FOR IMMEDIATE RELEASE

Hitachi to Reorganize Infrastructure Systems BusinessTokyo, November 25, 2013 --- Hitachi, Ltd. (TSE: 6501, “Hitachi”) today
announced that it will reorganize the infrastructure systems business
effective from April 1, 2014 with the intention of enabling swift responses
to the global changes in business models and services, and to various
needs centered on social infrastructure.
Specifically, Hitachi will reorganize the functions of the Infrastructure
Systems Company, one of its in -house companies, into four businessfields: the urban and energy solution s business, the water environment
solutions business, the industrial plant s and solutions business and thecomponents business. In addition, Hitachi will concentrate businessresources by taking actions such as reorganizing and integrating related
businesses, including Group companies in order to strengthen theplatforms of the urban and energy solution s business and the industrial
plants and solutions business. Through these measures, Hitachi will build
a business framework that will enable swift responses to dynamic market
changes and diversifying needs in the infrastructure systems field, as it
works to maximize the value delivered to customers. Furthermore, Hitachi
will strive to enhance global competitiveness by expanding and upgrading
the infrastructure systems business, with the aim of attaining themanagement targets set forth in the 2015 Mid -term Management Plan.
In recent years, investment in social and industrial infrastructure systems
has increased on a global scale. In emerging countries, rapid population
growth, economic expansion and other developments are driving muchhigher demand for social infrastruc ture such as large-scale urban
development, energy, transportation and water systems, and industrial
infrastructure including industrial parks and resource development. At thesame time, developed countries need to construct next -generation social
infrastructure based on information technology (IT) to create low -carbon,
sustainable societies, and to address aging social infrastructure.

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To cater to these needs, Hitachi is accelerating global development of its
Social Innovation Business by enhancing its ability to propose and execute
solutions that will address issues facing society and customers. To thisend, Hitachi is optimizing business operation management in each of its
business domains. As part of this drive, in the infrastructure systems
business, Hitachi merged its wholly owned subsidiary Hitachi Plant
Technologies, Ltd. in April 2013. Hitachi Plant Technologies had been
globally engaged in various businesses, including manufacturing of large
pumps, compressors and other components, EPC * 1 for water treatment
systems, chemical and pharmaceutical plants and air conditioning systems.
Moreover, in October 2013, Hitachi transferred its construction businessfor power plants, transportation systems and industrial plan ts andintegrated them into its wholly owned subsidiary Hitachi Plant Engineering& Services, Ltd. (renamed as Hitachi Plant Construction, Ltd.). W ith thisstep,

Hitachihaslauncheda

new company thatpossesses

bothconstruction engineering and construction capabilities.
*1 EP C： Engineering , Pr ocurement and Const ruct ion

The reorganization announced today will build on these measures, whileachieving far-reaching structural reforms through the Hitachi Smart
Transformation Project, which is aimed at strengthening the businessstructure. In so doing, Hitachi will establish platforms that can deliver
one-stop, total solutions spanning components, systems, EPC, services
and other areas where it is strong in the infrastructure systems business.
The overview of the series of reorganization is as follows.
1.

Establishamarket-oriented

management

systemthroughreorganization of the Infrastructure Systems Company into fourbusiness fields
Effective from April 1, 2014, Hitachi will reorganize the structure of its
Infrastructure Systems Company into four business fields, with the view toestablishing a market-oriented management system around customer andmarket needs. Specifically, the four business fields will co nsist of theurban and energy solutions business, which will primarily provide- more --3-

information and control solutions for the power, transportation and urban
infrastructure

fieldsandenergymanagement

systems;

the

water

environment solutions business, which w ill primarily provide

water

treatment systems, monitoring and control systems and other solutions;the industrial plants and solutions business, which will primarily provide
industrial plants, information and control solutions for industrial fields, andsecurity systems; and the components business, which will provide
inverters and compressors as manufacturing functions in support of theaforementioned solutions. Through the integrated management of thesestrongly interlinked businesses, Hitachi will fortify its total solutions
capabilities and address the management issues of customers and theirdiversifying needs as quickly as possible.
2. Enhance the platform of the urba n and energy solutions business
Hitachi aims to concentrate and strengthen the information and control
solution business for the power and transportation fields, which iscurrently split between two Group companies. Accordingly, on April 1,
2014, Hitachi will set up a management unit for the information and control
solution business under the urban and energy solution s business. Hitachi
will also concentrat e resources from divisions engaged in the development
and design of information and control systems for the power andtransportation fields at Hitachi Information & Control Solutions, Ltd.
(“Hitachi Information & Control Solutions”) and Ibaraki Hitachi Information
Service Co., Ltd. (“Ibaraki Hitachi Information Service ”). By unifying
management, Hitachi will bolster the information and control solution
business’ integrated platform ranging from systems development anddesign to manufacturing and services, in an effort to drive businessexpansion.
3. Enhance the platform of the industrial plants and solutions
business(1) Reorganize the information and control solution for industrial fields ,security system business and the printed -circuit board manufacturingbusiness through company split and merger etc.

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On April 1, 2014, Hitachi will reorganize and concentrate the informationand control solution for industrial fields security system business and theprinted-circuit board manufacturing business. These businesses are
currently spread out across Hitachi and five Group companies.
Specifically, Hitachi will transfer and integrate the following businesses
into Hitachi Information & Control Solutions by way of company split: thesecurity systems development and design business and the printed -circuit
board

manufacturingbusinessof

Hitachi’s

Infrastructure

Systems

Company; the printed-circuit board manufacturing business and security
systems design and manufacturing business of Hitachi Mito Engineering
Co., Ltd. (“Hitachi Mito”) and Mito Engineering Service Co., Ltd. (“MitoEngineering”). (For more information, please see Attachment 1 for an“Outline of the Company Split”) Furthermore, Hitachi Information & Control
Solutions will merge the following two companies. The two companies are
Hitachi Advanced Digital, Inc. (“Hitachi Advanced Digital”), which isengaged in the embedded systems development and design business, andIbaraki Hitachi Information Servi ce, which is engaged in the informationand control system development and design business. In an effort to unify
management, Hitachi will centralize resources from divisions engaged in
the development and design of information and control systems forindustrial fields at Hitachi’s Infrastructure Systems Company to the newcompany for which Hitachi Information & Control Solutions will be thesuccessor and the surviving company.
Through these measures, Hitachi will build an integrated platform ranging
from systems development and design to embedded software andhardwaredevelopment,

manufacturing

andservices

relatedtotheinformation and control solution for industrial fields and security systembusiness. At the same time, Hitachi will streamline the printed -circuitboard manufacturing business by concentrating business resources, withthe view to driving business expansion.

(2) Reorganize the air conditioning systems business in Japan through a
company split- more --5-

On April 1, 2014, Hitachi will transfer and integrate the air conditioning
systems construction

business

in

Japan

of

Hitachi’s

Infras tructure

Systems Company into Hitachi Plant Services Co., Ltd. (“Hitachi Plant
Services”) by way of company split in order to strengthen the air
conditioning systems business in Japan (For more information, please see
Attachment 2 for an “Outline of the Company Split”). Through thesemeasures, Hitachi will unify the management of its air conditioning
systems construction functions and Hitachi Plant Services’ service andmaintenance functions, with a view to driving business expansion.

New Structure of Hitachi’s Infrastructure Systems Company (effectivefrom April 1, 2014)
Infrastructure Systems Company

Urban and Energy Solutions Business○Information and control solutions for power,transportation and urban infrastructure fields○Energy management systems etc.

Water Environment Solutions Business○Water treatment systems○Monitoring and control systems etc.

Industrial Plants and Solutions Business○Industrial plants○Information and control solutions for industrial fields○Security systems etc.

Components Business○Inverters○UPS*2○Compressors etc.

*2 U PS： Unint erruptible P o wer Sup ply- more --6-(Reference) Consolidated Business Forecasts for the Year Ending March
31, 2014 (announced on October 29, 2013) and Consolidated
Operating Results for the Previous Fiscal Year
(Millions of yen)
Revenues

Operating
Inc om e

Inc om e Before
Inc om e Taxes

Net Inc om e
Attributable to
Hitachi, Ltd.
Stock holders

Cons olidated
Business
Forecas ts for
Fisc al 2013
(Year ending
Marc h 31, 2014)

9,200,000

500,000

425,000

210,000

Cons olidated
Operating Resultsfor Fiscal 2012
(Year ended Marc h31, 2013)

9,041,071

422,028

344,537

175,326- more --7-

Attachment 1

Outline of Company Split Related to Information and Control
Solution Business for Industrial Fields, Security System
Business and Printed-circuit Board Manufacturing Business
Certain disclosures and details have been omitted as these transaction
are a company split transferring businesses from Hitachi and its wholly
owned subsidiaries to its wholly owned subsidiary.
1. Outline of Company Split(1) Company Split Schedule
E xecution of Compan y S plit Agreement

January 2014 ( Tentati ve )Scheduled Compan y Spli t Date (Effecti ve Date)

April 1, 2014 ( Tentati ve )(Note) The com pan y s plit is deem ed to be a sim ple abs orption -t ype com pan y s plit at
Hitachi, purs uant to Artic le 784, Paragraph 3 of the Com panies Act of J apan.
Therefore, Hitachi does not plan to c onvene a s hareholders' m eeting to obtainappr oval of the com pan y s plit agreem ent.

(2) Company Split Method
These are absorption-type split in which Hitachi, Hitachi Mito and Mito
Engineering are the transferring companies and Hitachi Information &Control Solutions is the successor company.
(3) Handling of Stock Acquisition Rights and Bonds with Stock
Acquisition Rights Accompanying the Company Split
Hitachi, Hitachi Mito and Mito Engineering have no outstanding stockacquisition rights or bonds with stock acquisition rights.
(4) Capitalization Changes Accompanying the Company Split
The company split will result in no change in capitalization of Hitachi,
Hitachi Mito and Mito Engineering.
(5) Outlook on Performance of Obligations
Obligations of Hitachi Information & Control Solutions becoming due after
the effective date of the company split are anticipated to be duly
performed.

- more --8-(6) Others
Other details of the company split will be announced when they are
determined.
2. Profile of the Parties of the Company Split
Hitachi, Ltd.
(Transferr ing
Com pan y)(1) Nam e

Hitachi Mito
Engineering Co.,
Ltd. (Transferring
Com pan y)

6-6, Marunouc hi 1070 Ichige,
1-Chom e,
Hitachinak a-s hi,(2) Head Offic e
Chi yoda-k u,
Ibarak i
Tok yoHir oak i
Tatsuhik o
Nak anis hi,
Tak ahas hi,(3)
Pr esident
Representative
Representative
Direc tor andPresident- more -MitoEngineering
Servic e Co.,Ltd.
(Transferring
Com pan y)

HitachiInform ation &Control
Solutions, Ltd.
(Success or
Com pan y)1070 Ichige,
Hitachinak a-s hi,
Ibarak i

5-1-26,
Om ik a-cho,
Hitachi-s hi,
Ibarak i
Mits uoTak ayam a,
President
andCEO

Tatsuhik o
Tak ahas hi,
Representative
Direc tor andPresident

-9-(4) Bus iness(5) Capital

Developm ent,
Businessm anufactur e and contracting andsales of pr oduc ts support ofand pr ovis ion of des ign,
ser vice acr oss 10 inspection andsegm ents:
m anufacturing ofInform ation &elevators andTelec om m unicati escalators ,on S ystem s,
des ign,
Power S ys tem s, m anufacturing,Socialinspection andInfras tr uctur e & support of railwa y
Industr ials ystem s, des ign,
S ystem s,m anufacturing,
Elec tr onic
contracting andS ystem s &support ofEquipm ent,
building s ys tem s,Constr uc tionback -offic e work
Mac hiner y, High contracting andFunctional
support related toMaterials &inform ation
Com ponents,s ystem s,
Autom otive
production
S ystem s, Digital engineering, andMedia &
m aterial
Cons um er
m anagem ent,
Pr oducts , Others production and(Logistics andsale of
Other ser vic es)
advertis ing andand Financial
other m aterials ,Ser vic es
des ign,m anufacturing
and s ale of platedcirc uitcom ponents ,des ign,m anufacturing
and installationof electronic
devic es for crim e
prevention
m onitoring video
cam era s ys tem s
and interactive
whiteboards

458,790 m illion
yen ( As of
Septem ber 30,
2013)

Des ign andm anufacturingof elevators,
escalators andbuildings ystem s, des ign
andm anufacturingof railwa ys ystem s, work
related to
inform ations ystem s,
productionengineering,inspection andm aterialm anagem ent,
des ign,m anufacturing
and sale ofplated c irc uit
com ponents ,des ign,m anufacturing
and installationof electronic
devic es forcrim eprevention
m onitoring
video c am eras ystem s andinterac tive
whiteboards,
work er dis patch
bus iness

330 m illion yen
30 m illion yen(As of Septem ber (As of30, 2013)
Septem ber 30,
2013)(6) Es tablished Februar y 1, 1920 Jul y 1, 1973

- more -Februar y 1,
2001

Developm ent
and des ign of
inform ation
control s ystem s
for soc ial
infrastructureand generalindustrial
applications ,variousinform ations ystem s andsolutionsbus iness

2,270 m illionyen(As of
Septem ber 30,
2013)
April 1, 2006

- 10 -

(7) Num ber of
iss uedshar es

4,833,463,387(As of Septem ber
30, 2013)

464,000(As of
Septem ber 30,
2013)

600
(As of
Septem ber 30,
2013)

4,540,000(As of
Septem ber 30,
2013)(8) Fisc al
year- end

Marc h 31

Marc h 31

Marc h 31

Marc h 31

Hitac hi Mito
Engineering
Co., Ltd. 100%

Hitachi, Ltd.
100%(9) Major
shareholders
andshareholding

The Mas ter Trus t
Hitachi, Ltd.
Bank of J apan, Ltd. 62.5%(Trust Acc ount)Hitac hi Building
6.35%
S ystem s Co.,
Japan Trus tee
Ltd. 37.5％
Ser vic es Bank , Ltd.
(Trust Acc ount)
5.29%
Hitachi Em plo yees'
Shar eholding
Ass ociation 2.39%
Japan Trus tee
Ser vic es Bank , Ltd.
(Trust Acc ount 9)
2.19%
Nippon LifeIns ur anc e
Com pan y 1.98%(As of Septem ber
30, 2013)(10) Financ ial c onditions and bus iness res ults for the m ost recent fiscal year
(Millions of yen unless other wis e s pec if ied)
3,179,287
1,965
189
14,012
Net assets(Cons olidated) (Unc onsolidated) (Unc onsolidated) (Unc onsolidated)
9,809,230
4,465
1,113
36,508
Total ass ets(Cons olidated) (Unc onsolidated) (Unc onsolidated) (Unc onsolidated)
Net assets per
431.13
4,236.77
316,530.95
3,086.40
1
share ( yen) *(Cons olidated) (Unc onsolidated) (Unc onsolidated) (Unc onsolidated)
9,041,071
7,410
4,288
47,013
Revenues(Cons olidated) (Unc onsolidated) (Unc onsolidated) (Unc onsolidated)
Operating
422,028
168
74
3,431
incom e(Cons olidated) (Unc onsolidated) (Unc onsolidated) (Unc onsolidated)- more -- 11 -

261
75
3,506
(Unc ons (Unc onsolidated) (Unc onsolidated)
olidated)
175,326
169
46
2,306
*3
Net incom e(Cons olidated) (Unc onsolidated) (Unc onsolidated) (Unc onsolidated)
Net incom e per
37.28
364.4577,190.98
508.093
share ( yen) *(Cons olidated) (Unc onsolidated) (Unc onsolidated) (Unc onsolidated)*1 Sinc e Hitac hi has been adopting U.S. acc ounting s tandards , this figure represents
stock holders ’ equit y per shar e.
*2 Sinc e Hitac hi has been adopting U.S. acc ounting s tandards , this figure represents
incom e bef ore inc om e tax es.
*3 Since Hitachi has been adopting U.S. acc ounting s tandards , thes e figures repres ent
net incom e attr ibutable to Hitachi, Ltd. stock holders and net incom e attributable to
Hitachi, Ltd. stock holders per s ha re bas ic, respec tivel y.
Ordinar y2
incom e*344,537(Cons olidated)

3. Overview of the Business to Be Transferred(1) Business of the Business to Be Transferred
Hitachi: Security systems development and design and printed-circuits
board manufacturing
Hitachi Mito: Printed-circuits board manufacturing and security systems
design and manufacturing
Mito Engineering: P rinted-circuits board manufacturing and security
systems design and manufacturing(2) Others
Other details concerning the business to be transferred will be announced
when they are decided.
4. Status of Succeeding Company After Transfer(1) Nam e(Not yet determ ined)(2) Head Offic e(Not yet determ ined)(3) Repr es entative(Not yet determ ined)(4) Bus inessInform ation and c ontrol solutions and s ec urit y s ys tem s
including indus trial solutions , em bedded -s ystem sengineer ing, s ecurit y-related c om ponents, and s ys tem
engineer ing; m anufac turing of printed -c irc uit board andsecur it y-related c om ponents(5) Capital(Not yet determ ined)(6) Fisc al year - end

Marc h 31- more -- 12 -

5. Status of Hitachi After the Company Split
There will be no change in the company name, head office location,
representative’s position or name, business activities, capital or fiscal
year of Hitachi due to the company split.
6. Outlook
The company split will have no impact on the consolidated operating
results of Hitachi.
7. Others
Hitachi Information & Control Solutions will merge Hitachi Advanced
Digital and Ibaraki Hitachi Information Service on April 1, 2014.

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Attachment 2

Outline of Company Split Related to Air Conditioning
Business in Japan
Certain disclosures and details have been omitted as this transaction is acompany split transferring businesses from Hitachi to its wholly owned
subsidiary.
1. Outline of Company Split(1) Company Split Schedule
E xecution of Compan y S plit Agreement

January 2014 ( Tentati ve )Scheduled Compan y Spli t Date (Effecti ve Date)

April 1, 2014 ( Tentati ve )(Note) The com pan y s plit is deem ed to be a s im ple absorption -t yp e c om pan y split,
purs uant to Ar ticle 784, Paragraph 3 of the Com panies Act of Japan. Therefore,
Hitachi does not plan to convene a s hareholders ’ m eeting to obtain approval forthe c om pan y s plit agr eem ent.

(2) Company Split Method
This is a company split in which Hitachi is the transferring company and
Hitachi Plant Services is the successor company.
(3) Handling of Stock Acquisition Rights and Bonds with Stock
Acquisition Rights Accompanying the Company Split
Hitachi has no outstanding stock acquisition rights or bonds with stockacquisition rights.
(4) Capitalization Changes Accompanying the Company Split
The company split will result in no change in capitalization of Hitachi.
(5) Outlook on Performance of Obligations
Obligations of Hitachi Plant Services becoming due after the effective dateof the company split are anticipated to be duly performed.
(6) Others
Other details of the company split will be announced when they are
determined.

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2. Profile of the Parties of the Company Split(1) Nam e

Hitachi, Ltd. (Transf erring
Com pan y)

Hitachi Plant Servic es Co., Ltd.
(Success or Com pany)(2) Head Offic e

6-6, Mar unouchi 1- Chom e,
Chi yoda-k u, Tok yo

1-1, Higas hi-Ik ebuk uro 3- Chom e,
Toshim a-k u, Tok yo(3)
Representative

Hir oak i Nak anis hi, President

Yos hiharu Mura yam a,
Representative Direc tor andPresident(4) Bus iness

Developm ent, m anuf acture and
Des ign of various m achiner y andsales of pr oducts and provis ion of equipm ent for air c onditioning,
ser vice acr oss 10 s egm ents:
refrigeration, dus t c ollection andInform ation & Telecom m unic ation water treatm ent s ys tem s;
S ystem s, Power S ystem s, Soc ial contracting of c onstruc tion andInfras tr uctur e & Industrial
m aintenanc e work , environm ental
S ystem s, Elec tronic S ystem s &surve ys and anal ys is
Equipm ent, Cons truc tion
Mac hiner y, High Func tional
Materials & Com ponent s,
Autom otive S ystem s, DigitalMedia & Cons um er Produc ts,
Others (Logis tics and Other
ser vices) and Financ ial Servic es(5) Capital

458,790 m illion yen(As of Septem ber 30, 2013)

340 m illion yen(As of Septem ber 30, 2013)(6) Es tablishedFebruar y 1, 1920

Septem ber 15, 1964

(7) Num ber of
iss uedshar es(8) Fisc al
year- end

4,833,463,387(As of Septem ber 30, 2013)

6,409,049(As of Septem ber 30, 2013)

Marc h 31

Marc h 31(9) Major
shareholders
andshareholding

The Mas ter Trus t Bank of J apan, Hitachi, Ltd. 100%Ltd. (Trust Account) 6.35%
Japan Trus tee Servic es Bank ,Ltd. (Trust Account) 5.29%
Hitachi Em plo yees' Shareholding
Ass ociation 2.39%
Japan Trus tee Servic es Bank ,Ltd. (Trust Account 9) 2.19%
Nippon Life Insuranc e Com pan y
1.98%(As of Septem ber 30, 2013)(10) Financ ial c onditions and bus iness res ults for the m ost recent fiscal year
(Millions of yen unless other wis e s pec if ied)
Net assets

3,179,287 (Cons olidated)

6,506 (Unc ons olidated)

Total ass ets

9,809,230 (Cons olidated)

17,833 (Uncons olidated)

431.13 (Cons olidated)

1,015.17 (Uncons olidated)

Net assets per
1
share ( yen) *- more -- 15 -

Revenues
Operatingincom eOrdinar y2
incom e*Net incom e*3

9,041,071 (Cons olidated)

27,426 (Uncons olidated)422,028 (Cons olidated)

1,143 (Unc ons olidated)

344,537 (Cons olidated)

1,173 (Unc ons olidated)

175,326 (Cons olidated)

735 (Uncons olidated)

Net incom e per37.28 (Consolidated)
114.77 (Uncons olidated)
3
share ( yen) **1 Sinc e Hitac hi has been adopting U.S. acc ounting s tandards , this figure represents
stock holders ’ equit y per shar e.
*2 Sinc e Hitac hi has been adopting U.S. acc ounting s tandards , this figure represents
incom e bef ore inc om e tax es.
*3 Since Hitachi has been adopting U.S. acc ounting s tandards , thes e figures repres ent
net incom e attr ibutable to Hitachi, Ltd. stock holders and net incom e attributable to
Hitachi, Ltd. stock holders per s hare bas ic, respec tivel y.

3. Overview of the Business to Be Transferred(1) Business of the Business to Be Transferred
Air conditioning systems construction in Japan(2) Others
Other details concerning the business to be transferred will be announced
as they are decided.
4. Status of Succeeding Company After Transfer(1) Nam e(Not yet determ ined)(2) Head Offic e

1-1, Higas hi-Ik ebuk uro 3- Chom e, Tos him a-k u, Tok yo(tentative)(3) Repr es entative(Not yet determ ined)(4) Bus iness

Constr uc tion of air c onditioning and water treatm ent fac ilities,
m aintenanc e m anagem ent, provis ion of s ervic es andm aintenanc e(5) Capital(Not yet determ ined)(6) Fisc al year- end

Marc h 31

5. Status of Hitachi After the Company Split
There will be no change in the company name, head office location,
representative’s position or name, business activities, capital or fiscal
year of Hitachi due to the company split.

- more -- 16 -

6. Outlook
The company split will have no impact on the consolidated operating
results of Hitachi.

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About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is a leading
globalelectronics

company

withapproximately 3 26,000

employees

worldwide. The company’s consolidated revenues for fiscal 201 2 (ended
March 31, 2013) totaled 9,041 billion yen ($96.1 billion). Hitachi isfocusing more than ever on the Social Innovation Business, which includes
infrastructure systems, information & telecommunication systems, powersystems, construction machinery, high functional material & components,
automotive systems and others.
For more information on Hitachi, please visit the company's website at
http://www.hitachi.com.
Cautionary Stat ement
Certain statem ents found in this doc um ent m ay c onstitute “forward - look ing statem ents”
as defined in the U.S. Pr ivate Sec urities Litigation Reform Act of 1 995. Suc h“forward- look ing statem ents” r eflect m anagem ent’s c urrent views with res pec t tocertain futur e events and financ ial perform ance and inc lude an y statem ent that does
not directl y r elate to an y his torical or c urrent fact. W ords suc h as “antic ipate,”“believe,” “ expec t,” “ estim ate,” “forec ast,” “intend,” “plan,” “projec t” and s im ilar
express ions whic h indic ate future events and trends m ay identif y “forward - look ing
statem ents.” Suc h statem ents are bas ed on currentl y available inf orm ation and aresubj ect to var ious ris k s and unc ertainties that could caus e ac tual results to differ
m ateriall y from thos e projec ted or im plied in the “forward - look ing s tatem ents” and from
historical trends. Cer tain “for ward - look ing statem ents” are based upon c urrent
assum ptions of future events whic h m a y not prove to be acc urate. Undue relianc e
should not be placed on “for war d - look ing statem ents ,” as s uch s tatem ents s peak onl y
as of the date of this docum ent.
Factors that c ould cause actual res ults to differ m ateriall y from thos e proj ected orim plied in an y “for war d -look ing statem ent” and from historical trends inc lude, but are
not lim ited to:•

econom ic conditions , inc luding cons um er spending and plant and equipm ent
inves tm ent in Hitac hi’s m ajor m ark ets, partic ularl y J apa n, As ia, the United Statesand Eur ope, as well as levels of dem and in the m ajor industrial s ectors Hitachi
serves , inc luding, without lim itation, the inform ation, elec tronics, autom otive,
cons tr uction and f inancial sec tors;•

exchange rate fluctuations of the yen agains t other c urrenc ies in which Hitachi
m ak es signif icant sales or in whic h Hitac hi’s assets and liabilities are denom inated,particular l y against the U.S. dollar and the euro;•

unc er taint y as to Hitac hi’s abi lit y to acc ess, or acc ess on f avorable term s, liquidit yor long- term financ ing;•

unc er taint y as to gener al m ark et pric e levels for equit y s ecurities , declines in whic hm ay r equir e Hitachi to write down equit y s ecurities that it holds;•

the potential for significant losses on Hitac hi’s investm ents in equit y m ethod
affiliates;•

increas ed com m oditiza tion of inform ation tec hnolog y products and digitalm edia-related pr oduc ts and intens if ying pric e com petition for s uch products ,- more -- 18 -

particu lar l y in the Digital Media & Cons um er Products s egm ent;•

unc er taint y as to Hitac hi’s abilit y to c ontinue to develop and m ark et products thatincor porate new tec hnologies on a tim el y and cos t -effective bas is and to ac hievem ark et acceptanc e for such products ;•rapid technological innovation;•

the possibilit y of c ost fluctuations during the lifetim e of, or canc ellation of,long-term contr acts for whic h Hitac hi uses the perc entage - of-com pletion m ethod torecognize r evenue from sales ;•fluctuations in the pr ic e of r aw m aterials including, without lim itation, petroleum
and other m ater ials , such as c opper, s teel, alum inum , s ynthetic res ins, rare m etals
and rar e- earth m iner als, or s hortages of m aterials , parts and c om ponents;•

fluctuations in product dem and and industr y c apac it y;•

unc er taint y as to Hitac hi’s abilit y to im plem ent m eas ures to reduce the potential
negative im pac t of fluc tuations in product dem and, exc hange rates and/or pric e ofraw m ater ials or s hortages of m aterials , parts and com ponents;•

unc er taint y as to Hitac hi’s abilit y to ac hieve the antic ipated benefits of its strateg y
to str engthen its Social Innovation Bus iness;•

unc er taint y as to the s uccess of res truc turing efforts to im prove m anagem ent
efficienc y b y dives ting or otherwis e ex iting underperform ing bus ines ses and tostrengthen com petitiveness ;•unc er taint y as to the s uccess of c os t reduc tion m eas ures;•

general soc ioeconom ic and politic al c onditions and the regulator y and tradeenvir onm ent of c ountr ies where Hitachi conducts bus iness , partic ularl y J apan,
As ia, the United States and Europe, inc luding, without lim itation, direct or indirect
restric tions b y other nations on im ports and differences in com m ercial and bus inesscustom s including, without lim itation, c ontrac t term s and c onditions and labor
relations;•unc er taint y as to the s uccess of allianc es upon whic h Hitachi depends, som e ofwhic h Hitachi m ay not contr ol, with other c orporations in the des ign anddevelopm ent of c ertain k ey produc ts;•

unc er taint y as to Hitac hi’s access to, or ability to protec t, c ertain intellec tualpropert y r ights, partic ularl y those related to electronics and data processing
tec hnologies;•

unc er taint y as to the outc om e of litigation, regulator y investigations and other legal
proc eedings of which the Com pan y, its subs id iaries or its equit y m ethod affiliates
have bec om e or m ay becom e parties;•

the possibilit y of incurr ing ex pens es res ulting from an y defects in produc ts orservices of Hitac hi;•

the possibilit y of disr uption of Hitac hi’s operations b y earthquak es, ts unam is orother natural dis asters ;•unc er taint y as to Hitac hi’s abilit y to m aintain the integrit y of its inf orm ations ystem s, as well as Hitachi’s ability to protect its confide ntial inform ation or that ofits cus tom ers;•

unc er taint y as to the accurac y of k ey ass um ptions Hitachi us es to evaluate its
signific ant em plo yee benefit -related c os ts; and•unc er taint y as to Hitac hi’s abilit y to attract and retain sk illed personnel.

The factors listed above are not all -inclusive and are in addition to other factors containedin other materials published by Hitachi.

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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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