserved.

9

1-8.

Big Data Utilization- Data Generated by Machines and Equipments

Maintenancefield

Preventive maintenance andoperation services

Power supply-demand forecastingElectricity field
services
Transportation Crowd movement analytics andforecasting services
fieldCommunications Communications analysis services
field© Hitachi, Ltd. 2011. All rights reserved.

101-9. Big Data Utilization in the Railway Field
Satellite imagery, geological and land utilization data, facility logs,
3D-CAD diagrams, rail line plans, etc.
Spatial information

Infrastructure information

Activity information

Railway line geography
Station buildings

Rolling stock, railway facilities
Power, communications

Railway operation
Movement of train station
users

facilities

Information platform
for 3D city spaces(International standard terminology)

Development along
railway lines

Facility management

Real estate management
Urban development inand around train stations

More efficient design andoperation
Preventive maintenanceplanning

Services
サービス

Improved services and sales
Emergency response plans© Hitachi, Ltd. 2011. All rights reserved.

11

1-10. Big Data Utilization in the Smart City Field
Connect social infrastructure and lifestyles with services
to create a safe, secure, comfortable and eco-friendly society
Next-generation transportation systems

Automated
operation

Intelligent water systems

Supply-demand
adjustment

Smart grids

People activity
supportGreen mobility

SmoothSmartControl

Information

Systems fusing information and control
for creating “smart and smooth” societies© Hitachi, Ltd. 2011. All rights reserved.

12

1-11. Comfortable Services Effectively Utilizing Big Data
Financial services

Education

Healthcare/medical care

Public administration

Manufacturing/distribution
Water services

Transportation

Create safer as well as more secureand comfortable services

EnergyBig Data utilization technologies
Collection/
storage

Search/visualization

Analysis/forecasting

Information© Hitachi, Ltd. 2011. All rights reserved.

13

Information &Telecommunication Systems BusinessInformation Meeting
Effectively Utilizing Big Data
［Contents］

１．Big Data and Effective Use in Society
２．Hitachi’s Strengths and Basic Policy
３．Hitachi Data Systems’ Initiatives
４．Conclusion© Hitachi, Ltd. 2011. All rights reserved.

2-1. Steps for Effectively Utilizing Big Data

New uses
Find/forecast
Search/use
Collection/
storage“Easy searching”“Service creation”“Analysis/
forecasting”“Dataaccumulation”© Hitachi, Ltd. 2011. All rights reserved.

15

2-2. Hitachi’s Strengths (1) Platform Strengths
New uses
Find/forecast
Search/use
Collection/storage“Service creation”“Analysis/forecasting”“Easy searching”“Data accumulation”

Delivering world-class, advanced storage systems
・A powerful, global customer base・Strategic business development with leading U.S. andEuropean customers
・Provision of management systems integrating various data and IT platforms

Manufacturing ability as a manufacturing company to complete social
infrastructure projects. Long building IT systems fused with social
infrastructure, and operational and maintenance expertise.

Joint development with laboratory based on our business strategy© Hitachi, Ltd. 2011. All rights reserved.

16

2-3.

Hitachi’s Strengths (2)IT and Social Infrastructure Technologies
Wide range of applications.
From company information systems to social infrastructure systems

Company business systems

Social infrastructure systems

From construction, operation andmaintenance to manufacturing

Electricity/railways
roads/water…

Industry/distribution/finance/ Communications
public administration

Information system technologies and control system technologies
Virtualization

Large-scale, high-reliability databases

High-speed transaction processing

Security

Simulation and analysis technologies

Control systems middleware

Platforms and components
Information and telecommunications
platforms
Data centers
Servers and storage
Cloud

Control components and power electronics
products

High-speed networks＊EIC： Electricity, Instrumentation, Computer

High-voltage inverters

Control servers
EIC＊ integrated controllers

UPS© Hitachi, Ltd. 2011. All rights reserved.

17

2-4. What is Data Analysis?
Trials to form relationships between “analysis” and “customers’ operations”
Joint operations between mathematical analysis (IT) and determination ofeffectiveness (people)
Leverage Hitachi’s expertise as a manufacturing company
Full-fledged systemconstruction

Big Data Analysis Activities (Trials)
Operational understanding
Data cleansing+
Data pre-processing
data receipt and survey

Customer operations
Customer data

Mathematicalanalysis modeling

ROI and effectivenessevaluation

Large system
implementation

Selection of
optimized algorithms

Creation of analysis sequence matched to customer operations

Utilization of Big Data
processing platform

Operational
understanding(Analysis and business KPIs)

Data analysis process database (Hitachi knowhow)
Big Data analysis platform© Hitachi, Ltd. 2011. All rights reserved.

18

2-5. Initiative Policy in the Big Data Era
Strategic Approach from “INFRASTRUCTURE CLOUD”
to “INFORMATION CLOUD”
New UsesService Creation

Find/forecast
Analysis/forecasting

Search/use
Easy Searching

Collection/
Storage

Data Accumulation■ INFORMATION CLOUD
Making know-how formulated knowledge
collaborated with customers■ CONTENTS CLOUD
Total management of diversified data

■ INFRASTRUCTURE CLOUD
Scalably and effective large amount of data archive© Hitachi, Ltd. 2011. All rights reserved.

192-6. Basic Policy (1)Effectively Utilizing Big Data by INFORMATION CLOUD
Expand the collaboration with advanced customers

・Expand service business utilizing abundant know-how
based on the experiences of building social infrastructure systems
・Implement analysis and accumulation of knowledge
by utilizing know how as a manufacturing company
Implement development and provision of products/services for Big Data
Education

Financial services
Healthcare／medical care

Public administration
Transportation

Manufacturing／distribution

EnergyWater services
Data accumulation

Easy searching

Analysis/forecasting© Hitachi, Ltd. 2011. All rights reserved.

20

2-7. Basic Policy (2)Integration of internal and external wisdom for Hitachi
Expand business in global market: Advanced utilizing Big Data・Implement by Global one teamAggressively implement collaboration with the experts of each industry

・Management/IT consulting/Statictics mathematical principle etc
Jointly develop with laboratory based on our business strategy
Provide Security/IT governance proven by operation in Hitachi Group
internal systems© Hitachi, Ltd. 2011. All rights reserved.

21

2-8. Hitachi Data Systems Corporation (HDS)Business development in over 100 countries and regions worldwide

Established in 1989, headquartered in Santa Clara, California,
U.S.A. (Approx. 5,300 employees as of September 30, 2011)
Customers: 82% of Top 100 companies Fortune Global 1000®
Alliances with over 300 solution vendors
A leader in virtualization technologies based on the delivery of
more than 19,000 controllers

Accounts for approx. 90% of consolidated revenues in thestorage solutions business

Expand from the storage solutions vendor
to the platform solutions vendor© Hitachi, Ltd. 2011. All rights reserved.

22

Information &Telecommunication Systems BusinessInformation Meeting
Effectively Utilizing Big Data
［Contents］

１．Big Data and Effective Use in Society
２．Hitachi’s Strengths and Basic Policy
３．Hitachi Data Systems’ Initiatives
４．Conclusion© Hitachi, Ltd. 2011. All rights reserved.

3-1. HDS: A Company Transformed
 Q2 FY11: 25% y/y growth; Highest revenue quarter
in Hitachi Storage business history! (consolidated and in U.S.$)– 26% 1HFY11 y/y growth– 18% FY10 y/y growth– Eight consecutive record quarters
 Expanded portfolio– Leader in storage virtualization– File and content – fastest growing segment; 100%y/y growth trailing 12 months– Software and services revenue mix – from low 20s
in FY02 to near 50% in FY10
 Recent acquisitions– BlueArc – File & Content– ParaScale – Scale out– Shoden Data Systems – South Africa© Hitachi,© Hitachi,
Ltd.
Ltd.
2011.
2011.
All Allrightsrightsreserved.
reserved.

24

3-2. Consistent, Record-Breaking Growth
HITACHI STORAGE BUSINESS CONSOLIDATED REVENUE RESULTS$1.078B$1.053B $1.046B $1.028B （¥84B）（¥87B） （¥87B） （¥83B） + 25.2% y/y+ 15.2% y/y + 19.0% y/y$914M $882M$861M（¥82B）（¥80B）$804M$779M +4.6% y/y + 6.3% y/y （¥74B） （¥74B）+ 11.0% y/y$709M （¥73B）+ 13.4% y/y（¥69B） -10.5% y/y+ 28.0% y/y-12.0% y/y

Q1

Q2
Q3
FY2009
-3.0% y/y

Q4

Q1

Q2
Q3
FY2010+18.1% y/y

Q4

Q1
Q2
1H FY2011+26.0% y/y© Hitachi, Ltd. 2011. All rights reserved.

25

3-3. HDS State of the Business
TOTAL HDS CONSOLIDATED REVENUES: US $1.078B (Q2); US$2.092B (H1)Q2 FY11
Y/Y% GROWTH

H1 FY11Y/Y%
GROWTH

25%

26%

AMERICAS

21%

15%

EMEA

30%

39%

APAC (excluding Japan sales)

36%

40%

High 20s

Mid 20s

High 40s

Mid 40s

Mid single digits

Mid single digits

High 80s

Low 90s

SOFTWARE**

High 20s

Low 40s

SERVICES

Mid 20s

Mid 20s

KEY METRICSHITACHI CONSOLIDATED REVENUEHDS Y/Y% GROWTH IN FOLLOWING AREAS*:

HARDWARE**
ENTERPRISE STORAGE**
MODULAR STORAGE
FILE & CONTENT (includes storage drag)ALL NUMBERS BASED ON ACTUAL F/X RATES*HDS UNCONSOLIDATED BASIS**THE HARDWARE AND SOFTWARE NUMBERS DO NOT INCLUDE ANY OEM REVENUE © Hitachi, Ltd. 2011. All rights reserved.

26

3-4. The World’s Data and Information Challenge• An Information-Centric World, Governments, Enterprises, Organizations, Person,
Consumer…Creating, exchanging, consuming, enhancing data
• The world had 486 exabytes of data in 2008. Doubling in 18 months.
• Unstructured data is growing at 10x structured data
• By 2014 there will be 1 billion applications• E-discovery and search across all applications, media, archives, devices…

• A world of Analytics to turn discovered data into usable information!
• Management and governance of data for 10, 20, 50, 100 years, more, forever?
• Must repurpose data every 5 years for new applications & devices? Billions,trillions of objects?

• Backup-less vs. Archive data…always on, always available, always ready.
• Cloud of content and information

Scale• Scale…Scale….Scale…Scale…

© Hitachi, Ltd. 2011. All rights reserved.

27

3-5. The Challenge
INFORMATION ANYWHERE,ANYTIME, ALL THE TIME… FOREVER ALL DISCOVERABLE
AND SEARCHABLE
 INDEPENDENT OFAPPLICATION INDEPENDENT OF
MEDIA
 INTEGRATED AND
MEANINGFUL GOVERNEDFOREVER© Hitachi, Ltd. 2011. All rights reserved.

28

HDS Strategy:
3-6. The Path to the Information Center
INFORMATION
CLOUD

Analytics
Integration

Business intelligence
Big data

Information Virtualization

CONTENT
CLOUD

Search, discover, integrate
Text
independently of applications

Content on demandArchiving as a service

Content Virtualization

INFRASTRUCTURE
CLOUD

Virtualization, mobility
Integrated management
Data center convergence

Infrastructure andplatform as a service

Data, Storage, File, Server, Network Virtualization
SINGLE VIRTUALIZATION PLATFORM FORINFRASTRUCTURE, INFORMATION AND CONTENTInfrastructure

Data Intelligence

Information Analytics

 Converged solution stacks

 Data lifecycle management

 Analytical search Converged platform for storage
and compute Index, search, and discover
independent of application

 Derived data integration

 Heterogeneous virtualization

 Integrated meta data
management

 Data analytics independent ofapplication and media

Results in cost savings, efficiency, seamless access to information
for business insight and competitive advantage© Hitachi, Ltd. 2011. All rights reserved.

29

3-7. The Infrastructure Cloud

INFRASTRUCTURE
AND PLATFORM AS ASERVICERAPID, ON-DEMANDDEPLOYMENTELASTIC SCALABILITY
FOR PRIVATE, HYBRIDAND PUBLIC© Hitachi, Ltd. 2011. All rights reserved.

30

3-8. Inside the Content CloudDISCOVERY & SEARCHACROSS APPLICATIONSCONTENTCORE

CONTENT & DATAVIRTUALIZATIONCONTENT INDEPENDENT OFAPPLICATION & MEDIA

MULTI APPLICATION INDEXING
AUTOMATED TIERING / ARCHIVINGCONTENT REPURPOSINGDATA LIFECYCLE MANAGEMENTVIRTUAL CONTAINERIZATIONCENTRALIZEDGOVERNANCEMASSIVE SCALABILITY &PERFORMANCE

SSD
SAS
SATA
ARCHIVE

3D© Hitachi, Ltd. 2011. All rights reserved.

31

3-9. Healthcare Content Cloud in Use Today
KLINIKUM WELS SOLUTION ARCHITECTUREADMISSION

X-RAY

LAB

PHYSICIANDEPARTMENTS

INFORMATION CLOUDHOSPITALHEALTH PORTALMETADATA LAYERCONTENT CLOUDINFRASTRUCTURE CLOUDSINGLE VIRTUALIZATION PLATFORM

CONTENT VIRUTALIZATION LAYERSEARCH, INDEXING, DATA LIFECYCLE MGMTSTORAGE & DATA VIRTUALIZATION LAYERSECONDARY
SITE© Hitachi, Ltd. 2011. All rights reserved.

32

Imagine the Possibilities – Access to
3-10. Integrated Patient Data
ACROSS
MULTIPLE
APPLICATIONS

Kent

Susan

01/01/64

989756-010164

10 years
5 years

Santa Clara
California

30 years… 

TIME




95050

• RADIOLOGY LAB• APPOINTMENTS• HISTORY

08/05/89

Generations of applications
and media
Cumulative effects ofgrowing data
Moving petabytes of data –lifecycle management
Repurpose billions totrillions of objects
Protect, delete billions totrillions of objects
Discover and correlate
meaningful trends andanalytics© Hitachi, Ltd. 2011. All rights reserved.

33

3-11. Scalable Content Cloud – Today!

HDS DATA ANALYTICS,
BLUEARC + HDSFILE AND CONTENTMOBILITY, INTELLIGENTTIERING AND HOLISTICSEARCH

BUSINESS INTELLIGENCE,MASSIVE SCALE-OUT
LEVERAGE PARASCALEINFORMATION CLOUDCONTENT CLOUDINFRASTRUCTURE CLOUDSINGLE VIRTUALIZATION PLATFORM FORINFRASTRUCTURE, INFORMATION AND CONTENT© Hitachi, Ltd. 2011. All rights reserved.

34

An Integrated Hitachi Vision:
3-12. Big Data / Analytics

FINANCE
RAILWAY

PUBLIC

DISTRIBUTION

MEDICAL

ENTERPRISE SYSTEMS

ELEC. POWER

TRAFFICSECURITYSOCIAL INFRASTRUCTURE INTELLIGENCEHITACHI, LTD. CLOUD SOLUTION(SERVICE DELIVERY)INFORMATION
CLOUD
Information Virtualization
CONTENTText
CLOUD
Content Virtualization
INFRASTRUCTURE
CLOUD
Data, Storage, File, Server, Network Virtualization

BIG DATA MANAGEMENTMACHINE TO MACHINE NETWORKEQUIPMENT MANAGEMENTCOOPERATION WITHCONTROL SYSTEMS© Hitachi, Ltd. 2011. All rights reserved.

35

3-13. HDS Business Execution of the Vision

STRONG GLOBALREVENUE GROWTH

TRUSTED BY 82%
OF THE TOP 100
FORTUNE GLOBAL 1000®

INTEGRATED R&D
INVESTMENTS

STRONGINTEGRATIONACROSS HITACHICOMPANIESKEY 2011
ACQUISITIONSRESPECTED BUSINESSCULTURE© Hitachi, Ltd. 2011. All rights reserved.

36

3-14. HDS Growth Strategy
Business Model Shift
to Software andServices

Invest aggressively in software intellectual property
and portfolio depth

Leveraging ourPartnerships

Strengthen channel, alliance and systems integrator
programs

Market andGlobal Expansion

 Integrated strategy for structured andunstructured data including Big Data, cloud,managed services
 Vertical markets (e.g. Health and Life Sciences,Telco, Media, Entertainment) Strong emerging market growth in BRICs andAfrica© Hitachi, Ltd. 2011. All rights reserved.

37

Revenue Targets:
3-15. Storage Solution Business（billion$）

6.0(¥450billion)

6

5.0

5
4

3.9
3.3

4.4

(¥400billion)(¥335billion)(¥322billion)(¥304billion)

3
2
1
0

FY09
(Actual)

FY10(Actual)FY11(Forecast)

FY15(Target)[¥93/$][¥83/$][¥77/$][¥80/$][¥75/$]<As of Jun. 2011> <New Target>© Hitachi, Ltd. 2011. All rights reserved.

38

Information &Telecommunication Systems BusinessInformation Meeting
Effectively Utilizing Big Data
［Contents］

１．Big Data and Effective Use in Society
２．Hitachi’s Strengths and Basic Policy
３．Hitachi Data Systems’ Initiatives
４．Conclusion© Hitachi, Ltd. 2011. All rights reserved.

4-1. Conclusion
FY2015Business
Targets

Revenues: ¥2.3 trillion / Operating income ratio: 8%
Overseas revenues: ¥800.0 billion / Overseas revenue ratio: 35%

Strengthen domestic businesses

Expand global businesses

Fields of future focus■Fused businesses■Highly reliable cloud businesses■Businesses for effectively utilizing Big Data

© Hitachi, Ltd. 2011. All rights reserved.

40

Conclusion: Driving Continuing Growth in

4-2. the Information & Telecommunication Systems Business
Effectively Utilizing Big Data

Create a new world with Big Data
INFORMATION CLOUD
Accumulate, integrate and efficiently utilize large
volumes of diverse data

ONE PLATFORM FOR ALL DATACONTENT CLOUD&INFRASTRUCTURE CLOUD© Hitachi, Ltd. 2011. All rights reserved.

41

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 levelsof 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 against 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 other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals,
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 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 andother 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 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 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 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 othermaterials published by Hitachi.

© Hitachi, Ltd. 2011. All rights reserved.

42

u
V
A
L
U
E
ロ
© Hitachi, Ltd. 2011. All rights reserved.

HITA
CHI／
Inspire the© Hitachi, Ltd. 2011. All rights reserved.