Hitachi Korea Profile CEO Message Global Innovation Together with Korea! Innovative Hitachi, Ltd. started business in Korea in 1962 in a form of the place of & Global sojourn affiliated with Hitachi, Ltd. Fast-forward to October 2009, Hitachi Korea Ltd. was launched through the merger of Hitachi, Ltd’s three former organizations (Hitachi Railways Systems Korea Ltd., Hitachi, Ltd. Korea Branch, and Hitachi East Asia Ltd. Korea Branch). In 2012, Hitachi Korea marked its 50th anniversary since it started business as Hitachi Group in Korea. Hitachi Group extends heartfelt thanks to stakeholders in various circles in Korea for giving Hitachi Group the opportunity to be able to contribute to diverse fields such as economy, industries and society in Korea over a long period of time for almost half a century. As you can feel in your everyday lives, economy, society and technolo- gies are changing at high speed. Once again, I am proud of Hitachi Group’s proposal and offering of diverse solutions to steadily growing Korean economy through such changes, and Korean business which is expanding its areas while playing an active role in all parts of the world. Hitachi Korea sincerely promises to continue its steady efforts to contribute to the Korean economy and industries more extensively with ‘Development of Social Innovation’ as a keyword by putting ‘One Hitachi’ into practice together with each company affiliated with Hitachi Group in Korea on the basis of the ‘Mission’ of ‘Contribution to Society through the Development of Excellent Independent Technologies and Products while displaying ‘Hitachi Business Start-up Values’, i.e. ‘Harmony’, ‘Sincerity’ and ‘Pioneering Spirit’ which have been inherited since the time of Hitachi business start-up. We earnestly ask for your warmhearted support for the time to come. Hitachi Korea Ltd. President and CEO Otani Toru 01 | 02 Outline of Hitachi Numbers with Hitachi Founded in Consolidated Hitachi Realizing the Value revenues *1 of Social Innovation Key Indicators 1910 8,767.2 year billion yen Consolidated number Consolidated adjusted of employees *3 operating income *1 *2 301,056 661.8 people billion yen *1 As of March 31, 2020 Japan: 162,100, Outside of Japan: 138,956 *2 total revenues less cost of sales and selling, general and administrative (SG&A) Number of consolidated Consolidated expenses. subsidiaries *3 R&D expenditure *1 *3 814 293.7 statement is prepared based on the companies billion yen International Financial Reporting Standards (IFRS). Japan: 173, Outside of Japan: 641 Business Segment Revenues and Constitution Share by Region *1 Overseas About Hitachi, Ltd., headquartered in Tokyo, Japan, is focusing on Social Innovation Hitachi, Ltd. Business combining its operational technology, information technology and IT Smart Life *2 48% % % products. The company’s consolidated revenues for fiscal 2018 (ended March 22 22 4,238.1 billion yen 31, 2019) totaled 9,480.6 billion yen ($85.4 billion), and the company has approximately 296,000 employees worldwide. Asia Hitachi delivers digital solutions utilizing Lumada in five sectors including 20% Mobility, Smart Life, Industry, Energy and IT, to increase our customer’s social, 1,767.5 billion yen environmental and economic value. For more information on Hitachi, please Mobility visit the company's website at www.hitachi.com. Hitachi 12% Construction Japan Machinery North America Industry % Hitachi Metals 10 % 52% % % 13 9 9 1,102.9 billion yen 4,529.0 billion yen Corporate Corporate name Hitachi, Ltd. (Kabushiki Kaisha Hitachi Seisakusho) Hitachi Chemical*1 Outline 7% Others Headquarters 6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8280, Japan Energy 5% Other Areas % 4 5% Products Social Innovation Business that combines 443.1 billion yen Europe & Services Operational Technology (OT), Information Technology (IT) and products 10% 924.4 billion yen Representative Toshiaki Higashihara Representative Executive Officer, Executive Chairman, President & CEO *1 Hitachi Chemical Company, Ltd. became a consolidated subsidiary of Showa Denko K.K. as of April 28, 2020. *1 As of March 31, 2020 *2 Hitachi High-Tech Corporation, which is included in Smart Life segment, became a wholly owned subsidiary of Hitachi, Ltd. on May 20, 2020. As a result of becoming a wholly owned subsidiary, results for FY2019 have also 03 | 04 Hitachi Group Identity The Hitachi Group Identity and Social Innovation Business Grounded in the Hitachi Group Identity, Hitachi Group Identity we will raise the social, environmental and economic value we provide to customers and aim to achieve a sustainable society by focusing on our Social Innovation Business. The present world is said to be an era of volatility, Originally set by Hitachi founder Namihei Odaira, the uncertainty, complexity and ambiguity (VUCA), in which Mission has been carefully passed on to generations the future is difficult to predict. Looking around the of employees and stakeholders throughout the world, we can see a wide variety of steadily approaching company's 110-year history. change that will have an impact on people's lives, including climate change, resource shortages, demo- The Values reflect the Hitachi Founding Spirit, which graphic changes due to aging and problems related to was shaped by the achievements of our Company urbanization. predecessors as they worked hard to fulfill Hitachi's Mission. The Vision has been created based on Since its establishment, Hitachi has operated under the Hitachi's Mission and Values. It is an expression of Mission expressed by its founder: “Contribute to society what the Hitachi Group aims to become in the future through the development of superior, original technolo- as it advances in its next stage of growth. The Mission, gy and products.” In accordance with this Mission, we Values and Vision are made to be shared in a simple have solved challenges facing society during each era concept: Hitachi Group Identity. through the development of social infrastructure technologies while raising people's quality of life (QoL) and, in recent years, contributing to the achievement of a sustainable society. Our Social Innovation Business accelerates collaborative creation with customers using the latest digital technologies in a wide range of fields, including social infrastructure. It also solves various issues faced by society and customers by taking advantage of the Hitachi Group's business bases; its total solutions, which combine the operational technology (OT), IT, products and systems it has cultivated over many years; digital solutions such as Lumada; and open innovation achieved through partnerships with operators worldwide. 05 | 06 History of Hitachi Korea Affiliates of Hitachi Korea Hitachi Korea’s History Hitachi Group of of Pioneering Work and Innovation Companies in Korea Hitachi Korea Ltd. Hitachi High-Tech Korea Co., Ltd. Sales of social infrastructure products (such as the rail Sales & repair service such as semiconductor & liquid system, health care, transmission & transformation of crystal manufacturing apparatus, electronic parts electric power, plant, electricity, and industrial installation & interpretation system, semiconductor & semiconductor, etc.), global procurement, linkage of electronic device products, and industrial & electronic intra-group IT service, and representative function of materials, etc., and trading company’s business Hitachi Group in Korea. Date 2009. 10 (1962. 04) Location Seoul Date 1978. 04 Location Seoul, Giheung, Icheon, Cheongju Hitachi has been making new history Hitachi Korea Ltd. in Korea since 1962 Hitachi Automotive Systems Korea Co., Ltd. Hitachi-LG Data Storage Korea, Inc. OHitachi Korea was newly launched in October 1, 2009 as an important Technical sales of automobile parts, and trends Research, development, production and sales of base company for Hitachi's global 2019. 04. President Otani Toru took office survey of the automobile market in Korea Blu-ray, DVD optical disk drive, wireless charger, business in Korea. 2016. 02. Office relocation (Youngpoong Building in Cheonggyecheon-ro, Jongno-gu, Seoul) and optical application sensor, etc. This was accomplished by 2015. 04. Opened the monorail system of Daegu Metropolitan Rapid Transit Line No. 3 integrating the Hitachi, Ltd. Korea President and CEO Takeuchi Keiji took office Branch, Hitachi Railways Systems 2015. 04. Date 1993. 05 Location Seoul Date 2000. 12 Location Seoul Korea Ltd., and Hitachi East Asia 2013. 10. President and CEO Hatatani Keiji took office Ltd. Korea Branch. 2012. 10. Celebrated Hitachi’s 50th anniversary of entering into the Korean business market Hitachi Metals Korea Co., Ltd. Pacific Metals Co., Ltd. 2011. 12. Relocated Hitachi Korea Ltd. Head Office to the Korea Chamber of Commerce & Industry building in Sejong-daero, Jung-gu, Seoul Sales and processing of Hitachi metallic materials, A business handling comprehensive magnetic high-quality special steel, materials related to materials; manufacturing and sales of ferrite electronics, and tool steel; manufacturing of magnet, cast magnet and rare-earth magnet sputtering target materials for a display device, and 2009. 10. Hitachi Korea Ltd. launched by integrating the management of three of its bases sales of the other products (in Gongpyeong-dong, Jongno-gu, Seoul) 2009. 05. Hitachi Railways Systems Korea Ltd. opened Daegu Branch Date 2015. 01 Location Seoul, Siheung, Pyeongtaek, Busan Date 1977. 01 Location Gumi 2008. 09. Hitachi Railways Systems Korea Ltd. won order for the monorail system of Daegu