Hitachi Corporate Presentation 2020

Hitachi in Europe 2020

1. Overview of Hitachi 2. Introduction of European Business

• Founded in 1910 as a machine repair shop at ORIGINAL REPAIR SHOP IN IBARAKI (1910) Kuhara Mining Company in Hitachi City, Ibaraki Prefecture, Japan (Incorporated in 1920)

• Values (Hitachi Founding Spirit): Harmony, Sincerity, Pioneering Spirit

• Mission Contribute to society through the development of superior, original technology and products

Founder: Namihei Odaira Originally set by Hitachi founder Namihei Odaira, the Mission has been carefully passed on to generations of employees and stakeholders throughout the company’s 100-year history.

The Values reflect the Hitachi Founding Spirit, which was shaped by the achievements of our company predecessors as they worked hard to fulfil Hitachi’s Mission.

The Vision has been created based on the Mission and Values. It is an expression of what the Hitachi Group aims to become in the future as it advances to its next stage of growth.

“Hitachi delivers innovations that answer society’s challenges. With our talented team and proven experience in global markets, we can inspire the world.”

Headquarters Revenues FoundedFounded 6-6, Marunouchi ¥¥98,767.2,480.6 billion 1-chrome, Chiyoda-ku, (FY2018)(FY2019) 19101910 Tokyo, 100-8280 Japan No. of Companies Adjusted operating income*1 (As of end of FY2018)FY2019) ¥¥754.9661.8 billion (FY201(FY2018)9) 803815

No. of consolidated EBITEBIT*2 Net income employees ¥513.9¥183.6 attributable to Hitachi, billion Ltd. stockholders 301,056295,941 (FY2018)(FY2019) (As(As of end of FY201FY2018)9) ¥222.5¥87.5 billion billion (FY201 (FY2018)9)

Others IT 5% 22%

Hitachi Chemical Energy 7% 4% Revenues Hitachi Metals Industry 9% 8,767.2 9% billion yen

Mobility Hitachi Construction 12% Machinery 10%

Smart Life 22%

Hitachi Metals Hitachi Chemical 9% 7%

Hitachi Construction Others Machinery 10% 5% • Financial Institutions Business Unit(BU) Revenues IT 8,767.2 22% • Social Infrastructure Systems BU billion yen • Services & Platforms BU Smart Life Energy 22% 4%

Mobility Industry 12% 9%

Hitachi Chemical Others 7% 5%

Hitachi Metals IT 9% 22%

Revenues • Nuclear Energy BU Hitachi Construction 8,767.2 Energy Machinery 10% 4% • *1 billion yen Energy BU

Industry 9%

Smart Life Mobility 22% 12%

Others IT 5% 22%

Hitachi Chemical Energy 7% 4% • Industry & Distribution BU Revenues Hitachi Metals Industry • 2 9% 8,767.2 9% Water & Environment BU* billion yen • Industrial Products Business*3 Hitachi Construction Mobility Machinery 10% 12%

Smart Life 22%

*2 As of April 1, 2019, Water BU changed its name to Water & Environment BU. *3 Industrial Products Business includes Hitachi Industrial Products, Ltd., which took over Industrial Products BU as of April 1 2019, and Hitachi Industrial Equipment Systems, Co., Ltd. © Hitachi Europe Ltd. 2020 . All rights reserved. 12 1-4. Business Segment Constitution (FY2019)

IT Energy 22% 4%

Others Industry 5% 9%

Revenues • Building Systems BU Hitachi Chemical 8,767.2 Mobility 7% 12% • billion yen Railway Systems BU

Hitachi Metals 9% Smart Life 22%

Hitachi Construction Machinery 10%

Energy Industry 4% 9%

IT Mobility 22% 12% • Healthcare BU • Smart Life & Revenues Others Smart Life Ecofriendly Systems 5% 8,767.2 22% Business*4 billion yen • Automotive Systems Business*5 Hitachi Chemical 7% • Hitachi High Tech

Hitachi Metals Hitachi Construction 9% Machinery 10%

*4 Smart Life & Ecofriendly Systems Business includes Hitachi Global Life Solutions, Inc. which was formed thorough a merger of Hitachi Appliances, Inc. and Hitachi Consumer Marketing, Inc. *5 Automotive Systems Business includes Hitachi Automotive Systems, Ltd. © Hitachi Europe Ltd. 2020 . All rights reserved. 14 1-5. Global Expansion (FY2019*)

North America Europe Asia (incl. China) Ch • Revenues: 1,102.9 billion yen • Revenues: 924.4 billion yen • Revenues: 1,787.5 billion yen • R • Number of companies: 92 • Number of companies: 132 • Number of companies: 325 • N • Number of employees: 22 thousand • Number of employees: 18 thousand • Number of employees: 87 thousand • N

rth America Europe Asia (incl. China) China Revenues: 1,102.9 billion yen • Revenues: 924.4 billion yen • Revenues: 1,767.5 billion yen • Revenues: Number of companies: 92 • Number of companies: 132 • Number of companies: 325 • Number of c Number of employees: 22 thousand • Number of employees: 18 thousand • Number of employees: 87 thousand • Number of e

Europe Asia (incl. China) China • Revenues: 924.4 billion yen • Revenues: 1,767.5 billion yen • Revenues: 871.1 billion yen • Number of companies: 132 • Number of companies: 325 • Number of companies: 138 nd • Number of employees: 18 thousand • Number of employees: 87 thousand • Number of employees: 42 thousand

North America Europe Asia (incl. China) China Japan Other

Japan Revenues: 4,529.9 billion yen • Number of companies: 174 • Number of employees: 162 thousand

Outside Japan Revenues: 4,238.1 billion yen • Number of companies: 641 • Number of employees: 139 thousand

TOTAL Revenues: 8,767.2 billion yen • Number of companies: 815 • Number of employees: 301 thousand

To improve the Quality of Life and add values for customers

Social values Environmental Economic values values

To increase the three values of social, environmental and economic by five-sector business and technology solutions

Mobility Smart Life Industry Energy IT solution solution solution solution solution

“Human-centric”: Human needs accelerate innovations

“Societal changes" brought about by COVID-19

Remote Contactless Automation

Social Innovation Business Co-creation and digital technologies OT × IT × Products

 Solving issues through customer co-creation  Scaling solutions to each region with Lumada  Expanding values through ecosystems globally

Aim for 1.6 trillion yen sales of the Lumada business overall in FY2021

Co-creation/Digital technologies Connecting systems

Customers Partners

Hitachi

Value creation platform in cloud (Lumada Solution Hub) Solutions Over 1,000 customer cases accumulated

Solving environmental issues through Social Innovation Business and achieving both a better quality of life and a sustainable society

Decarbonized society Resource efficient society

Reducing the CO2 emissions Building a water and resource throughout the value chain recycling society

FY2021 FY2030 FY2050 (Efficiency) FY2021 FY2050 Over 26% Over 20% 50％ 80％ Water improvement 50% Reduction Resources Over 12% 50% improvement (vs. FY2010) (vs. FY2010, in the Hitachi Group)

Main activities  Reducing freshwater use and promoting ●Reducing CO2 emissions from usage of the use of recycled water products, services, factories and offices  Using recycled materials and reducing waste

Contributing to Supplying stable Facilitating an economic development energy environment for clean in India water Managing transformer Payment services sub-stations City water and sewage systems Over 0.4 bill. people 1.8 bill. people 70 mill. users/day (cumulative total) (cumulative total)

Smart Mobility Life

Providing safe and Contributing to comfortable transportation services QoL of people External diagnostics Railway services (e.g., blood testing) 18.5 bill. riders/yr. (cumulative total) 20 bill. tests/yr.

2021 Mid-term FY2019 Management Plan Targets

8,767.2 The annual growth Revenues Over 3％ billion yen rate for revenues

Adjusted operating Adjusted operating income ratio 7.5% income ratio Over 10%

Net income attributable Operating Over to Hitachi, Ltd. 87.5 cash flow 2.5 trillion yen stockholders billion yen (cumulative for 3 yrs.) Return on Cash flows from 560.9 invested capital operating activities Over 10% billion yen (ROIC) Return on To be updated in the future based on invested capital 9.4% the following circumstances (ROIC) ・Changes in the COVID-19 situation ・Acquisition of ABB's power grids business Five sectors , especially ・Business integration with Keihin, Showa the IT segment, remained firm and Nissin Kogyo © Hitachi, Ltd. 2020. All rights reserved.© Hitachi, Ltd. 2020. All rights reserved. 2525 1-11. Hitachi and the SDG’s

• In 2015, the United Nations announced 17 goals to end poverty, fight inequality and injustice and tackle climate change by 2030. The Sustainable Development Goals (SDGs) are not just a blueprint but a comprehensive action plan for business, governments and communities.

• The diversity of the Hitachi Group positions the company well to make a broad contribution to achieving the SDGs.

• In 2017, Hitachi identified five SDGs where it can have the greatest impact through its business strategy and six additional SDGs linked to its corporate commitment to society.

• Our Mid-term Management Plan 2021 continues this commitment to the realisation of the SDGs.

With 1,018.5 billion yen revenues, 129 legal entities and around 17,000 employees (as of March 31st 2019), the Hitachi Group in Europe is expanding its already significant presence through growth of its 5 strategic sectors...

...IT, Energy, Industry, Mobility, and Smart Life –

as well as Hitachi High-Technologies, Hitachi Construction Machinery, Hitachi Metals, and Hitachi Chemical.

AMSTERDAM: Hitachi Construction Machinery (Europe) MAIDENHEAD: Hitachi Europe

LONDON: Hitachi Rail Hitachi Solutions Europe

GLOUCESTER: Horizon Nuclear Power STOKE POGES: Hitachi Vantara EMEA DÜSSELDORF: Hitachi Metals Europe BRADFORD-ON- Hitachi Information Control MUNICH: Hitachi Automotive AVON: Systems Europe Systems Europe BROMLEY: Temple Lifts KREFELD: Hitachi High-Technologies Europe

BRUSSELS: Hitachi Corporate Office, MOSCOW: Hitachi, Ltd., Moscow Office Europe ST PETERSBURG: Zao Hitachi-Svetlana Power Electronics

MILAN: Hitachi Industrial Engineering EMEA Hitachi Drive Automation Italy ZUG: Hitachi Medical Systems Europe Holding

GENOA: Hitachi Rail STS

AMSTERDAM: Hitachi Construction Machinery TVER Hitachi Construction Machinery (Europe) (Excavators, Wheel loaders) REGION: Eurasia Manufacturing (Excavators) NEWTON Hitachi Rail (Rolling stocks) AYCLIFFE: BOLTON: Hitachi Automotive WROCLAW: Chassis Brakes International Systems Europe (Automotive components) (Automotive components)

SACHSEN: Hitachi Automotive Ansaldo STS (Signalling systems) RIOM: Systems Europe ANGERS: Chassis Brakes International (Automotive components) (Automotive components)

ZATEC: Hitachi Cable Europe (Brake hose) BUELNA: Chassis Brakes International Hitachi Automotive Systems Europe (Automotive components) (Automotive components)

BURSA: Chassis Brakes International ABRANTES: Chassis Brakes International (Automotive components) (Automotive components)

PISTOIA, NAPLES, Hitachi Rail REGGIO CALABRIA: (Rolling stocks) TITO SCALO: Hitachi Rail (Rolling stocks)

COPENHAGEN: European Big Data Laboratory (Since 2015 Analytics, Healthcare)

MAIDENHEAD: European R&D Centre Headquarters

LONDON: Hitachi Experience Design Laboratory (Since 1989 User research, Service & Experience design, future concepts) Transportation, Energy & Environment MUNICH: Automotive & Industry Research Research Laboratory (Since 2011 Rail, Laboratory systems, Energy) (Since 2005 Rail, Automotive systems, European Big Data Laboratory (Since Industry) 2013 Analytics, Healthcare)

Hitachi Cambridge Laboratory CAMBRIDGE: (Since 1989 Leading-edge Physics Spintronics, Quantum information, Next- generation SEM)

Automotive & Industry Research Transportation, Energy & SOPHIA Laboratory PISTOIA: Environment Laboratory ANTIPOLIS: (Since 2000 Automotive systems, (Since 2018) Industry)

IT ENERGY INDUSTRY

•Systems Integration •Storages •Nuclear Energy •Industry & Distribution Solutions •Consulting •Software •Transmission & Distribution •Water & Environment Solutions •Analytics •ATMs Systems •Industrial Products •Cloud Services •Control Systems •Servers

MOBILITY SMART LIFE

•Railway Systems •Medical Equipment (Rolling stocks, Signaling systems, •Powertrain System, Chassis System, service & maintenance) ADAS related System •Elevators & Escalators (service & maintenance)

CONSTRUCTION METALS MACHINERY

•Hydraulic Excavators •Specialty Steel Products •Wheel Loaders •Magnetic Materials and Applications •Mining Equipment •Functional Components and Equipment •ICT Construction Solutions •Wires, Cables and Related Products •Maintenance and Service Solutions •Mine Management Solutions

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 levels of demand in the major industrial sectors Hitachi serves; 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; 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; 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; 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; credit conditions of Hitachi’s customers and suppliers; 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 continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance for such products; uncertainty as to Hitachi’s ability to attract and retain skilled personnel; increased commoditization of and intensifying price competition for products; 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 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 by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness; the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures; general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United States and Europe, 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 cost structure overhaul; uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property; uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity-method associates and joint ventures 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 by natural disasters such as earthquakes and tsunamis, the spread of infectious diseases, and geopolitical and social instability such as terrorism 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; and uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee benefit-related costs. The factors listed above are not all-inclusive and are in addition to other factors contained in other materials published by Hitachi.