Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2021)

26 slides from Hitachi's investor day presentation, Jun 8, 2021

1. Slide 1: Hitachi Investor Day 2021 Smart Life Sector

   Hitachi Investor Day 2021 Smart Life Sector June 8, 2021 Keiji Kojima Executive Vice President and Executive Officer General Manager of Smart Life Business Management Division © Hitachi, Ltd. 2021. All rights reserved.

2. Slide 2: Key Messages Today

   Key Messages Today 1 Promoting the Smart Life Business, which improves people’s QoL, by applying digital technologies • Improving QoL with equipment data x digital technologies and AI • Ensuring safety and security with environmentally friendly solutions FY2021 forecast: Revenues at 1.0 trillion yen

3. Slide 3: Contents

   Smart Life Sector Contents 1. Progress of the 2021 Mid-term Management Plan 2. Growth Strategy 3. Summary © Hitachi, Ltd. 2021. All rights reserved. 2

4. Slide 4: Contents

   Smart Life Sector Contents 1. Progress of the 2021 Mid-term Management Plan 2. Growth Strategy 3. Summary © Hitachi, Ltd. 2021. All rights reserved. 3

5. Slide 5: 1-1. Position of the Smart Life Sector

   4 Automotive Business Systems © Hitachi, Ltd. 2021. All rights reserved. Hitachi Astemo Smart Life Hitachi High-Tech Hitachi Global Life Solutions Services & Platforms BU Mobility Railway Systems BU Product Business Building Systems BU 1-1. Position of the Smart Life Sector Water & Environment Indus

6. Slide 6: 1-2. Business Portfolio

   1-2. Business Portfolio 1 Hitachi Astemo began to be disclosed as an independent sector in FY2021 Revenues of the Smart Life Sector as Revenues by business compared to those of the overall Hitachi in the Smart Life Sector Others Listed IT Hitachi Astemo Hitachi GLS 5% 21% Companies 987.6 456.3 billi

7. Slide 7: 1-3. Business Portfolio

   1-3. Business Portfolio 2 Promoting the Smart Life Business with semiconductors, healthcare, and home appliances at the core Semiconductor Manufacturing Healthcare Smart Life & & Inspection Equipment Eco-friendly Systems 218.6 billion yen *1 144.3 billion yen *2 456.3 billion yen • Advanced CD measu

8. Slide 8: 1-4. Progress of the 2021 Mid-term Management Plan

   1-4. Progress of the 2021 Mid-term Management Plan 1 Steadily pursuing business structural reform and operational improvements, anticipating the achievement of an EBIT ratio of 10% or more 9.7% (15.0%) Smart Life Sector *1 Targets*3 under 2021 Mid-term FY2020 FY2021 6.5% (7.1%) 6.3% (16.1%)*1 Manage

9. Slide 9: 1-5. Progress of the 2021 Mid-term Management Plan

   1-5. Progress of the 2021 Mid-term Management Plan 2 A target under the 2021 Mid-term Management Plan is to achieve an operating income ratio of 10% by Revenues accomplishing business portfolio changes and operational reforms Adjusted operating income Regarding the Automotive Systems Business, the t

10. Slide 10: 1-6. Breakdown of Changes in Revenues and Adjusted Operating Income

    1-6. Breakdown of Changes in Revenues and Adjusted Operating Income (FY2020 - FY2021) Revenues （単位：億円） (Billion yen) +191.0 + 2,240.3 +606.3 1,472.9 △29.9 +41.2 +41.3 1,000.0 △987.6 △201.0 △93.0 FY2019 Impact of Review of Impact of FY2020 Review of Impact of Downsizing of Sales FY2021 result COVID-1

11. Slide 11: 1-7. Competitive Environment: Business Positions of Mainstay Products

    1-7. Competitive Environment: Business Positions of Mainstay Products Further increasing the earnings capacity of current products and solutions Biochemistry and immunology Semiconductor measurement and Domestic home appliances*1 (2020) analyzer*2 (2020) evaluation*3 (2020) Hitachi High- Hitachi Oth

12. Slide 12: 1-8. Revenues and Fields to Strengthen by Region

    1-8. Revenues and Fields to Strengthen by Region Expanding businesses by capturing business opportunities in regions with high market growth rates North America Europe China Japan Component ratio: 14% Component ratio: 10% Component ratio: 13% Component ratio: 46% (Billion yen) 335.4 △9% 303.7 206.9

13. Slide 13: 1-9. Market Environment – External Factors Influencing Business Performance

    1-9. Market Environment – External Factors Influencing Business Performance The time whenコロナ禍の収束が、今後一番の業績影響要因 COVID-19 will end will be the most influential factor Growth (value) drivers Risk factors ⚫ Delay in the end of the COVID-19 ⚫ Acceleration of decarbonization, ESG, and SDGs pandemic caused

14. Slide 14: Contents

    Smart Life Sector Contents 1. Progress of the 2021 Mid-term Management Plan 2. Growth Strategy 3. Summary © Hitachi, Ltd. 2021. All rights reserved. 13

15. Slide 15: 2-1. Vision

    2-1. Vision Contributing to realizing smart life in the four growth fields of EV, semiconductors, healthcare, and home Reduction of CO2 resulting from the spread of EV Semiconductor inspections supporting Lower accident rate attributed to automated digital technologies and 5G driving High precision

16. Slide 16: 2-2. Accelerating Expansion of the Lumada Business

    2-2. Accelerating Expansion of the Lumada Business Expanding the solution business for growth markets of EV, semiconductors, healthcare, and home FY2021 Revenues from the Business expansion target Automated driving and EV-related environmental solutions +1.0 Lumada business billion yen ・Data managem

17. Slide 17: 2-3. GlobalLogic Inc. x Lumada

    2-3. GlobalLogic Inc. x Lumada Accelerating the Lumada business using the digital engineering capability of GlobalLogic Inc. EV business Semiconductors Healthcare Home ・SaaS for managing commercial EV ・Integrated solutions for ・SaaS for diagnostic support ・Connected home semiconductor manufacturing

18. Slide 18: 2-4. Portfolio Reform Aimed for Growth

    2-4. Portfolio Reform Aimed for Growth Reforming the portfolio into one with a high growth rate, by reforming businesses facing issues and making strategic investments in growth markets Strategic investments in growth markets of Investing 300.0 billion yen during healthcare FY2021 to FY2023 to devel

19. Slide 19: 2-5. Challenges to Enter Growth Markets

    2-5. Challenges to Enter Growth Markets Realizing precision medicine for high QoL with molecular diagnosis, immune cell therapy, and radiotherapy x digital technologies and AI Collaboration Medical integration analytics Collaboration with academia with start-ups Medical knowledge processing Federate

20. Slide 20: 2-6. Environmental Strategy

    2-6. Environmental Strategy Helping reduce environmental impact by providing Lumada environmental solutions Technologies for equipment diagnosis and operation Technologies for battery degradation diagnosis and regeneration and for supporting maintenance staff x Digital technologies and AI x Digital

21. Slide 21: 2-7. Initiatives to Accelerate Growth

    2-7. Initiatives to Accelerate Growth Accelerating changes by assigning women and external human resources as members of the management team and introducing management approach including OKR Accelerating commercialization through hackathon, Business managers ideathon, etc. Hackathon Ideathon “Digita

22. Slide 22: Contents

    Smart Life Sector Contents 1. Progress of the 2021 Mid-term Management Plan 2. Growth Strategy 3. Summary © Hitachi, Ltd. 2021. All rights reserved. 21

23. Slide 23: 3. Summary

    3. Summary Promoting the Smart Life Business, which improves people’s QoL, by applying digital technologies ･Achieve an adjusted operating income ratio 10% over in FY2022 by promoting cost structural reform by each entity ･Developing next-generation healthcare core business, by investing 300 billion

24. Slide 24: Cautionary Statement

    Cautionary Statement 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

25. Slide 25: Hitachi Social Innovation is POWERING GOOD

    Hitachi Social Innovation is POWERING GOOD

26. Slide 26: HITACHI Inspire the Next

    HITACHI Inspire the Next

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