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HITACHI Social Innovation & OSS 2018/11/15 Ryo Kawai HITACHI LTD.

Contents 1. Outline of Hitachi 2. Our Vision and OSS 1

Contents 1. Outline of Hitachi 2. Our Vision and OSS 2

Hitachi Corporate Profile Established February 1, 1920 Capital 458.7 billion yen (as of end of Mar. 2018) Hitachi, Ltd. President & CEO Toshiaki Higashihara Number of Employees Revenues 307,275 (as of end of Mar. 2018) 9,368.6 billion yen (FY2017 Consolidated) Operating Income 714.6 billion yen (FY2017 Consolidated) *Figures are on a consolidated basis 3

Consolidated Revenue by Segments Others Information & Telecommunication Systems Smart Life & Ecofriendly Systems Automotive Systems 10% 16% 5% 6% 20% Total 9,368.6 billion yen FY 2017 23% 9% 11% Social Infrastructure & Industrial Systems High Functional Materials & Components Construction Machinery Electronics Systems & Equipment 4

Global Expansion* (FY2017) Europe Revenues: 964.4 billion yen Number of companies: 139 Number of employees: 16 thousand Revenues: 1,041.0 billion yen Number of companies: 143 Number of employees: 44 thousand China Japan North America Revenues: 1,177.5 billion yen Number of companies: 100 Number of employees: 21 thousand Revenues: 4,643.0 billion yen Number of companies: 202 Number of employees: 168 thousand Asia(incl. China) Revenues: 2,081.1 billion yen Number of companies: 332 Number of employees: 88 thousand Other Areas Revenues: 502.3 billion yen Number of companies: 106 Number of employees: 12 thousand Japan Outside Japan Revenues: 4,643.0 billion yen/number of companies: 202/Number of employees: 168 thousand Revenues: 4,725.5 billion yen/number of companies: 677/Number of employees: 139 thousand Total Revenues: 9,368.6 billion yen/number of companies: 879/Number of employees: 307 thousand * Revenues: FY2017, Number of companies and employees: As of end of FY2017 5

Contents 1. Outline of Hitachi 2. Our Vision and OSS 6

An Innovation Partner for the IoT Era An Innovation Partner for the IoT Era Accelerate collaborative creation with customers and create new value through advanced Social Innovation Business Power / Energy Industry / Distribution / Water Urban Finance / Social / Healthcare 7

Lumada: A value creation platform that combines front-line knowledge Front-line knowledge Create new value from experience acquired through the Social Innovation Business OT Product IT 8

Lumada: A value creation platform that combines front-line knowledge illuminate + data OT Product IT 9

Lumada: A value creation platform that combines front-line knowledge IoT Platform Methodology and Tool for Collaborative Creation Digital Technology Big data, AI, etc. NEXPERIENCE, etc. 10

The growth of value creation for resolving issues and increased QoL create advanced service know potential need increase speed increase quality eliminate waste pass on technology and technique resolve labor shortages travel in comfort increase work efficiency work vigorously live with safety and security enjoy healthy and long life protect environment prepare for the future 11

Nishi-Nippon Railroad Co- Creation Hitachi Maintain and improve public transportation services by optimizing operation plans 12

Securing convenient public transportation: Nishi-Nippon Railroad Maintain / improve public transportation services and resolve train crew shortages by formulating operation plans based on actual demand Optimizing operation plans by analyzing statistical data on bus running records and number of passengers 13

Daikin Industries Co- Creation Hitachi Transmitting advanced skills and secure quality worldwide 14

Living in comfort with high quality products: Daikin Industries Use digital technologies to transmit advanced skills, to ensure high production quality Use digital technologies to analyze differences in skills Meister Veteran engineer Use image analysis and digital technologies to visualize advanced brazing skills for global human resource training Trainee 15

Living in comfort with high quality products: Daikin Industries Pass on advanced skills Global human resource training Manage chemical manufacturing processes Stabilize quality management and improve productivity Shiga Plant Yodogawa Plant 16

Vienna International Airport Co- Creation Hitachi Achieve a safe and secure society by improving security 17

Living in a safe, secure society: Vienna International Airport Find and detect person with appearance features Contribute to safe and secure usage of airport for passengers Speedily specify the person who left a baggage in the airport by analyzing security footage using AI 18

Living in a safe, secure society: Vienna International Airport Find and detect person with appearance features Contribute to safe and secure usage of airport for passengers Real-time image analysis using AI Able to search clothes, belongings, colors, etc. even when the face is not captured Search from images of tens of thousands of people is completed within one second 19

Office Building Optimization of Yokohama office Change data to value, and achieve office building optimization Reduce wait times by showing data on usage status of restroom stalls Control air conditions by sensor data and employee input Over 4,000 persons is gathered here, and generates IT platform products and services 20

The cycle of value creation, expanding worldwide Europe Railway solutions China Care for the elderly North America Mobility solutions Europe Security solution India Digital India Asia Industrial solutions 21

OSS: key component in the growth of Social Innovation Business Contribute and Use a large number of OSS Contribute over 20,000 line of code to Node-RED community, visual programming tool for IoT applications Line of code Use over 10,000 OSS / month to develop products, applications and systems 25,000 15,000 12,000 9,000 6,000 3,000 0 Hitachi started contribution Other IBM Hitachi 20,000 15,000 10,000 5,000 0 Line of codes in Node-RED repository 22

OSS: key component in the growth of Social Innovation Business Contribution as Project Leads/ Development Leads in Linux Foundation Project Project Purpose Leader Contribution Technology Contribution Civil Infrastructure Platform Hyperledger OpenChain Automotive Grade Linux Long Time Support for Social Infrastructure Enterprise Blockchain Supply Chain Management OSS for Automotive Community contribution/japan Local Founder / Board Member (Support Strategy) Premier Member / Board (Project Strategy) Platinum Member / Board (Strategy and Japan WG) Technical Strategy Lead Local Promotion and Japan PoC WG Lead Car Navigation EG Lead Project Project Purpose Hitachi s Contribution PostgreSQL Enterprise Consortium Enterprise PostgreSQL Official Member LPI-Japan OSS Certification Board Japan OSS promotion Forum Promote OSS in Japan Board and WG Lead Secure OSS SIG Promote Security OSS in Japan Founder/Board 23

Hitachi s vision of a promising society is one that resolves social issues and improves people s QoL simultaneously The key to achieving a promising society is through Digital technologies and Collaborative Creation As an Innovation Partner for the IoT Era, Hitachi will further expand Collaborative Creation with customers using Lumada, with a view toward the future of society 24

Trademarks Linux is the registered trademark of Linux Torvalds in the U.S. and other countries. Node-RED is a registered trademark The JS Foundation in the United States and/or other countries. PostgreSQL is a registered trademark of the PostgreSQL Community Association of Canada. Hyperledger and Hyperledger Fabric are registered trademarks of The Linux Foundation in the United States and/or other countries. OpenChain is a registered trademark of The Linux Foundation in the United States and/or other countries. HITACHI is a registered trademark of Hitachi, Ltd. Other brand names and product names used in this material are trademarks, registered trademarks, or trade names of their respective holders. 25