FOR IMMEDIATE RELEASE

Strengthening the Structure to Accelerate the Hitachi Group’s
Digital Business GloballyHitachi Launches Hitachi Digital and GlobalLogic Japan to Accelerate Lumada's
Global GrowthTokyo, April 1, 2022 – Hitachi, Ltd. ("Hitachi") announced today that it has reorganized the IT
sector, which had been playing the core role of Lumada*1, into the Digital Systems & Services
sector in its upcoming Mid-term Management Plan in order to accelerate the digital businessof the Hitachi Group on a global basis and further strengthen collaboration with other sectors
including the Green Energy & Mobility sector and the Connective Industries sector. To
accomplish this, Hitachi has strengthened its structure by launching two new organizations asof April 1.
The first, for the global market, Hitachi Digital, *2 is launched in North America, where the digitaldomain is growing rapidly. Hitachi Digital will also strengthen cooperation with Hitachi Energy,Hitachi Rail, and other companies to formulate and promote a global digital strategy across theHitachi Group.
The second, for the Japanese market, where further digital domain growth is expected in thefuture, GlobalLogic Japan, Ltd. ("GlobalLogic Japan" *3), is established in Japan. GlobalLogic
Japan will accelerate the adoption of customers’ Digital Transformation (DX) leveraging
Hitachi's strong customer base, and GlobalLogic Inc.'s (“GlobalLogic” *4) Design-led DigitalEngineering capabilities.
Through these efforts, Hitachi will strengthen its global digital business, and accelerate
Lumada expansion through the growth by DX, furthering its transformation into a global digitalcompany.
*1: Lumada is the name of Hitachi's advanced digital solutions and services for turning data into insights that drive digitaltransformation of social infrastructure.
*2: Hitachi Digital LLC was renamed from Hitachi Global Digital Holdings LLC with expanding the role and functions of Hitachi
Global Digital Holdings, a corporate organization that had previously overseen the digital business of the IT sector.
*3: GlobalLogic Japan is established in Japan as a wholly owned subsidiary of GlobalLogic.
*4: GlobalLogic is a business subsidiary of Hitachi Digital LLC and was acquired by Hitachi last July.
Hitachi News Release (July 14, 2021) https://www.hitachi.com/New/cnews/month/2021/07/f_210714.pdf

Advancing Hitachi’s Global Digital Strategy
1. Strengthening the Global Digital Business with the Launch of Hitachi Digital
In the global market starting from North America, Hitachi Digital will fulfill the growing DX needs
expected in social infrastructure fields such as energy, transportation, and industrial &manufacturing. Hitachi Digital will make rapid locally-led decisions and lead commercializationin the following mission.
(1) Lead the Formulation and Execution of a Digital Growth Strategy by Strengthening
Collaboration Across the Hitachi Group in OT x IT x Products
Hitachi Digital will strengthen collaboration with Hitachi's global bases in the energy,transportation, and industrial & manufacturing fields, formulate digital strategies related toGreen Transformation (GX), and drive the commercialization of strategic themes acrossthe Hitachi Group in the OT x IT x Products.
Specifically in the energy sector, the One Hitachi task force of Hitachi Energy, Hitachi
Vantara, and GlobalLogic have been working to provide the Lumada Asset Management*5
1 / 4

solution which enables efficient operation of infrastructure assets. They are also
developing next-generation green digital infrastructure businesses, including the provisionof maintenance and the development of digital products and services leveraging design &technology expertise by GlobalLogic. In the mobility field, GlobalLogic is making asignificant contribution with its design and digital engineering capabilities for electric busesin Europe, and is providing services such as agile development of core applications, inorder to promote zero-carbon solution business through the decarbonization program.
Including these ongoing projects, Hitachi Digital will coordinate the One Hitachi task force
and continue to lead local initiatives to bring together projects across the Hitachi Groupand drive them toward commercialization.
(2) Accelerate Global Digital Growth by Leveraging the Lumada’s Platform and Ecosystem
Hitachi Digital will develop and leverage its business infrastructure to acceleratecontinuous global digital growth.
Specifically, the Lumada platform and ecosystem that has been successful in Japan suchas the Lumada Alliance Program*6, a co-creation program with customers and partners,
the Lumada Innovation Hub*7, a service and co-creation space for realizing innovation,and the Lumada Solution Hub*8, which connects Hitachi and its partners’ digital solutions
and technologies, will be deployed globally to quickly provide value based on their knowhow and achievements.
*5: Hitachi News Release (February 23, 2021) https://www.hitachi.com/New/cnews/month/2021/02/210224a.html*6: Hitachi News Release (November 4, 2020) https://www.hitachi.com/New/cnews/month/2020/11/201104.html*7: Hitachi News Release (March 22, 2021) https://www.hitachi.com/New/cnews/month/2021/03/210322a.html*8: Hitachi News Release (March 18, 2019) https://www.hitachi.com/New/cnews/month/2019/03/190318.html

2. DX Promotion in the Japanese Market with the Launch of GlobalLogic Japan
GlobalLogic Japan has been established to address the growing DX needs of the Japanesemarket by deploying GlobalLogic's Design-led Digital Engineering capabilities to support DXfor Japanese customers.
GlobalLogic has approximately 25,000 professionals working in design studios andengineering centers around the world, and has a wealth of DX experience and capabilities
developed through work with more than 400 customers worldwide. Hitachi has large
community of existing customers in the Japanese market and a track record of building highly
reliable mission-critical systems. By combining these strengths into a powerful approach,
GlobalLogic Japan will provide Design-led Digital Engineering services to Japanese customers
to help them transform their businesses to improve user experiences and generate newrevenue streams.
Specifically, GlobalLogic and Hitachi's sales forces, who are well versed in the Japanesemarket, will work together to offer optimal services for Japanese customers. The team will
seamlessly promote collaboration from the upstream process through to execution with
GlobalLogic's professionals who are promoting collaborative creation activities with customers
around the world, and Hitachi's digital talents who have extensive experience in dealing withJapanese customers. By leveraging Lumada Innovation Hub Tokyo, GlobalLogic Japan will beable to provide GlobalLogic's DX services in a form that meets the needs and characteristics
of Japanese customers in a short time.
In the area of digital talent development, GlobalLogic has a unique DX professional
development program which enables the rapid enablement and deployment of capable digitalengineering workforce, from recruitment to project assignment. In the future, Hitachi andGlobalLogic will rotate team members between the two companies in order to strengthen
2 / 4

human talent development. This system will allow the timely deployment of high-quality talent
in response to customers' needs.
Through these efforts, GlobalLogic Japan aims to become a leading digital engineering
company in Japan by helping customers realize DX.
Background
Investment in DX is growing at an accelerating pace around the world, and according toresearch firm IDC, the DX market is expected to grow to $2.8 trillion by 2025, more than double
its 2020 level. *9 On the other hand, there are differences in the progress of DX in different
regions, and according to the World Digital Competitiveness Ranking by Swiss-based businessschool IMD (International Institute for Management Development), the U.S. ranks first*10 andJapan ranks 28th*11 out of 64 countries. Further growth in the Japanese DX market is expected,
with a growth rate of 15.3%*12 from 2021 to 2025.
*9: Source: New IDC Spending Guide Shows Continued Growth for Digital Transformation as Organizations Focus on Strategic
Priorities
Global spending on the digital transformation (DX) of business practices, products, and organizations is forecast to reach $2.8
trillion in 2025, more than double the amount allocated in 2020.
https://www.idc.com/getdoc.jsp?containerId=prUS48372321*10: Source: IMD World Digital Competitiveness Ranking 2021 p172
https://www.imd.org/centers/world-competitiveness-center/rankings/world-digital-competitiveness/*11: Source: IMD World Digital Competitiveness Ranking 2021 p104
https://www.imd.org/centers/world-competitiveness-center/rankings/world-digital-competitiveness/*12: Source: Worldwide Digital Transformation (DX) Trends p20
Worldwide Digital Transformation Opportunity = $1.53T in 2021, Reaching $2.81T by 2025
https://www.idc.com/getdoc.jsp?containerId=US48384721

About Hitachi Digital LLC
Company nameInauguration Date
Head office
CEOInvestment rate
About GlobalLogic Japan, Ltd.
Company name
Establishment Date
Head office
CEOInvestment rate
Business description

Hitachi Digital LLC
April 1, 2022
Santa Clara, California, U.S.A.
Jun Taniguchi
Hitachi America Limited: 100%

GlobalLogic Japan, Ltd.
April 1, 2022
Hitachi Omori 2nd Bldg, 6-27-18 Minami-Oi,
Shinagawa-ku, Tokyo
Shashank SamantGlobalLogic: 100% (through subsidiaries)
Design and Product/
Digital Engineering Services- End About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, contributes to a sustainable society
with a higher quality of life by driving innovation through data and technology as the Social
Innovation Business. Hitachi is focused on strengthening its contribution to the Environment,
the Resilience of business and social infrastructure as well as comprehensive programs toenhance Security & Safety. Hitachi resolves the issues faced by customers and society acrosssix domains: IT, Energy, Mobility, Industry, Smart Life and Automotive Systems through its
proprietary Lumada solutions. The company’s consolidated revenues for fiscal year 2020
(ended March 31, 2021) totaled 8,729.1 billion yen ($78.6 billion), with 871 consolidated
subsidiaries and approximately 350,000 employees worldwide. For more information on
3 / 4

Hitachi, please visit the company's website at https://www.hitachi.com.

4 / 4

-------------------------------------------------------------------------------------------------------------------

Information contained in this news release is current asof the date of the press announcement, but may be subject
to change without prior notice.
-------------------------------------------------------------------------------------------------------------------