FOR IMMEDIATE RELEASE

Hitachi Announces Progress of 2015 Mid-term Management Plan

Tokyo, May 14, 2015 --- Hitachi, Ltd. (TSE:6501 / “Hitachi”) today announced thecurrent status of its progress of the 2015 Mid-term Management Plan; amanagement plan focused on achieving growth and corporate transformation driven
by the further promotion of Hitachi’s Social Innovation Business. A summary of key
progress points appears below:

Key Message of Today’s Announcement(1) Hitachi has improved its earning power steadily in the second year of its 2015Mid-term Management Plan as a result of expanding its businesses and services
globally with the Social Innovation Business and also accelerating the cost
reductions through the Hitachi Smart Trans formation Project. Hitachi’s operating
income has been increasing at a rate of more than 10% per year in the past threeyears, and it has achieved consecutive highest operating income.
(2) On the other hand, Hitachi is challenging to anticipate changes in the market
environment and create cash. Hitachi will execute business structure reforms withexpenses in a scale of 50 billion yen in 1H FY2015, and expect performanceimprovement in and after FY2015. Also, Hitachi will increase profit and cash, andimprove CCC*1 (manufacturing, services and others) by strengthening andreorganizing the Hitachi Smart Transformation Project.
(3) In 2015, the last year of 2015 Mid-term Management Plan, Hitachi will accelerate
solid execution of growth strategy, business structure reforms and improvementof cash generation capability in order to meet initial goals of the 2015 Mid-termManagement Plan.
*1 CCC: Cash Conversion Cycle- more --2-

1. Progress Overview(1) FY2014 Result and FY2015 Targets
FY2013Actual(US GAAP)
Revenues
EBIT*3(Operating income)ratio
Net income attributable
to Hitachi, Ltd. stockholders
Net Income attributable toHitachi, Ltd. stockholders
per share
Stockholders’ equity ratio(Manufacturing, Services &Others)

FY2014
Actual(US GAAP)FY2015
Forecast(IFRS)*2
9,950.0
billion yen

FY2015InitialTargets(US GAAP)
10trillion yen

9,563.7
billion yen

9,761.9billion yen(US GAAP)
9,900.0
billion yen

6.1%(5.6%)

5.6%(6.2%)

6.6%(6.7%)

6.2%(6.8%*4)

Over 7%(Over 7%)264.9
billion yen

241.3billion yen

330.0
billion yen

310.0
billion yen

Over 350.0
billion yen

54.86 yen

49.97 yen68.34 yen

64.20 yenOver
70 yen

27.4%

27.3%

29%

29%

Over 30%*2 IFRS: International Financial Reporting Standards*3 EBIT: Earnings before Interest and taxes*4 This column shows “operating income after adjustments.”(an "Adjusted Operating Income" presented as revenues less cost of sales as well as selling, general andadministrative expenses)(2) Overseas revenue ratio, Service revenue ratio
FY2013
Actual

FY2014
Actual

FY2015
Forecast

FY2015
Forecast

Overseas revenue ratio45%47%50%

Over 50%Service revenue ratio

32%35%

38%

Over 40%(3) Achievement, Estimated benefit of Hitachi Smart Transformation Project
FY2011
Actual

FY2012
Actual

FY2013
Actual

FY2014
Actual

FY2015
Forecast

FY2011 - FY2015
Total Forecast

35.0
billion yen

75.0
billion yen

110.0
billion yen

100.0billion yen

100.0billion yen

420.0
billion yen

FY2011-15
Initial
Total Target

400.0
billion yen

2. Management Focus(1) Innovation：Strengthen service businesses that maximize theutilization of IT and bring about innovation(2) Global：Deliver innovation to customers and society globally(3) Transformation：Transform Hitachi - To deliver innovation by standardized
and speedy operation- more --3-

3. Progress Overview in FY2014(1) Results①Stable increase in profitability:
Operating income is increasing at a rate of more than 10% per year.
②Expand global business:
Business in North America is increasing.
③Expand Social Innovation Business.
Strengthen front-line capabilities, and support customers’ growth.
(2) Challenges①Business structure reforms to anticipate changes in the market environment:
Challenge: IT Platform business (telecommunications & network systems,servers), T&D equipment business etc.
Action:Execute business structure reforms with expenses on a scaleof 50 billion yen in 1H FY2015, expecting performance
improvement from these businesses in and after 2H FY2015.
②Strengthen ability to generate cash:
Challenge: Although sales costs have decreased, CCC(manufacturing, services and others) areon par with the previous year.
Action:Increase profit and cash, and improve CCC(manufacturing, services and others) by strengthening
and reorganizing the Hitachi Smart Transformation Project.
(3) Dealing with discontinued operations*5
When Hitachi’s thermal power generation systems business was integrated
with Mitsubishi Heavy Industries, some projects, mainly in Europe, remainedwith Hitachi. Most of these projects have been wrapped up and recognized as“discontinued operations”, so net losses of 52.7 billion yen were posted inFY2014.
*5 A part of the thermal power generation systems business is classified as a discontinued operation in accordancewith the provision of ASC 205-20, "Presentation of Financial Statements – Discontinued Operations," which was
not transferred to Mitsubishi Hitachi Power Systems, Ltd for the business integration in the thermal power
generation systems with Mitsubishi Heavy Industries, Ltd. The results of the discontinued operation are reported
separately from continuing operations. In line with this classification, the results of the business for the year
ended March 31, 2014 are reclassified as the discontinued. 2014 have been reflected.

- more --4-

4. Growth Strategy(1) Global Business Expansion: Expanding in the North American market①Business rollout in IoT (Internet of Things) market②Expand solutions using IT (analytics)(2) Service Business Expansion: Strengthening profitable service business①Expand long-term fee service business (Train and Energy)②Utilize telecommunication technology in social infrastructure field⇒ Expand IoT service business③Create new service business utilizing IT technology (analytics)④Create new service business utilizing IT (analytics): China Smart Logistics- Procurement Service, Procurement EDI (Electronic Data Interchange)
Service, Logistics Service(3) Cost reductions through the Hitachi Smart Transformation Project:
Strengthen measures aimed at increasing cash
①Reduction of SG&A and Cost of Sales (+100 billion yen)
②Improve CCC (manufacturing, services and others)
5-days reduction (+130 billion yen)
5. Toward Social Innovation Business(1) Promote management and R&D close to customers (front-line)①Global management- Expand the Social Innovation Business by making management decisions
in each region based on the market and customer needs- Start with 4 regions: North America, Europe, China and Asia
②Global R&D- Reorganized global R&D structure- Established the Global Center for Social Innovation to share issues anddevelop with customers (Tokyo, North America, China, Europe)(2) Accelerate Global Collaborative Creation in the field of Social Infrastructure
Business: CyberPoc*6
Projects ongoing with customers in the field of manufacturing,natural resources, financial services, and biotechnology.

- more --5-(3) Create solutions close to customers (front-line)①Strengthen front-line capabilities- Consolidate SI capabilities in financial, public and social sectors- Establish solution-delivering business groups(Healthcare Company and Energy Solutions Company)②Collaborative creation with customers for value creation③Cultivate customers in the energy sectors(4) Focus on industrial products business that support innovation:
Supply core products that support the Social Innovation Business
Consolidate our industrial products business- Strengthen product competitiveness, Optimize sales, service,
and production structures, and Invest in priority areas, etc..
(5) Business Portfolio Realignment :Acquire necessary resources (customer base, sales channel, technologies)
for growth, optimize business portfolios and increase revenue.
- Strengthen Front-line Function, Strengthen Analytics,
Strengthen Product / Service*6 Cyber-PoC: Cyber-Proof-of-Concept: Visualization simulator which supports customers’ business creation

6. FY2015 and beyond
Solid execution of growth strategy and business restructuring
Improve financial performance to meet goals set in 2015 Mid-term Management
Plan
Serving the World with Our Social Innovation Business
SOCIAL INNOVATION‐IT’S OUR FUTURE- more --6-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-lookingstatements” 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 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 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-lookingstatements,” 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, theinformation, 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, declines in which may
require Hitachi to write down equity securities that it holds;•

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, 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;•

increased commoditization of and intensifying price competition for products;•

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 acquisitions of other companies, joint ventures and strategic
alliances and the possibility of incurring related expenses;•uncertainty as to the success of restructuring efforts to improve management efficiency bydivesting or otherwise exiting underperforming businesses and to strengthen competitiveness;•

uncertainty as to the success of cost reduction measures;•

general socioeconomic and political conditions and the regulatory and trade environment of- more --7-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 keyproducts;•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 potential for significant losses on Hitachi’s investments in equity-method affiliates;•the possibility of disruption of Hitachi’s operations by natural disasters such as earthquakes
and tsunamis, the spread of infectious diseases, and geopolitical and social instability such asterrorism and conflict;•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 othermaterials published by Hitachi.

About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations thatanswer society’s challenges with our talented team and proven experience in global
markets. The company’s consolidated revenues for fiscal 2014 (ended March 31,2015) totaled 9,761 billion yen ($81.3 billion). Hitachi is focusing more than ever on
the Social Innovation Business, which includes power & infrastructure systems,
information & telecommunication systems, construction machinery, high functional
materials & components, automotive systems, healthcare and others. 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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