Rail Systems Business Strategy Hitachi IR Day 2015

June 11, 2015 Alistair Dormer

Vice President and Executive Officer Global CEO, Rail Systems Business Hitachi, Ltd.

1. Business Overview 2. Key Achievements 3. Business Performance and Updated Forecasts 4. Market Environment and Industry Trends 5. Acquisition of Ansaldo STS and AnsaldoBreda 6. Conclusion 7. Appendix A: Supplementary Information

Rolling Stock Japan Transportation Service Components and Rail Control Systems Equipment Solutions

• Shinkansen • Turn-key solutions • Whole life • Traction converters • Automatic Train Protection • Commuter  Metro Systems maintenance • Auxiliary converters • Interlocking systems • Intercity  Monorail systems • Remote condition- • Traction motors • Communication-Based • Metro • Operations and based monitoring • HVAC Train Control • • • Train Control and maintenance Overnight servicing Platform gates Monitoring System • PPP Projects • Cleaning • Substation Equipment  • Traffic Management System Train Lease • Wheel turning • Measurement Train • European Train Control • Fuelling Equipment System

• Overhauls • Traction transformers

Information Rolling Stock Int’l Solutions

• AT100 – Metro • Passenger • AT200 – Commuter Information System • AT300 – Intercity • Digital Signage • AT400 – Very High • Visual Information Speed Train System

* Transport management Rolling stock systems 75% and control systems 25%*

* Based on FY2014 Revenue PPP : Public Private Partnership

1-2. Solid FY2014 performance vs forecasts

(Based on US GAAP)

Revenues Op. Income Ratio

Forecast Actual Forecast Actual ¥154.0B ¥171.4B 4.0% 4.6%

Chg (Billion yen):+17.4 Chg (bps): +60 Chg (%): +11.3

Free Cash Flow EBIT EBIT Ratio

Forecast Actual Forecast Actual Forecast Actual ¥-11.0B ¥6.9B ¥3.7B ¥12.9B 2.4% 7.5%

Chg (Billion yen): +17.9 Chg (Billion yen): +9.2 Chg (bps): +510 Chg (%): N/A Chg (%): +248.6

Order Intake Order Backlog

Forecast Actual Forecast Actual ¥400.0B ¥479.9B ¥752.6B ¥818.5B

Chg (Billion yen): +79.9 Chg (Billion yen): +65.9 Chg (%): +20.0 Chg (%): +8.8

Inauguration of Hokuriku Arrival of the first IEP train Daegu completed

 Production of  Arrival of the first  Completion of Kanazawa / pre-series Class the Daegu Metro Hokuriku 800 train for IEP Line 3, the first Shinkansen E7/W7, at the port of monorail COSMOS, DS-ATC, Southampton, UK. train in Korea. power supply, Platform gate.

Signalling system operational UK factory on schedule Singapore Office Established

 Beginning operations for the ATACS  Construction  Set-up of on Senseki line. works for the new Singapore rail

Train Existence Supervision System Management System Management Equipment (Management of Equipment Equipment System Monitor System & On-board ID) (for facilities) (for Transportation) factory (Newton office.

LAN LAN Aycliffe, UK) are New engineering

ATACS Network well under way… team recruited. Ground Controller Ground Controller Ground Controller Ground Controller (Tagajyou) (Higashishiogama) (Aobadori) (Miyagino) Field Controller Man-machine Maintenance PC PC System Monitor

CTC Device On-board ID LAN detection device ….as per our

Field LAN

Field Controller Field Controller schedule, the factory LMA (Limit of Movement Authority)

Radio Base Station Train Location will be completed and

On-Board Control train production will Equipment Speed Check Profile

Transponder On-Board ID On-Board ID start by September Point Level Crossing On-Board LMA (Limit of Movement Authority) Transponder 2015. Introduction of Energy Savings UK depots on schedule Ho Chi Minh metro project

 Visualisation of  North Pole depot  Turn-Key project power supply / was completed in for Ho Chi Minh on-demand March 2015 with metro (Vietnam) power control, Bristol, Swansea is proceeding B-CHOP*,RPC. and Doncaster according to being constructed programme. on time.

* B-CHOP:Energy Storage for Traction Power Supply System ATACS : Advanced Train Administration and Communication System COSMOS : Computerized Safety Maintenance and Operation Systems of Shinkansen RPC : Railway Static Power Conditioner DS-ATC : Digital communication and control for Shinkansen - ATC IEP : Intercity Express Programme © Hitachi, Ltd. 2015. All rights reserved. 6 2-2. … and successfully secure new orders in wide countries and regions

England Scotland Russia China RS/Services RS/Services Components Signalling

Preferred bidder for 29 Inverters for St trains for First 70 trains for Petersburg Signalling for Great Western Abellio ScotRail Metro LRT in Zhuhai Japan RS E7/W7 for East Japan Railway Company and West Japan Railway Company

England RS/Services

Financial Close for 65 trains for IEP ECML

Japan RS N700A for Central Japan Railway Company and West Japan Qatar Myanmar Singapore Taiwan Railway Company Doha Metro Signalling Signalling RS Upgrade Part of Signalling for Sentosa Tilt trains for consortium for Yangon, Monorail with Taiwan Railway Qatar Rail Mandalay CBTC Administration RS : Rolling Stock ECML : East Coast Main Line LRT : Light Rail Transit © Hitachi, Ltd. 2015. All rights reserved. CBTC : Communication-Based Train Control 7 2-3. We are executing our strategy…

Our Strategy 1 Implementation of a global organisation

● Europe ● China 1 Implementation of a global organisation • Global HQ established • Established signalling / control system • New office set up in Glasgow manufacturing base •  • New HRE executive management Expanded electrical component Implementing the new global organisation structure manufacturing bases  Expand existing bases  Develop market localisation ● ● ● Japan ● ▲● • Enhanced the role as 2 Transformation of the business model / portfolio ● technology hub ▲ • Enhance relationship with ▲▲ Middle East ▲ Japanese customers  Reshape the business portfolio • Started project  Expand and enhance the product portfolio execution and market studies ▲ ▲▲ South America 3 Innovation • Staff dispatched for market studies ▲  Total rail systems solutions ▲ India ▲Southeast Asia ▲ • Established new engineering  Intensive R&D investment • Sales Vice President Expand / Enhance Existing Bases recruited for business centres in Ho Chi Minh City expansion • Singapore office opened for ▲ Project Teams signalling business Sales Offices

2 Transformation of the business model / portfolio 3 Innovation SiC Inverter  Component Assembly System Service R&D investment in SiC inverter

Hybrid train  Expand and  Bigger  System  Continue to  enhance production integration secure Hybrid (Battery + Engine) train product capability capabilities maintenance portfolio  Construction  Production contracts AT100, AT200, AT300 and AT400  Production of Newton started for  New contracts of SiC Aycliffe plant Ho Chi Minh include IEP  Modularised prototype developed and launched in UK Converter on schedule City Turn- ECML and  New contract  Handover key project Abellio for Sentosa expected on  New ScotRail Remote condition monitoring Monorail the 1st of contracts for  Depot  Next generation Remote Condition Monitoring, including with CBTC September Myanmar construction Big Data 2015 and Quatar on track

On February 24th, 2015 the Boards of Directors of Hitachi, Ltd. and Finmeccanica S.p.A. announced that they had signed binding agreements for the sale and purchase of:

Hiroaki Nakanishi and Prime Minister Renzi the majority of the current business of AnsaldoBreda S.p.A., with the exclusion of some revamping activities and certain historical contracts

the entire interest owned by Finmeccanica in Ansaldo STS S.p.A., equal to approximately 40% of the share capital

Alistair Dormer, Minister Guidi, Mauro Moretti

-Newco Businesses Business Segments Businesses Business Segments Signalling systems  High Speed Rolling Stock  High Speed Design and production of  Main Lines and Freight AnsaldoBreda specialises in  Main Line signalling systems and  Metros and Tramways the construction of  Mass Transit components for railways andboth  Equipment and Components technologically advanced  Driverless Metros waysideunderground and oninfrastructure-board  Computer Based rolling stock.  Trams Interlocking  Locos Turn-Key Solutions  Planning, Supervision and  Services Design and productionengineering of of Traffic Control integrated transport systems  Turn-Key Solutions

(Based on US GAAP) Orders (Billion yen) Revenues (Billion yen) OP Income (Billion yen / %) 7.5% 600.0600 300.0300 25.025 479.9 4.5% 4.0% 4.6% 400 200 20.020 3.4% 400.0 200.0 168.2 171.4 15.0 400 296.7 200 146.7 154.0 15.015 8.0 152.4 180 10.010 7.6 200.0200 100.0100 5.0 6.2 5.05

0.00 0.00 0.00 FY2012 FY2013 FY2014 FY2014 FY2015 FY2012 FY2013 FY2014 FY2014 FY2015 FY2012 FY2013 FY2014 FY2014 FY2015 Results Results Forecast Results Forecast Results Results Forecast Results Forecast Results Results Forecast Results Forecast

Order backlog (Billion yen) Cumulative OP CF (Billion yen) - From FY2012 EBIT (Billion yen / %) 7.5% 7.5% 36.8 1200.01,200 %:Overseas ratio 46% 40.040 25.025 35.035 29.0 3.9% 818.5 20.020 3.6% 752.6 30.030 2.4% 15.0 800.0800 697.4 25.025 15.015 12.9 20.0 396.8 438.7 20 12.3 10.010 6.6 400.0400 15.015 5.2 7.3 3.7 10.010 4.5 5.05 5.05 0.00 0.00 0.00 FY2012 FY2013 FY2014 FY2014 FY2015 FY2012 FY2013 FY2014 FY2014 FY2015 FY2012 FY2013 FY2014 FY2014 FY2015 Results Results Forecast Results Forecast Results Results Forecast Results Forecast Results Results Forecast Results Forecast

Cash flow generation initiatives * Improving all 3 key metrics

6.0 118.7 days  Cash Conversion Cycle Reduction of lead time 5.0 SG&A to Sales Ratio 111.0 days  Vendor Managed Inventory (VMI) 4.0 110.2 days  3.0 Global supply chain management 3.6 2.5 2.0  2.4 Strategic investment with high return 1.2  1.0 Intensive post-investment monitoring 0.0 Improvement point -1.0 Gross Margin -2.5 -2.0 94.1 days -1.1 -3.0 FY2012 FY2013 FY2014 FY2015 Results Results Results Forecast

Orders 152.4 479.9 180.0 (Billion yen) Service 8.4% 10.6% 10.6% 10.6% 10.6% revenue ratio Overseas 35% 38% 62% 38% 62% revenue ratio Revenues Operation (Billion yen) income*1 (Billion yen) 200 200.0 200.2 168.2 171.4 167.4 150 20 8.9% 8.1% 8.1% 7.5% 7.5% 7.5% 100 4.6% 4.8% 4.5% 3.9% 10 15.0 15.0 14.9 16.2 16.2 50 12.9 7.6 6.6 8.0 8.0 0 0 2013 2014 2015 2014 2015 (Results) (Results) (Forecast) (Results)*2 (Forecast) US GAAP IFRS

Revenues Operating income (Adjusted operating income) EBIT

Operating income ratio(Adjusted operating ratio) EBIT ratio

* 1 “Operating income (ratio)” is presented as “ Adjusted operating income (ratio)” in IFRS (an "Adjusted Operating Income" presented as revenues less cost of sales as well as selling, general and administrative expenses) * 2 Unaudited © Hitachi, Ltd. 2015. All rights reserved. 12 3-3. We expect further growth and success in 2015

FY2015 US GAAP IFRS

Revenues 200.0 200.2 (Billion yen) Overseas 62 62 revenue ratio (%) Operating 7.5 8.1*1 income ratio (%)

EBIT ratio (%) 7.5 8.1

 2 Gross margin improvement 120bps (vs FY12) HSTP results *  SG&A to revenue ratio improvement 250bps (vs FY12)

High quality backlog supports targets on profitability Maximise on global supply chain Evidence of transformed business model improving margins Innovative investments with high returns * 1 IFRS based on after operational profits adjustment * 2 Based on US GAAP HSTP : Hitachi Smart Transformation Project © Hitachi, Ltd. 2015. All rights reserved. 13 Rail Systems Business Strategy Contents

Urbanisation and environmental factors continue to drive growth in the rail sector

*1 Accessible World Rail Market Growth – by product *3 CO2 emissions targets and rising fuel 100.7 118.7 price will drive the (Billion euro) (Billion euro) electrification of lines 13.4 3.3% and the use of rail

Environmental Environmental Rail Control 11.0 24.6 3.3% Infrastructure 20.3

2 Denser urban areas will provide opportunities for rail, 44.1 1.6% such as metro, to Rolling Stock 40.0 reduce crowding and improve predictable transit times, 36.7 3.7% ensuring that density Services 29.4 Urbanisation* works efficiently 2011-2013 2017–2019 CAGR Strong growth is expected in India and South East Asia

Market situation – Region by Region Accessible World Rail Market Growth – by region *3 Japan Steady but highly competitive 102.2 120.7 (Billion euro) (Billion euro) UK Positive - increase in renewals 5.8 5.7% 7.6 China Localisation and consolidation increase 1.4% Latin America 4.1 7.7 Europe Flat - although still demand for double deck coaches MEA 7.0 12.6 1.3% 7.1 India Strong potential demand Eastern Europe 0.8% CIS 12.0 South East Asia Competition limited due to ODA loans 27.7 3.7% 22.2 Middle East Large projects in progress - localisation NAFTA North America Significant potential - metro and locomotive demand 35.5 2.2% Oceania Steady with a demand for specific projects Western Europe 31.1 South America / Brazil Significant potential 23.9 4.2% Russia / CIS No large projects - demand for metro Asia Pacific 18.7

Trends : Increase Steady CAGR : Compound Annual Growth Ratio 2011-2013 2017-2019 CAGR * 1 Source:http://www.chinadaily,com.ch/ * 2 Source:http://catalystreview.net * 3 Source:UNIFE World Rail Market Study © Hitachi, Ltd. 2015. All rights reserved. 15 4-2. There is a clear trend towards consolidation in the sector

The global rail sector is witnessing a clear trend towards consolidation *

Recent rail deals: Asia Rolling Stock Global Integrated Nov 12 – Siemens acquisition Providers % of sales in home market Rolling stock of Invensys Rail Rolling stock and systems % Home market – Asia Pacific Oct 13 – Hyundai Rotem IPO Systems % Home market – Europe Jun 14 – Alstom acquisition of 93% Locomotives Home market – Americas GE rail signalling business % Turn- key ( Full line ups) Sep 14 – CNR / CSR 31.7 announced the merger

Near future: 91% 1.Rail industry poised for further consolidation 16.9 95%

2.Likely polarisation between global fully integrated rail 14.8 68% providers and global component suppliers 16%

8.5 58% 81% 45% 6.8 6.2 44%n/a 58% n/a n/a n/a n/a n/a 34% 74% 51% 3.3 3.1 2.7 n/a 85% n/a 2.4 2.1 1.8 1.4 1.4 1.3 1.3 1.1 0.7 0.3 2014 Revenues(Billion Euro)

Metro / Trams               Locos               HSR              Commuter               Services              Turn-key      Global Integrated Providers * Source:Company Annual Reports and Hitachi Rail analysis © Hitachi, Ltd. 2015. All rights reserved. 16 4-3. Market demands and IoT will drive true integration

The market is looking for rail providers capable of offering fully integrated solutions *

Integrated Turnkey/ PPP  CAGR Likely polarisation between global fully integrated rail 3.5% providers and global component players

Full Offering Rolling Stock Business model diversification expected to lower risk CAGR 1.6% profile and enhance growth and profitability Specialist Signalling CAGR Reduced overdependence on a specific product to allow 3.3% Globally Integrated Limited for more flexibility in terms of business selection Stock Rolling Capabilities Hybrid Platform Limited Signalling Full Systems Specialists System and Turnkey Big Data and Internet of Things will drive truly integrated transport solutions

Next generation signalling will Critical data Increase capacity, (location, maintenance history, traffic density and result in usage ratio) lower waiting time for passengers linked to real-time events

Passengers immediately informed Predictive models will be about delays and missed elaborated to constantly check the connection with suggestions for conditions of the assets that could alternative itineraries cause potential faults

Live integrated Reduced gate lines and crowding customer experience at stations

* Source:Hitachi Rail analysis and CAGR for 2017 to 2019 from UNIFE World Rail Market Study © Hitachi, Ltd. 2015. All rights reserved. IoT : IoT:Internet of Things 17 Rail Systems Business Strategy Contents

Hitachi Rail

-Newco  Acquisition of the entire 40% stake owned by  The purchase of AnsaldoBreda’s assets for 36 million Finmeccanica in Ansaldo STS euro, with the exclusion of some revamping activities and certain residual contracts, from Finmecanica  The ex-dividend purchase price* for Ansaldo STS is 9.50 euro, resulting in a total consideration of  Historical liabilities (e.g. projects suffering major 761 million euro and a total equity value of losses) will not to be transferred 1.9 billion euro for 100% of Ansaldo STS share capital  The perimeter includes 3 manufacturing plants in Italy (Pistoia, Naples, Reggio Calabria) and 1 in  Following the acquisition of the 40% stake , Hitachi USA (Pittsburgh) will launch a mandatory tender offer on the outstanding Ansaldo STS shares

Estimated Timeline to Completion

24 Feb 1H 2015 2H 2015 2H 2015 2015

Transaction Anti-trust Clearance Process / Filing and Clients / Closing Mandatory Tender Offer Announcement Consortia Change of Control Process

* The Offer Price of 9.50 euro is adjusted for Ansaldo STS dividend of 0.15 euro, which had been paid to shareholders on 20 May 2015 © Hitachi, Ltd. 2015. All rights reserved. 19 5-2. Ansaldo STS is a global leader in rail systems *1

Key strengths and capabilities 1 Proven ability to win new orders

Total 2009-2014 ca. Unparalleled ability to win orders demonstrated over time Jumbo Orders 1 Order Intake 11 billion euro Orders (ca.11 billion euro since 2009) (million euro) A significant portion (ca. 3.6 billion euro) are related to “jumbo” 2,164 1,985 projects usually characterised by higher margins 1,786 1,825 842 798 1,492 1,484 513 2 Ansaldo STS can rely on a wide set of innovative technological 541 solutions and expertise to which competitors do not have access 408 511

Successful completion of some of the most complex and critical 1,245 1,322 1,312 3 1,187 1,084 972 projects including Turn-key

2009 2010 2011 2012 2013 2014

2 Unique technological expertise 3 Execution capabilities

Businesses Business Segments Copenhagen Metro Turn-key  Driverless technology, fully automatic Signalling systems and  High Speed  “World’s Best Driverless Metro” in 2009 and 2010 components  Main Lines and  “World’s Best Metro” in 2008 Design and production of Freight signalling systems and  Metros and Tramways High Speed components for railways both  Equipment and  Over 30 years of expertise in High Speed rail: wayside and on-board. Components  Italian High Speed Network  Computer Based  Paris to London High Speed Line Interlocking  High Speed Line connecting Madrid to Lleida Railways, Mass Transit and   Planning, Seoul to Pusan High Speed Line (Korean TGV) Turn-key Supervision and Design and engineering of Rome Termini Station ACC Traffic Control  Automatic train traffic control system controlling the train traffic integrated transport systems  including proven Turn-key Operation and through the entire Rome network maintenance capabilities  Only one in the world of such a large scale

2014 Snapshot – from 2013 to 2014 (million euro)

Revenue +6% EBITadj +0.4p.p. Net Result +7.9% Net Debt 19.5% Equity 15.2% FCF +66.4 from 1,230 to 1,304 from 9.6% to 10% *2 from 75 to 81 from -246 to -293 from 499 to 575 from 9 to 76 * 1 Source:Company Annual Reports Ansaldo STS Analyst Conference March 9th 2015 ACC : Apparato Centrale Computerizzato * 2 before restructuring © Hitachi, Ltd. 2015. All rights reserved. 20 5-3. AnsaldoBreda will enhance rolling stock capacity

Key Strengths and Capabilities 1 Engineering and Construction Capabilities

1 Unique expertise in engineering and construction solutions for a 50 VHS trains wide range of products internationally ETR 1000 Max speed of 360 km/h 2 Global presence in the rolling stock market, with manufacturing bases in mainland Europe and the USA 30 trains for ATM METRO Driverless, air conditioning and Milan 3 A market leader in the mass transit segment (driverless), video surveillance system competing effectively with players of larger scale Metro Driverless 28 trains with 3 cars each Copenha Max speed 90 km/h gen

80 driverless cars Honolulu Max speed 105 km/h

2 Global References 3 Strong Positioning in Mass Transit

Contracts Awarded Metro – Low Capacity (excluding US) *

Market Trend (million euro) Main Players ETR 1000 300 (2010) 230 Bombardier, A.Breda Alstom, CAF Metro Metro Lima Vossloh, Stadler, Rotem Honolulu (2014) (2011) Avg. 2009-13 Avg. 2014-18 Metro – Medium Capacity (excluding US) *

Market Trend (million euro) Main Players 3,210 2,400 Alstom, Bombardier, CAF Metro Metro Siemens, CNR/CSR, Rotem, A.Breda Milan Miami (2012) (2012) Kawasaki Heavy Industries, Ltd. Avg. 2009-13 Avg. 2014-18 * Source:All Hitachi Rail Analysis VHS : Very High Speed ATM : Azienda Transporti Milanesi © Hitachi, Ltd. 2015. All rights reserved. 21 5-4. Rationale is underpinned by core three elements

 Build on stated growth /  Competitive landscape expansion objectives characterised by a trend towards consolidation

 Acquire business volumes and  Become an active player manufacturing capacity in the competitive arena (vs. reactive to

competitors’ moves)

1 Implementation of a global organisation

2 Transformation of the business model / portfolio

3 Innovation – forefront of technological development

Hitachi Rail Ansaldo STS Ansaldo STS | AnsaldoBreda Hitachi Rail | Ansaldo STS | AnsaldoBreda

Sales by Geography (FY2014) *

MEA Asia Pacific MEA MEA 0% MEA 3% 3% 4% Asia Pacific 7% 12% Italy Americas Asia Pacific 25% 9% Japan 19% 26% Asia Pacific Rest of 29% Europe Americas 26% Japan Rest of 62% + + Europe 7% Rest of 3% Italy Europe Italy Rest of 21% 26% Americas 82% Europe 13% 23% * Source: Company Annual Reports © Hitachi, Ltd. 2015. All rights reserved. 23 1 Global 2 Transform 3 Innovate 5-6. …by increasing and globalising our footprint…

Newton Aycliffe, Pittsburg, USA Pistoia, Italy Naples, Italy Mito(rail), Japan Type: Assembly / UK Type: Assembly Type: Components Type: Components Testing Type: Assembly Size: 107,000 m2 Size: 58,850 m2 Size: 28,000 m2 Size: 19,300 m2 Size: 42,000 m2

Riom, France Naples, Italy Type: Manufacture Type: Manufacture

Reggio Calabria, HYC, China * HYEE, China * Kasado, Japan Batesburg, USA Type: Components Italy Type: Components Type: Components Type: Manufacture and Assembly Type: Assembly Size: 19,800 m2 Size: 14,300 m2 Size: 63,300 m2 Size: 130,000 m2

Hitachi Rail Ansaldo STS AnsaldoBreda * JV with CNR. HYEE : Hitachi Yonge Electric Equipment (Xi'an) Co., Ltd. HYC : Hitachi Yonge Electric Equipment (Changchun) Co., Ltd.) © Hitachi, Ltd. 2015. All rights reserved. 24 1 Global 2 Transform 3 Innovate 5-7. …and expanding our sales base and localisation

Hitachi Rail Project Offices

Hitachi Rail Regional Offices

STS Head Office (Genoa, Italy)

STS Regional HQ / Offices

Headcount by Country

*1 Ansaldo Ansaldo Ansaldo Ansaldo Ansaldo Ansaldo Country Hitachi *2 Country Hitachi Country Hitachi STS Breda *3 STS Breda STS Breda

Italy - 1,468 1,916 UK 325 - - India 9 202 -

France - 567 - US / Canada - 730 37 Malaysia - 55 -

Spain - 166 7 Australia - 456 - China 21 69 -

Sweden - 56 - Japan 2,692 - - Others 94 30 8

Total 3,141 3,799 1,968 * 1 Hitachi: As of the end of March, 2014 * 2 Ansaldo STS: As of the end of March 2014 * 3 AnsaldoBreda: As of the end of September, 2013 © Hitachi, Ltd. 2015. All rights reserved. 25 1 Global 2 Transform 3 Innovate 5-8. We have a complementary product mix…

Systems

TMS Signalling ERTMS Turnkey

Combined

Rolling Stock

Commuter HSR Locos Monorail Trams Metros

Combined

Full Range Comprehensive Range Partial Range Presence No Products

TMS : Traffic Management System. ERTMS : European Rail Traffic Management System HSR : High Speed Rail © Hitachi, Ltd. 2015. All rights reserved. 26 1 Global 2 Transform 3 Innovate 5-9. …that transforms us into a global player

 The combination of Hitachi Rail, Global A Ansaldo STS and AnsaldoBreda Global B creates a company with a full Asia A Global C product offering – a transformational event for us and the industry

 Hitachi’s reliable product solutions Europe A Full offering

and IT technology can more fully leverage AnsaldoBreda’s product platforms and Ansaldo STS’s unique signalling/ turn-key expertise.

 Hitachi’s brand and corporate Europe C presence can support further growth Americas A for the new business Europe D Specialist Americas B

Asia C Rolling Stock Capabilities

Asia B Europe B Limited

Limited Signalling Full Systems System and Turn-key

Specialists Hybrid Platform Globally Integrated

Wayside V-train 3 Monitoring

Traffic Control for Mining

Satellite Next Gen Signalling Monitoring

State of the High Speed Art Lab at Train Tito Scalo

Engineering Driverless Centre of Rolling Stock Excellence

 Surpassed forecasts for FY 2014 successfully delivering large contracts

 Start the year with record ¥818.5B backlog of exceptional quality

 In FY2015 forecast ¥200B sales and 7.5% EBIT ratio

 Rail industry displays steady GDP growth – Hitachi exceeding this and gaining share

 The Ansaldo STS and AnsaldoBreda acquisitions are a transformational event placing both companies at the forefront of the industry

 Hitachi, Ansaldo STS and AnsaldoBreda together create a globally integrated systems provider

 The Ansaldo STS and AnsaldoBreda acquisitions accelerate our strategic plan to be more global, transform the business model and innovate

Project Overview (Largest UK Rolling Stock PPP)  Customer : UK Department for Transport  No. of rolling stocks : Total 866 cars with 27.5 years’ maintenance  Delivery : 2017 - 2019  Procurement method : PPP (Public Private Partnership) Progress • The first train is undergoing dynamic testing at Network Rail’s test site. • Night time test runs on a designated section of the East Coast Main Line, known as a Signal Protected Zone (SPZ), have also started. • Testing will be undertaken in various train formations applicable to the delivery of the IEP fleet. • The second train has now arrived at the test site, where it will support the type testing programme • The Newton Aycliffe factory has been awarded Gold at the 2015 Considerate Constructors Award • Newton Aycliffe will be completed and train production will start by September 2015 Project Schedule Calender Year 2012 2013 2014 2015 2016 2017 2018 2019

Great Prototype Design and production Test run in UK Western Mass product Design Production Main Line We are here Product acceptance

Prototype East Coast Design and production Test run in UK Main Line Mass product Design Production Product acceptance Production Site Construction Completed Production

Car body: Newton Aycliffe, Newton IEP front mask Under testing area Aycliffe, image mock-up production at Kasado works

Being Nominated as preferred bidder in March 2015 and procuring WoE based on the success of the Class 800 and Class 395

Project Overview

 Customer : First Group  No. of rolling stocks : 22 x 5-car Bi-Mode unit, 7 x 9-car Bi-mode unit (Total 173 cars, 29 unit)  Delivery : Dec 2018

Inverness

Aberdeen

Glasgow Edinburgh East Coast Newcastle Main Line

Harrogate Hull

Lincoln Doncaster Kings Lynn

Carmarthen Hereford Cardiff Bristol TM Swansea London Great Western Reading Main Line Plymouth Penzance

New train and maintenance for the Abellio franchise in Scotland, introduction of our AT200 series to the UK

Project Overview

 Customer : Abellio  Contract : Completed the contract on March 3rd  Local office : Open new office in Scotland  Delivery : 70 train sets (2017/12)  Maintenance : 2017/12-2026/12 (10 years)

Project Schedule

Calender Year 2015 2016 2017 Jan-Jun July-Dec Jan-Jun July-Dec Jan-Jun ▲ Kasado Train1 (Kasado) Design (Train1) delivery June 2016 Production Transport We are here Test Kasado Assemble (Train2-7) * Newton Aycliffe TP (Train 8-70) Production

“Urban Railway Line 1” in Ho Chi Minh City, Vietnam: Design submitted for customer approval. Production to start from 2015.

Project Overview (1st Turn-key business in Vietnam)

 Customer : Management Authority for Urban Railways of the People’s Committee of Ho Chi Minh City  Line length : 19.7km (underground and elevated line)  Contract scope : Prime contractor – E & M package  17 train sets (total of 51 cars)  Signalling and telecommunication system  Power supply system  Depot facilities, etc. Ho Chi Minh City Line 1 (Image)  Maintenance: 5 years maintenance following the start of commercial operations Project Schedule

Calender Year 2013 2014 2015 2016 2017 2018 2019

Design Production Delivery of 1st train set E&M package Installation/Test Integration Completed mock-up Start commercial operation We are here Maintenance (5 years)

Daegu Urban Railway Line 3 Monorail System (Korea): Train set delivery completed and commercial operation started on April 23rd

Project Overview

 Line Length : 24 km (Elevated double track)  Number of Stations : 30 Stations  Car Depot : 2 Places  Contract Scope : Monorail cars (84 cars), track switch and signalling system

Monorail cars in siding

Project Schedule

Calender Year 2008 2009 2010 2011 2012 2013 2014 2015

Design Rolling Stock Production Commissioning/Tests We are here Design Signalling Production Commissioning/Tests

System Inspection/Trial Run

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, including, without limitation, the information, 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 for such 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 other materials, 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 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;  uncertainty as to the success of cost reduction measures;  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 alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;  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 have become or may become parties;  the possibility of incurring expenses resulting from any defects in products or services of Hitachi;  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 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;  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 other materials published by Hitachi.