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NORTH ONE : AMERICA JULY 2015

At a glance: 2 Social Innovation Forum 4 Global Brand Campaign Update 5 Penske Sponsorship 6 Recent Acquisitions 10 Summer Food Drive

in the area of Social Innovation. We have the operational and information technologies, industry knowledge and analytics expertise. No other company can bring it together like we can – on a large scale. In the Americas, we have an unmatched opportunity to build and deliver solutions that truly transform business and society.” Jack Domme addressing the audience at the Hitachi Social Innovation Forum in North America 2015. One of Domme’s top priorities is building a growth-based culture in Jack Domme: the Americas, emphasizing trust, transparency and accountability. A New Chief Executive for the Americas key to a growth-based culture is to establish a “market-in” approach, Effective April 1, 2015, HDS CEO also now very focused on the strong setting realistic growth targets Jack Domme was appointed Hitachi’s potential for growth in North America. grounded in market realities, and Chief Executive for the Americas, aligning Hitachi’s impressive research Chairman of the Board of Hitachi Mr. Domme has more than 30 years of and development capabilities to build Consulting Corporation and also experience in the IT industry and has and deliver repeatable solutions for became an Executive Officer of Hitachi, worked for Hitachi since 2003. In his many customers and industries. A Ltd. Mr. Domme’s appointment is new role, Mr. Domme is responsible for significant area of opportunity is to part of a new global management creating a regional strategy, growing build a value chain that reduces costs strategy – described as “autonomous the Social Innovation Business and and enables investment in strategic decentralized global management” – allocating investments in new strategic markets. that is Hitachi’s intention to place more growth areas. direct control of key businesses into While Domme is focused on winning, the hands of local leaders. To grow the When asked about his goals for he always puts it into perspective by Social Innovation Business globally, Hitachi in North America, Mr. Domme saying, “We want to win the right way. Hitachi recognizes the importance of said, “My aim is to ensure that the That means with high integrity. We enabling faster decision-making so that vast resources of Hitachi are aligned want to win for the company. We want the company is more responsive to the and fully utilized to drive innovative to take care of our employees. We market and customer needs. Hitachi is solutions for our customers, especially want to invest in the future.” Clockwise from top left: Higashihara-san making a point during panel on Social Innovation; Kevin Eggleston, Senior Vice President, Social Innovation and Global Industries, Hitachi Data Systems, speaking on a panel; A cancer survivor talks about his personal experience with Hitachi’s Proton Beam Therapy system; Roger S. Penske (left) with (right). Hitachi Hosts First Social Innovation Forum in North America

On April 28 and 29, Hitachi hosted HDS CEO Jack Domme, who was its first Hitachi Social Innovation appointed Chief Executive for the “By conducting business in a way that Forum (HSIF) 2015 in North America. Americas on April 1, shared his is global, inclusive and collaborative, Set against the glamour of the Wynn perspective on the market opportunity we will all be able to enjoy the benefits Encore Resort in Las Vegas, the Forum for social innovation and why Hitachi of better systems and an enhanced provided Hitachi Group companies is uniquely positioned to be a leader quality of life. We will all live better with an opportunity to build on the in this area due to our broad industry by sharing our most innovative ideas momentum surrounding increased expertise, unparalleled innovation, regarding the enhancement of our One Hitachi activities in our region and extensive IT solutions and global Social Infrastructure Systems.” present Hitachi’s capabilities around market presence. The program also Hiroaki Nakanishi key verticals to customers, partners included a Fireside Chat between Chairman and CEO, Hitachi, Ltd. and executive leadership from Japan. Roger S. Penske, Chairman, Penske With the spotlight on North America Corporation, and event MC Steve all, more than 550 people attended as a top growth market for Hitachi, the Clemons, who is an editor-at-large at the event, and the feedback has been event was an important opportunity The Atlantic. overwhelmingly positive. to educate attendees about Hitachi’s leadership in the Social Innovation In addition to these speakers, the Content from the event, including Business. agenda included panel discussions videos and photos, are now posted on social innovation and leadership, on Hitachi’s U.S. website: http:// Highlights of the one day Forum innovation in social and industrial www.hitachi.us/about/hitachi/events/ included remarks by Hitachi, Ltd.’s two infrastructure, and industry-focused hitachi-social-innovation-forum-2015. top executives - Hiroaki Nakanishi, panels on how big data and connected Additional material, including the Chairman and CEO, and Toshiaki solutions will impact the automotive, presentations, can be found on the Higashihara, President and COO. healthcare and security sectors. In Group Company Resource Site.

2 | One Hitachi: North America | July 2015 Social Innovation Showcase Impresses at HSIF

Greeted enthusiastically by Emiew, • Big Data Lab time public safety information from the Hitachi , guests at the • Communications, Media and multiple security sensors shown on Hitachi Social Innovation Forum Entertainment a single pane of glass (a solution enjoyed a private VIP reception in • Energy and Earth Resources from HDS), guests were able to gain the Social Innovation Showcase on • Healthcare and Life Sciences some insight into the breadth of the evening of April 28 which served • Internet of Things that Matter Hitachi’s expertise and product line- as the kick-off to the whole event. • Smart City – Efficient Transportation up across a wide range of industry The Social Innovation Showcase • Smart City – Sustainable sectors. The excitement in the room was the first time a majority of Infrastructure was palpable throughout the event, Hitachi’s Group companies in North • Smart City – Public Safety and the Showcase provided guests America had the opportunity to • Hitachi World new to Hitachi and those already exhibit their products and solutions familiar with the chance to truly see together. 27 Group companies From driving a bull dozer in a the breadth of “One Hitachi.” had displays in the Showcase. simulator supplied by HCM to Organized thematically, the seeing a fly’s wing using HTA’s Showcase had customized areas tabletop scanning electron devoted to the following topics: microscope to watching real

Clockwise from top left: One of the most popular exhibits was Hitachi’s driving simulator; Former Americas Chairman Takashi Hatchoji (center) speaking to guests at the Showcase; (from left to right) Mark Jules, Vice President, Public Safety and Visualization Solutions, Hitachi Data Systems, Eriyoshi Konno, President and CEO, Hitachi America, Ltd., Emiew, the Hitachi robot, interacted with and Hiroaki Nakanishi, Chairman and CEO, Hitachi, Ltd.; Explaining Hitachi solutions to guests at the Showcase. guests at the event.

July 2015 | One Hitachi: North America | 3 The annual Inspiration of the Year Global Award competition started in mid-June and the submission period will end on August 21. While global, this annual award recognizes excellence at Hitachi Hitachi’s new mobility ad Group companies by region. Entries are judged based on Global Brand Campaign Update how well they represent the values of Innovation, Teamwork, In FY2013, Hitachi launched a multi- The newest ad in the group focuses Global and Inspire the World. faceted, global advertising campaign on mobility and features a child While each region holds its own with the tagline “Social Innovation – It’s asking if his car might take him to the competition, the criteria are Our Future.” The campaign reinforces future. New creative executions are uniform in all competitions taking Hitachi’s belief that it can create a also being planned for FY 2015. New place throughout the world. The better world for future generations by TV commercials are being created winning teams in each region will using its Social Innovation Business based on the issues of security and send one representative to Tokyo to solve a range of serious global transportation. New print ads are also for the Global Commendation challenges. To date, the campaign being developed around the issues of Ceremony. includes six TV commercials that can energy, water and transportation. All of also be seen on YouTube on the Hitachi the new ads should be available by the Click here to access the entry Brand Channel and nine different print end of September. form. The User ID is inspiration, ads. In North America, these print ads and the password is global. are running in prestigious publications For more information on the campaign, including the Financial Times, the Wall please visit the Global Campaign The goal of the competition is to Street Journal, the Economist, Fast section on Hitachi’s website. If you recognize excellence as well as Company, Harvard Business Review, have questions about the campaign projects that embody Hitachi’s Fortune and Bloomberg Businessweek. in North America, please contact Vision statement, which is Banner ads will also be running in a HAL’s Branding and Corporate “Hitachi delivers innovations that range of digital media outlets. Communications Group. answer society’s challenges. With our talented team and proven experience in global markets, we can inspire the world.” Entries North America Brochure Updates can be made by individuals or We will be updating the PDF version of the North America groups as long as the project Group company brochure this summer. The PDF version took place during the prior fiscal of the brochure can be found at http://www.hitachi.us/ year. New this year in North about/hitachi/corporate-brochure/ America is a specific award category to recognize CSR or Printed copies of the brochure are available to Group community relations projects. companies at no charge. In the past, companies have utilized the brochure at tradeshows, sales and client Don’t forget to enter by August meetings and internally as part of new employee 21 as no late submissions can be orientation. Brochures can be ordered through the Group accepted. The winning entries for Company Resource Site. If you have difficulty accessing our region will be announced in the order form, please contact hitachicommunication@ mid-October. hal.hitachi.com.

4 | One Hitachi: North America | July 2015 Penske Sponsorship

Hitachi has returned as a sponsor for all of ’s cars competing “Our partnership with Hitachi has grown and developed over in the 2015 Verizon IndyCar Series, the last four seasons and we are proud of the success we building on one of the most successful have had together in the Verizon IndyCar Series. Hitachi IndyCar partnerships. The No. 3 Team has established itself as an important partner in the series, Penske Dallara/Chevrolet, driven by not only with Helio and our team, but also working with three-time winner Chevrolet on their engine fuel injection systems.” Helio Castroneves, will once again Roger S. Penske adorn the Hitachi logo this season and Chairman, Penske Corporation in the future, under the terms of the partnership extension.

Since 2012, Hitachi and Team Penske have been practicing the “teamwork and technology” approach, demonstrating that innovation combined with an inspired team is what it takes to win. Hitachi is driving Team Penske’s success on the track, in one of the world’s most competitive racing environments, by leveraging its automotive and data analytics expertise, while also developing components for consumer vehicles on the street. Helio Castroneves Three-time Indy 500 champion 2014 Series Champion 2015 Indy 500 champion Adding to the winning combination on the track, Castroneves and Hitachi have worked together to build the “One technologies allow engines to be more For more information on the Penske Hitachi” brand around Hitachi’s Social representative of today’s production Sponsorship, please contact Elisa Innovation Business. automobiles. Sozio at [email protected].

Hitachi Automotive Systems Americas, Our partnership creates opportunities… To learn more about the sponsorship Inc. is also continuing to supply • Access to Team Penske’s and to explore the new infographic components for Chevrolet race engines extensive network visualizing performance, technology in the Verizon IndyCar Series. Hitachi’s • Our best technology at work and teamwork, please visit www. fuel injection technology is critical • Brand recognition hitachi.us/. To stay up to the Chevrolet V-6 race engine. In • Customer entertainment to date on the latest and greatest addition to advanced technology that • Recruiting activities from #HitachiRacing, “like” Hitachi positively impacts performance, Hitachi • Employee functions Motorsports on Facebook and follow @Hitachi_US on Twitter.

To learn more about the sponsorship and to explore the new infographic visualizing performance, technology and teamwork, please visit www.hitachi.us/motorsports.

To stay up to date on the latest and greatest from #HitachiRacing, “like” Hitachi Motorsports on Facebook and follow @ Hitachi_US on Twitter.

July 2015 | One Hitachi: North America | 5 Recent Acquisitions Boost Hitachi’s Capabilities

HDS Acquires Pentaho and oXya connected machines and sensors and Hitachi’s Proton Beam Therapy system In recent months, Hitachi has made how the Internet of Things can improve two important acquisitions that business and society. The addition of Hitachi To Supply have added significantly to both our Pentaho will help HDS accelerate its capabilities and our employee base. In Social Innovation Business strategy Proton Beam Therapy a move that is the largest private big- and become a leader in Internet-of- System to Sibley data acquisition to date, Hitachi Data Things technologies. Systems (HDS) has acquired Pentaho Memorial Hospital and Corporation, a leading big data Enhancing Services for Cloud and Johns Hopkins Medicine integration, visualization and business SAP Solutions With oXya analytics company. In a move that will enhance its growing Hitachi has received its fifth portfolio of cloud and managed order to supply its Proton This acquisition will help Hitachi deliver services, HDS has acquired oXya, Beam Therapy system (PBT) in business innovations that integrate a leading management and cloud Washington, DC. Sibley Memorial machine data and analytics to distill services provider. oXya helps IT Hospital and Johns Hopkins value from big data and the Internet organizations manage private and Medicine have selected Hitachi of Things. Pentaho has software and hybrid cloud environments more easily, to provide its PBT system along expertise that will advance the current and designs the infrastructure for more with a 10-year maintenance HDS portfolio of products and services effective and efficient implementations service, bringing the number of and help HDS bring additional big data of SAP solutions, including the SAP PBT systems Hitachi has sold solutions to market sooner. HANA platform. in North America up to five. The next-generation system Commenting on the acquisition, “Today’s partners and customers “PROBEAT”, which comes with Kevin Eggleston, HDS senior vice demand as-a-service options that IMPT (Intensity Modulated Proton president, Social Innovation, said, enable them to keep pace with market Therapy) and cone-beam CT, will “The combination of Hitachi’s dynamics like cloud, while transforming have improved spot scanning broad industry expertise, advanced the way they conduct business,” capability in all 3 gantry-type information technologies, and now said Hicham Abdessamad, executive treatment rooms, along with a Pentaho software and the talented vice president, Global Services, fixed irradiation room dedicated team of experts, will enable us to give Hitachi Data Systems. “oXya offers to cancer research. Patient customers a more complete solution an expanded set of application-as-a- treatment is expected to begin in to manage their data – allowing them service offerings, both in private cloud early 2019. to leverage the power of big data and and hybrid cloud. The acquisition of the Internet of Things in a quicker and oXya will enable HDS and our partners PBT improves the quality of life for simpler way.” to extend our portfolio of managed cancer patients since the patient cloud services and provide additional experiences no pain during To grow Hitachi’s Social Innovation skills and expertise to enable Hitachi treatment and the procedure Business in North America, HDS is Unified Compute Solutions in SAP and has very few side effects actively engaged in the practical use of SAP HANA environments.” compared with that of traditional radiotherapy. Given the growing demand for a more advanced Powering the 2016 GM Chevrolet Malibu Hybrid and less detrimental treatment modality, interest in proton When the 2016 GM Chevrolet Malibu Hybrids hits dealer therapy is on the rise, with more lots, they will be powered by a 5,000W/KG high output and more hospitals and cancer power density prismatic lithium battery cell supplied by treatment facilities venturing into Hitachi Automotive Systems, Ltd. These prismatic battery this area. Hitachi will continue to cells employ heat resistant separators to ensure the ionic globally expand the healthcare conductivity between positive and negative electrodes business where proton therapy increasing both vehicle power and safety. Hitachi has been is its flagship solution and providing lithium-ion batteries for vehicles since 1999 and contribute to cancer treatment has an excellent reputation among car manufacturers for around the world. providing a high quality, highly reliable product. Hitachi’s lithium-ion battery

6 | One Hitachi: North America | July 2015 Hitachi Metals Changes Corporate Structure

In order to better position itself within its market and to integrate a recent acquisition, Hitachi Metals Hitachi’s W series speakers has made the following changes to its corporate structure in North Hitachi Debuts New WiFi-Enabled Speakers America. As of April 1, 2015, the company has changed its name This spring, Hitachi introduced three America, Ltd., Digital Media Division. from Hitachi Metals America, stylish new Wifi-enabled speakers “This Hitachi speaker design creates Ltd. to Hitachi Metals America, powered by AllPlay™, a smart media a compelling sound experience, and LLC. This company, along with platform developed by Qualcomm®. the easy-to-use app for mobile devices the newly formed Hitachi Metals With these speakers, consumers makes it a breeze for consumers Foundry America, Inc., is now can seamlessly stream both local to set-up and control a home a subsidiary of Hitachi Metals and cloud-based audio content, audio system. The combination of America Holdings, Inc. Hitachi including content from industry-leading these features and advanced audio Metals America, LLC and Hitachi streaming services such as Spotify, processing circuitry define Hitachi as a Metals Foundry America, Inc. each Rhapsody and iHeartRadio. leader in wireless home audio.” have 4 subsidiaries as follows:

“The new Hitachi Smart Wi-Fi Speaker These speakers are available at Hitachi Metals America, LLC line-up captures the company’s Walmart and can be purchased at • Metglas, Inc. commitment to bringing consumers www.walmart.com. To watch a video • SinterMet, LLC products with truly exceptional sound about the speakers and learn about • Hitachi Metals North Carolina, quality, reliability, and user friendliness their features, please visit: http:// Ltd. in the wireless whole-home audio www.hitachi-america.us/products/ • America Inc. category,” said Bill Whalen, Director consumer/tv/ or www.hitachi.us/tv of Product Development, Hitachi Hitachi Metals Foundry America, Inc. • Waupaca Foundry, Inc. Hitachi Power Tools On the Rise at Lowe’s • Hitachi Metals Automotive Components USA, LLC Hitachi Koki USA, Ltd. is pleased to announce • AAP St. Marys Corp an exciting new agreement with Lowe’s, a • Ward Manufacturing, LLC FORTUNE® 100 home improvement company that serves approximately 16 million customers a Hitachi Metals finalized its week. After ten years building a solid relationship acquisition of Waupaca Foundry with Lowes, we have forged a new agreement at the end of 2014. This was an for the next five years that promises to make the important strategic acquisition Hitachi brand a dominant power tool player in for Hitachi Metals, which the North American market. Now, Hitachi Koki produces automotive casting USA will be a key partner with significant focus parts as Waupaca is the world’s on gaining the Pro at Lowes in the nationwide largest iron castings provider home center retail space. Sales commitments and it primarily serves the light and forecasts predict a huge opportunity for vehicles, heavy trucks and off- Hitachi Koki USA., Ltd. to take more market New Hitachi pneumatic displays launching at road commercial vehicles market Lowe’s in July 2015. share in electric power tools, fasteners and in North America with over 300 accessories. Our dominance and reputation with pneumatic nailers and wood to customers. With the acquisition, wood power tools promises to draw more professional contractors to Lowes to Hitachi becomes a unique supplier purchase the full line up. The brand exposure for Hitachi within the 1,750 Lowe’s of iron castings with the world’s stores in the United States is enormous, and places Hitachi power tools and largest production capacity. The nailers at the forefront of the market, along with the additional exposure through move is anticipated to further radio, TV, print, social media and digital advertising that is planned as part of this increase Hitachi’s position as a relationship. We all are dedicated to propelling this incredible alliance forward and market leader in this area. look forward to a successful and profitable future with Lowe’s.

July 2015 | One Hitachi: North America | 7 Hitachi Koki USA, Ltd. Wins Preferred Supplier Award

Reinforcing its leadership position in the residential construction industry, Hitachi Koki USA, Ltd. (Hitachi Power Tools) was Jason Trucchi, Director recognized for of Sales for Hitachi Koki USA, Ltd. proudly the third year in accepts the award a row for highest from Sphere 1 sales by brand at the annual meeting of Sphere 1

members. Sphere 1 is a cooperative Students getting ready to test their car inside Cobo Center. of independent tool and fastener Inset: A student concept car approaching the finish line distributors. Hitachi received this outside Cobo Center in Detroit. top award over 94 other Sphere 1 preferred suppliers. Sphere 1 members distribute products used in residential and multi-family construction. The Hitachi brand resonates extremely well within this Hitachi Participates in Shell segment due to its long-standing reputation for producing a durable Eco-Marathon in Detroit and dependable line of tools and accessories. In presenting More than 1,000 students from five countries across the Americas overtook Cobo the award, Sphere 1 CEO Carol Center in downtown Detroit, Michigan, April 9-12 to participate in the Shell Eco- Shackelford said, “Hitachi is Marathon Americas. Over three days, high-school and college student teams positioned as a top branded competed to design, build and drive the most energy-efficient car and see who contender in 2015 and we look could go the furthest on the least amount of fuel. Nine (HIAMS)AM-FA engineers forward to growing our business volunteered 147 hours on technical and safety teams where they ensured vehicles with their fine organization.” met inspection requirements and safety regulations, helped fill fuel tanks, and calculated results. Hitachi Receives Energy Efficiency Award

At a luncheon held on May 13 in Washington, DC, Hitachi received an award from the Alliance to Save Energy (ASE) for its commitment to promoting energy efficiency as expressed in its Environmental Vision 2025 and for its leadership in developing solutions to promote energy efficiency more broadly. Erica Hauver, Senior Vice President of Energy and Smart City Solutions, accepted the award on behalf of Hitachi, Ltd.

Today, Hitachi is developing power-generation systems that maximize the efficient use of resources while minimizing their environmental burden. The company’s new technologies increase the efficiency of both conventional power generation facilities, such as nuclear power plants, as well as renewable energy technologies, including solar power and wind power. Hitachi is also actively developing advanced

Alliance President Kateri Callahan (left) presenting the EE control systems that support the stable supply of energy from renewable energy Visionary Award to Erica Hauver (right). power systems.

8 | One Hitachi: North America | July 2015 STEM and Human Rights

On July 16th Theodore Lowen, Director of HAL’s Brand and Communications Group, participated as a panelist at the Annual AAAS Science and Human Rights Coalition Meeting, focusing on “Corporations, Human Rights, Science and Technology” in Washington, DC. Approximately 130 people attended the meeting, including a diverse representation Ted Lowen giving his presentation. from the Coalition’s 25 Member and Affiliated organizations, human responsibilities of businesses that Investments and the Institute for rights organizations, attorneys, rely heavily on scientific research and Human Rights and Business. researchers, corporate executives technology, the role of science and His presentation focused on and educators. technology in conducting Human Hitachi’s STEM education Rights Impact Assessments and other activities in the Americas, as well Participants at the event discussed types of research and documentation as the involvement of Hitachi’s the international human rights that are key components of the Community Action Committees principles that guide the conduct business and human rights framework. in science education activities of corporations and, in particular, and Hitachi’s global adherence to the implications of these norms for Ted participated in a panel, A STEM Human Rights principles in relation the work of scientists, engineers, Perspective on Business and Human to all the stakeholders it serves in and health professionals. They Rights, with representatives from world markets. also addressed the human rights Human Rights Watch, Calvert

Walking to Raise Money to Fight MS

Employees at HAL-DMD participated in the MS Society’s annual walk-a-thon in the San Diego area, raising $2,000 to help fight this devastating illness.

July 2015 | One Hitachi: North America | 9 Hitachi in North America Holds 16th Annual Summer Food Drive

This summer, Hitachi employees from across North America collected food and money for food banks and soup kitchens in their local communities. Summer is a time when organizations that provide food assistance see an increased demand for their services due to the fact that students who receive free or reduced price meals at school are not getting that extra support. Last year, 23 Hitachi companies, representing approximately 8,153 employees, participated in the drive raising a total of 44,367 pounds of food and nearly $125,000. Since 2000, Hitachi employees have donated

557,853 pounds of food and raised $797,196 to help alleviate Employees from Hitachi Transport System America in Torrance, hunger in their communities. California with some of the food they collected during the 2014 drive.

Special Pricing on Hitachi Business Projectors

Hitachi America Ltd., Digital Media Division’s Service and Solutions Group is offering elite pricing on Business Projectors to other companies within the Hitachi Group! The CP-WX3030WN, CP-X5022WN and CP-WX8255A are now available. For more information on these and other Group photo of meeting attendees. projectors sold at HAL-DMD, visit our website www.hitachi- america.us/projectors. You can also find the exclusive flyer Transforming Human Resources Across Hitachi for this promotion on the Group Companies site here: http:// groupcompanies.hitachi.us/HitachitoHitachiSales/index.html. In mid-June, HR professionals from across the Hitachi Group met in Las Vegas for their annual conference. For more information, please contact [email protected]. Representatives from 21 Hitachi Group companies from com or [email protected]. across North America attended this annual learning and networking event. Hitachi’s HR department is playing an important role in the global “Smart Transformation” project, an initiative aimed at reducing costs as well as streamlining business functions within the Hitachi Group. “To help Hitachi achieve this global transformation, Hitachi HR is implementing comprehensive, uniform, global initiatives that will affect our 320,000 employees worldwide,” says Levent Arabaci, General Manager, Global Human Capital Division, Hitachi, Ltd. “The platform underlying these initiatives,” he continues, “will streamline hiring, personnel administration, compensation and employee development on a global scale.”

To help Group Companies streamline activities, Hitachi America’s Corporate HR is rolling out a strategic platform of shared services that are available to all Group Companies. The platform includes services, support staff and automated tools to help support our business growth. For more information regarding taking advantage of HR-related shared services please contact Marta Bailey at [email protected].

ISSUE 1 / JULY 2015 Distributed by the Branding and Corporate Communications Group, Hitachi America, Ltd. / [email protected] Follow us on:

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10 | One Hitachi: North America | July 2015