Hitachi in Europe 2020 © Hitachi Europe Ltd. 2020 . All rights reserved. Contents 1. Overview of Hitachi 2. Introduction of European Business © Hitachi Europe Ltd. 2020 All rights reserved. 2 Overview of Hitachi © Hitachi Europe Ltd. 2020 . All rights reserved. 1-1. Corporate foundation • 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 © Hitachi Europe Ltd. 2020 . All rights reserved. 4 1-2. Hitachi Group Identity 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 Europe Ltd. 2020 . All rights reserved. 5 1-2. Hitachi Group Identity © Hitachi Europe Ltd. 2020 . All rights reserved. 6 1-2. Hitachi Group Identity “Hitachi delivers innovations that answer society’s challenges. With our talented team and proven experience in global markets, we can inspire the world.” © Hitachi Europe Ltd. 2020 . All rights reserved. 7 1-3. Corporate Data 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) © Hitachi Europe Ltd. 2020 . All rights reserved. 8 1-4. Business Segment Constitution (FY2019) 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% * The figures are based on the new segment classifications effective from FY2019 © Hitachi Europe Ltd. 2020 . All rights reserved. 9 1-4. Business Segment Constitution (FY2019) 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 Europe Ltd. 2020 . All rights reserved. 10 1-4. Business Segment Constitution (FY2019) 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% *1 As of April 1, 2019, Power BU changed its name to Energy BU. © Hitachi Europe Ltd. 2020 . All rights reserved. 11 1-4. Business Segment Constitution (FY2019) 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% © Hitachi Europe Ltd. 2020 . All rights reserved. 13 1-4. Business Segment Constitution (FY2019) 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 © Hitachi Europe Ltd. 2020 . All rights reserved. * Revenues: FY2019, Number of companies and employees: As of end of FY2019 15 1-5. Global Expansion (FY2019*) 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 © Hitachi Europe Ltd. 2020 . All rights reserved. * Revenues: FY2019, Number of companies and employees: As of end of FY2019 16 1-5. Global Expansion (FY2019*) 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 © Hitachi Europe Ltd. 2020 . All rights reserved. * Revenues: FY2019, Number of companies and employees: As of end of FY2019 17 1-5. Global Expansion (FY2019*) 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 © Hitachi Europe Ltd. 2020 . All rights reserved. * Revenues: FY2019. Number of companies and employees: As of end of FY2019 18 1-5. Global Expansion (FY2019*) 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 © Hitachi Europe Ltd. 2020 . All rights reserved. * Revenues: FY2019, Number of companies and employees: As of end of FY2019 19 1-6. Hitachi’s solutions to increase the three values 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 Product Product Product Product Product © Hitachi Europe Ltd. 2020. All rights reserved. 1-5. Solving issues caused by COVID-19 through Social Innovation Business “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 OT:© Hitachi Operational Europe Ltd. 2020. Technology All rights reserved. © Hitachi, Ltd. 2020. All rights reserved. 21 1-6. Lumada 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 OT:© Hitachi Operational Europe Ltd. 2020. Technology All rights reserved. © Hitachi, Ltd. 2020. All rights reserved. 22 1-7. Leading in environmental values 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 © Hitachi Europe Ltd. 2020. All rights reserved. © Hitachi, Ltd. 2020. All rights reserved. 23 1-8. Creating social values and environmental values: activities and achievements