© Hitachi, Ltd. 2017. All rights reserved.

Social Innovation Business for Italy

Toshiaki HigashiharaPresident & CEO

Hitachi, Ltd.

October 18, 2017

1© Hitachi, Ltd. 2017. All rights reserved.

The Evolution of Digital Technologies

Driving quality of life and economic growth

ROBOTICSARTIFICIAL

INTELLIGENCE

Overall optimization

Open

Outcomes

Individual optimization

Closed

Products

Everything-as-a-ServiceOwn

INTERNET OF THINGS

1© Hitachi, Ltd. 2017. All rights reserved.

2© Hitachi, Ltd. 2017. All rights reserved.

Increase in Uncertainty

Era of Uncertainty

Increasingly diverse

human values

Innovative services

Increasingly complex

social environment

Rapid changes

3© Hitachi, Ltd. 2017. All rights reserved.

Value

OT: Operational TechnologyEPC: Engineering, Procurement and ConstructionSI: System Integration 3© Hitachi, Ltd. 2017. All rights reserved.

Control and operation

Monitoring, analyzing, and forecasting

Hardware / Materials / EPC / SI

Providing new value that contributes to a richer society,through proven OT x IT x products and systems

Social Innovation Business

Products/systems

ITOT

4© Hitachi, Ltd. 2017. All rights reserved. 4© Hitachi, Ltd. 2017. All rights reserved.

An Innovation Partner for the IoT EraAccelerating collaborative creation and creating new value with

customers through the evolving Social Innovation Business

Finance / Public / Healthcare

Industry / Distribution /

Water

Power / Energy Urban

Hitachi’s “Ideal Form”

5© Hitachi, Ltd. 2017. All rights reserved.

Lumada

MRI

Car

Navigation

Construction

Vehicle

Server

Storage

ATMElevator

Pump,

Valve Steel

Plant

Lumada will connect all YOUR assets

Train

5© Hitachi, Ltd. 2017. All rights reserved.

6© Hitachi, Ltd. 2017. All rights reserved.

Social Issues in Italy

UrbanizationAging SocietyEnergyEfficiency

6© Hitachi, Ltd. 2017. All rights reserved.

7© Hitachi, Ltd. 2017. All rights reserved.

Focusing Business AreaProviding total solutions to resolve issues in Italy

Social Innovation Business for Italy

WaterRailway Energy Healthcare

7© Hitachi, Ltd. 2017. All rights reserved.

8© Hitachi, Ltd. 2017. All rights reserved.

Toward Italian Business Expansion

Approx.1.2 billion euro

1.5 billion euro

FY 2016

Revenues*1

FY 2020 Target

*1: Consolidated basis

Contribute to improving the quality of life in Italy

through the “Social Innovation Business”

Connect

Collaborative CreationValueCreating

New Value

9© Hitachi, Ltd. 2017. All rights reserved.

&