Hitachi to Strengthen Business Structure to Accelerate Growth through Digital, Green, and Innovation

TOKYO, Feb 2, 2023 - (JCN Newswire) - Hitachi, Ltd. (TSE:6501) today announced that as part of efforts to achieve the goals of the Mid-term Management Plan 2024, it will strengthen the business structure, effective April 1, 2023, in order to accelerate the growth of the Social Innovation Business, with a focus on digital, green, and innovation.

1. Strengthening the Digital Business Structure

To accelerate the digital transformation for both customers and the Hitachi Group, Hitachi will establish the Digital Engineering Business Unit (BU) by integrating consulting, design, and digital engineering capabilities worldwide, including GlobalLogic Inc. Jun Taniguchi, the CEO of Hitachi Digital LLC, will hold a concurrent position as CEO of the BU, and it will resolve issues for customers and society and create new value by accelerating Lumada's cycle of value co-creation along with the Hitachi Group's various business divisions, further expanding the Social Innovation Business. Shashank Samant, Chairman of GlobalLogic, and Gajen Kandiah, CEO of Hitachi Vantara LLC, will hold respective concurrent positions as Executive Chairman and President of Hitachi Digital, which leads digital strategies for the entire Hitachi Group. With the addition of these two leaders to CEO Taniguchi, Hitachi Digital will accelerate the growth of the digital businesses worldwide. The Services & Platforms BU will also be reorganized to form the Cloud Services Platforms BU. In the rapidly growing cloud business field, this BU will further strengthen data management and storage solutions, which are Hitachi Vantara's strengths, and will strive to strengthen the competitiveness of the global cloud service and data management businesses, by leveraging expertise in mission-critical systems and IT platforms.

2. Expanding Green Business

Chief Sustainability Officer Lorena Dellagiovanna will be appointed Senior Vice President and Executive Officer to further accelerate sustainability for the Hitachi Group as a whole. Vice President and Executive Officer Tadashi Kume(1) will be appointed Executive General Manager of Global Environment Business Group, which will lead the green business, while Ayumu Morita will be appointed General Manager. Megumu Tsuda will be appointed General Manager of Internal Environment Initiatives Division, which will lead environmental activities within the Hitachi Group. Under leadership of Chief Sustainability Officer, they will contribute to promoting green strategies both inside and outside of the Hitachi Group.

In the Railway Systems Business, Giuseppe Marino(2), who drove the PMI following Hitachi's acquisition of AnsaldoBreda S.p.A. & Ansaldo STS S.p.A. will be appointed CEO of the Railway Systems BU and will strive to make Hitachi a top global player in the railway systems business by acquiring Thales' Ground Transportation Systems Business and promoting PMI. Andrew Barr, currently CEO of the BU, will be appointed Executive Officer in charge of Regional Strategies [EMEA] and President of Hitachi Europe Ltd., leading the regional strategies in EMEA including the green business. Meanwhile, Executive Vice President and Executive Officer Alistair Dormer will lead the Green Energy & Mobility Sector, which is at the core of the green business, further
expanding Hitachi's contributions to the environment through business on a global scale.

3. Accelerating the Creation and Promotion of Innovations

Itaru Nishizawa will be appointed CTO, and General Manager of Research & Development Group, working alongside Masakatsu Mori, who will be appointed General Manager of Innovation Growth Strategy Division in leading the creation of innovations. Both have an extensive track record of research in the digital field, and will play a central role in supporting the future growth of the Hitachi Group by applying Web 3.0, the metaverse, and other cutting- edge technologies in the Lumada business and creating innovations in fields such as quantum computing, design cell, and hydrogen by backcasting from 2050.

Business Structure as of April 1, 2023

BU: Business Unit EVP: Executive Vice President SVP: Senior Vice President VP: Vice President
Hitachi sees Diversity, Equity and Inclusion (DEI) as sources of innovation and engines that drive global growth. It assigns diverse talents to positions where they are able to make use of their unique knowledge and experiences, and to fully demonstrate their capabilities. With Lorena Dellagiovanna and Giuseppe Marino being appointed Senior Vice President and Executive Officer, and Chie Mashima being appointed Vice President and Executive Officer, as of April 2023, there will be a total of six female and non-Japanese executive officers, a record number for Hitachi. By actively appointing diverse talent, Hitachi will strive for further growth on a global scale.

(1) Will be appointed Chief Quality Officer & Chief Manufacturing Strategy Officer
(2) Currently serves as CEO of Ansaldo Energia S.p.A., outside of the Hitachi Group

About Hitachi, Ltd.

Hitachi drives Social Innovation Business, creating a sustainable society with data and technology. We will solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products, under the business structure of Digital Systems & Services, Green Energy & Mobility, Connective Industries and Automotive Systems. Driven by green, digital, and innovation, we aim for growth through collaboration with our customers. The company's consolidated revenues for fiscal year 2021 (ended March 31, 2022) totaled 10,264.6 billion yen ($84,136 million USD), with 853 consolidated subsidiaries and approximately 370,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.

Source: Hitachi, Ltd.

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