Integrated Report 2026

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

01 Editorial Policy

Who We Are Hitachi’s Value Creation Cycle CEO Message Key Financial Indicators Executive Officers Lumada—Hitachi’s Growth Model HMAX—Recurring Digital Services Hitachi’s Corporate Value Enhancement Formula / Contents Aiming to be the global leader in continuously transforming social infrastructure through digital

Four Core Business Strategies

of Growth

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Digital Systems & Services Transform social infrastructure through the integration of digital and OT

Solutions, services and technologies powered by Hitachi’s advanced digital technologies that create value from customers’ data and accelerate digital innovation.

Who We Are

MISSION

Corporate Philosophy

VALUES

Hitachi Founding Spirit

VISION

Hitachi Group Vision

Contribute to society through the development of superior, original technology and products.

Harmony, Sincerity, Pioneering Spirit

We transform social infrastructure through digital technology, building a future where environmental sustainability, human wellbeing and economic growth advance together.

Founder Namihei Odaira History

Hitachi Group Identity

Digital and AI Technologies

Backed by more than

80 years of experience in the IT business

OT (Operational Technology)

Built on on-site expertise across more than

190 countries and regions

Products

Built on more than

110 years of experience in building social infrastructure

Founded in

Unique capabilities

1910

Number of employees

Approx.290,000

Aiming to be the global leader in continuously transforming social infrastructure through digital

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report

Management Plan (April 2026)

Who We Are

of Growth

Governance

Financial Strategy and Risk Management

Hitachi’s Value Creation Cycle CEO Message Key Financial Indicators Executive Officers Lumada—Hitachi’s Growth Model HMAX—Recurring Digital Services Hitachi’s Corporate Value Enhancement Formula / Contents Aiming to be the global leader in continuously transforming social infrastructure through digital

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Hitachi’s Value Creation Cycle

Hitachi aims to achieve sustainable increases in corporate value while contributing to the realization of a Harmonized Society. Centering its management on “Lumada,” we will continue strengthening the portfolio by capturing trends in society, starting with evolving governance, while creating new value through innovation in technologies and business models. Through balanced capital allocation, we will further accelerate value creation. Through this cycle, we will achieve sustainable increases in corporate value while creating environmental, social and economic value.

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

Financial Strategy and Risk Management

03 Hitachi’s Value Creation Cycle

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Who We Are

Four Core Business Strategies

Innovation for the Next Stage of Growth

Financial Strategy and

Risk Management 23 CFO and CRMO Message

13 Energy 17 Connective Industries 15 Mobility 19 Digital Systems & Services

28 Sustainability Strategy PLEDGES

29 Human Capital Strategy

Past Mid-term Management Plans 10-Year Financial Data 5-Year ESG Data Corporate Data and Stock Information

Data

Hitachi’s Corporate Value Enhancement Formula

The Corporate Value Enhancement Formula organizes Hitachi’s value creation cycle from an economic value perspective into three elements: maximizing value creation, enhancing growth and reducing the cost of capital. This page illustrates how each section of this report relates to these three elements.

By continuously strengthening our portfolio in response to trends in society, together with steady growth in our four core business sectors and ROICfocused management, we will accelerate profit and cash generation and maximize value

creation.

Reinvesting in Growth

Strengthening the Portfolio

Evolving Governance We will accelerate research and development toward innovations that drive the next stage of growth while executing strategic investments that foster new challenges to achieve sustainable growth.

Through disciplined financial strategies, advanced risk management and highly effective governance, we will reduce the cost of capital.

Maximizing Value Creation (Profit, Cash Flow and ROIC)

Reducing the Cost of Capital

Enhancing Growth

PLEDGES Sustainability Strategy

Lumada Hitachi’s Growth Model for Creating Value from Both the Physical and Digital Worlds

Chairman of the Board’s Message (P. 31)

Corporate Governance (P. 33)

Research & Development

Strategy (P. 21)

Lumada—Hitachi’s Growth

Model (P. 11)

CHRO and CSuO Message

(P. 27)

CEO Message (P. 05)

Energy (P. 13) Mobility (P. 15)

Connective Industries (P. 17) Digital Systems & Services

(P. 19)

Four Core Business Strategies

Shareholder Returns

Innovating Technologies and Business Models

Enhancing Corporate Value

Maximizing Value Creation (Profit, Cash Flow and ROIC)

Reducing the Cost of Capital Enhancing Growth

HITACHI INTEGRATED REPORT 2026

Progress of Inspire 2027, the Hitachi Group’s Management Plan (April 2026)

Corporate Governance Report

Annual Securities Report

This integrated report uses the following symbols to provide functions for use in navigating the report or accessing external resources.

Click to access external website Click to move to corresponding page Click to move to table of contents

Explanation of Guidance Functions

CEO Message

“What kind of company is Hitachi?” This was a question raised by one of our shareholders.

Hitachi has continued to transform to grow sustainably. We are a very different company today than we once were. This question captures what many stakeholders want to understand: where we stand today and where we are going.

With this in mind, I would like to reaffirm what kind of company Hitachi is, the value we bring to society, and how we will enhance our corporate value.

Since our founding in 1910, Hitachi has consistently built and supported social infrastructure, guided by our mission: “to contribute to society through the development of superior, original technology and products.” For 116 years, we have delivered highly reliable, high-quality products, cultivating infrastructure control and operational technology (OT) on the ground in 190 countries and regions. And for 80 years in IT, we have built advanced digital technologies and the expertise to apply them. Very few companies possess strengths in IT, OT and products on a global scale.

Today, demand for sustainable social infrastructure is rising around the world. AI is expected to play a critical role in making operations more advanced and efficient. 2026 marks the dawn of physical AI. Physical AI directly controls real-world equipment and systems, where a single malfunction can cause not only equipment shutdowns and quality issues, but also disruption to economic activity and risks to human life. Deploying this technology in society is inherently complex and carries significant risks.

These characteristics of physical AI create a significant growth opportunity for Hitachi. In the AI era, competitive advantage comes not from the AI alone, but from the front-line operational data and domain expertise. As a Digital Infrastructure Company, we integrate the IT, OT and product technologies and expertise accumulated across our Energy, Mobility, Industry and Digital domains as One Company, fully leveraging on-site data. This is how we create distinct value as a “practitioner of physical AI” and expand our contribution to solving social challenges.

Our vision is to realize a Harmonized Society—a world where the environment, well-being and economic growth coexist in harmony. Hitachi will lead this new challenge for humanity: safely deploying physical AI across social infrastructure to build a sustainable society.

We have long worked to solve social challenges and enhance corporate value in pursuit of our goal of becoming a “global leader in the Social Innovation Business.” Now, in the AI era, Hitachi has the opportunity to evolve even further.

My answer to the question at the beginning is this: Hitachi will pursue sustainable growth toward our goal of becoming the world-leading Digital Infrastructure Company and contributing to the realization of a Harmonized Society.

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

Four Core Business Strategies 12 HMAX—Recurring Digital Services

of Growth

Sustainability Strategy 23 CFO and CRMO Message

Governance

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model

05 CEO Message Formula / Contents

09 Key Financial Indicators 10 Executive Officers

13 Energy

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Value creation model evolving with AI

Hitachi’s approach to value creation is to deliver services that help ensure stable operations at customer sites while driving innovation by leveraging the data generated by its extensive installed base world-wide.

Hitachi’s energy business, for example, has a global installed base worth 240 billion dollars. In Japan, 15,000 IT systems developed by Hitachi are in operation across financial institutions and public-sector organizations. These systems, so-called “digitalized assets,” generate vast amounts of data every day. We combine that data with our operational expertise and AI technologies, delivering the resulting insights as “digital services” that create new value.

A key feature of this approach is that the data and domain knowledge we accumulate and refine through these operations continually improve our AI, which in turn increases the value of our services. Through this virtuous cycle, the value we create compounds over time.

Lumada embodies this value creation approach. Since its launch in 2016, it has helped numerous customers solve challenges and drive digital transformation. We have placed Lumada at the core of our management strategy. Toward 2030, we have set out “Lumada 80-20:” a Lumada revenue ratio of 80% and an adjusted EBITA margin of 20%.

Our growth strategy toward this vision is delivering results. Fiscal 2025 was the first year of our Inspire 2027 management plan. Despite a volatile macroeconomic and geopolitical environment, we delivered strong performance. Adjusted EBITA, net income, core free cash flow and ROIC all reached record highs. Our order backlog also reached 21 trillion yen, the largest in our history.

Lumada helped drive this growth, reaching 40% of revenue and a 16% adjusted EBITA margin.

HMAX, our AI-powered, recurring Digital Service, is now gaining real momentum. HMAX started in the Mobility sector in 2024. There, we used Hitachi’s domain knowledge and AI to analyze on-site data from trains and signaling systems. This helped reduce energy consumption and improve operations and services across railway infrastructure. In fiscal 2025, we launched two more services. HMAX Industry helps sustain building value and improve production efficiency. HMAX Energy supports safety, reliability, and sustainability across the energy value chain. Together, these have driven Hitachi Group’s HMAX revenue to 300 billion yen, with a 22% adjusted EBITA margin. HMAX creates value across the entire life cycle of social infrastructure—a clear example of our “compounding value creation model.”

Alongside HMAX’s expansion, we’re relentlessly reshaping our business portfolio. We continuously review each business through the lens of our value creation model and capital efficiency, taking decisive action. These efforts will accelerate our progress toward Lumada 80-20.

Evolution toward Hitachi’s vision

Inspire 2027 Beyond

Lumada 80-20 Increase corporate value

HMAX

Digital Service

Digitalized Asset Social infrastructure

Contributing to the realization of a Harmonized Society

(Non-Lumada)

Hitachi’s growth domain, Digital Infrastructure

Digital Energy

Digital Mobility

Digital Industries

Digital Transformation HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

of Growth

Governance

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Creating further growth opportunities with customers and partners

Through dialogue with customers and partners world-wide, Hitachi’s value creation approach keeps expanding into a broader range of industries and social issues.

For example, we started working with a global manufacturer to improve productivity using Hitachi’s proprietary sensing technology and AI to visualize and optimize their entire production process, including equipment from other vendors. That dialogue has since grown to cover a wider range of topics, from optimizing power usage on the factory floor to edge AI applications. We’re now exploring new collaborations that draw on Hitachi’s broad expertise and strengths to create new value.

In May 2026, we held Hitachi Physical AI Day, attended by more than 1,600 customers, partners, media and investors. Our four sectors, as well as our corporate and R&D functions, united as One Hitachi. Through exhibits and sessions, we showcased concrete scenarios for solving societal issues with physical AI. Our discussions with customers across a wide range of industries have since accelerated.

We’re building an AI ecosystem with partners to capture the growth opportunities brought by AI. In conversations with CEOs of frontier AI companies, I have seen strong interest in the on-site data from Hitachi’s installed base, and in the domain knowledge we’ve built up over generations. Combined with our partners’ AI technologies, these strengths are driving new AI solutions and a growing use of agentic AI. These developments are expanding our digital services.

This is just the beginning of how AI will expand Hitachi’s growth story. We’ll keep accelerating value creation together with a wide range of customers and partners.

Constructive dialogue with capital markets

Since taking on the role of CEO, I have spoken with many investors about Hitachi’s value creation model and growth strategy. These conversations have covered our distinctive approach to mediumand long-term growth as a social infrastructure business. We have also discussed Hitachi’s competitive advantage in the AI era. As CEO, I feel every day that dialogue with capital markets is one of the most critical parts of my job.

Nearly every investor I met in 2026 asked me the same question: “Could advances in AI pose a threat to Hitachi?” My answer is clear: advances in AI are not threats to Hitachi. Rather, they represent the greatest growth opportunity we have ever had.

AI can replace some traditional IT services. At the same time, new demand is growing for the modernization of customers’ vast IT assets to make them AI-ready, as well as for AI transformation. We expect AI-related revenue in the Digital Systems & Services sector to reach a compound annual growth rate (CAGR) of 20–25% from fiscal 2025 to fiscal 2027. We’re also deploying AI across social infrastructure, especially physical AI: we anticipate HMAX revenue will grow at a CAGR of 50–60% over the same period. Our continuously expanding backlog will steadily convert into digitalized assets over time, underpinning HMAX’s medium- to long-term expansion.

New value creation in our social infrastructure business often takes longer to monetize. Therefore, we have a responsibility to show our growth process—even before it shows up as financial value—so that investors can track our progress.

With this discipline, we will continue to increase the transparency of our disclosures. We will expand our disclosure of quantitative data beyond leading indicators of demand, such as orders and backlog, to give greater visibility into the growth of recurring services led by HMAX. Our business leaders will also engage directly with the capital markets, sharing their firsthand perspectives on where we currently stand in our growth journey.

We will continue to strengthen our dialogue with capital markets and demonstrate the progress and results of our value creation with greater transparency. Through this, we will remain committed to sustainably enhancing our corporate value.

Evolving our management for sustainable growth—pursuing speed and quality

Our management itself must continuously evolve to sustainably enhance corporate value.

Hitachi today faces two simultaneous waves of change: short-term shifts and medium- to long-term trends. One wave is immediate: AI technology continues to evolve at a rapid pace, and the geopolitical landscape remains highly unpredictable. The other runs deeper: megatrends such as aging infrastructure, a declining workforce and the energy transition will continue to unfold over time.

We view these changes as both risks and opportunities, turning them into a driver of growth. That said, competition for these growth opportunities will also intensify. We draw our strongest competitive advantage from the on-site data our installed base generates and the domain knowledge we have built up over generations. What matters most is speed: how fast we turn that advantage into value.

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

of Growth

Governance

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

In solution development, we use our Customer Zero approach—leveraging Hitachi’s own diverse business sites as a testbed to deliver value to customers faster. We are placing particular focus on strengthening our Physical AI FDE team* to further accelerate solution deployment. This FDE team combines deep expertise in both social infrastructure operations and cutting-edge AI. The team will deploy scalable digital services including HMAX.

*Forward Deployed Engineer (FDE) team: A specialist team equipped with FDE capabilities that works directly at customer sites and uses AI and other technologies to provide end-to-end support, from problem definition through implementation, operation and continuous improvement.

We are also evolving how we manage the Company. I set up the Global Strategy Committee shortly after becoming CEO. It brings together all executive officers to discuss critical growth strategies with a strong sense of ownership, accelerating decision-making and execution as One Company. We are also transforming our corporate culture. Rather than being satisfied with year-over-year improvements or the achievement of budget targets, we keep pushing for higher targets, always benchmarked against market consensus and global peers.

At the same time, disciplined management, or “quality,” matters just as much. We will adhere to the capital allocation policy presented at Hitachi Investor Day 2026, allocating the cash we generate in a balanced way between growth investments and shareholder returns. For growth investments, our hurdle rates are the adjusted EBITA margin and the ROIC targeted under Inspire 2027. We will prioritize opportunities that offer a clear path to sustained ROIC improvement and spread expansion, pursuing them boldly and decisively. We will also grow shareholder returns through stable dividend increases aligned with business expansion and flexible share buybacks.

Strong performance is exactly when we must guard most against complacency. That is why it is even more important that we return to our core management principles. Hitachi captures this ethos in two phrases: “Basics and Ethics” and “Putting Right and Wrong Before Profit and Loss.” These phrases capture a core principle of Hitachi’s management—doing what is right without being tempted by short-term gain. We will tolerate no laxity in compliance or risk management, and will maintain rigorous management discipline to achieve sustainable growth that combines both speed and quality.

Deepening governance to support sustainable growth

Deepening corporate governance is fundamental to Hitachi’s sustainable growth. Management and the Board hold constructive, substantive discussions regularly to enhance corporate value. For example, as we track progress under Inspire 2027, we continue to discuss whether HMAX can become a “true driver” of growth across Hitachi as a whole, not merely one solution among many, based on the business’s actual performance and future potential.

As risk management becomes increasingly important, we are working to share the top risks identified by our executive team with the Board of Directors on a timely basis, drawing on its diverse global perspectives and expertise. We are also incorporating the Board’s advice into our management decisions.

We’re continuously working to strengthen oversight by enhancing the diversity, expertise, and independence of the Board of Directors. The Board welcomed two new Independent Directors in fiscal 2025, and a further two in fiscal 2026, expanding its global management expertise.

To translate deeper governance into real behavioral change across the organization, we are building mechanisms that align shareholder value more closely with employee mindsets and actions.

Specifically, we have significantly expanded our stock-based compensation plan beyond directors and executive officers to include 1,800 leaders driving our businesses and organizations. We believe that when leaders world-wide share our shareholders’ perspective and act to enhance corporate value, this will provide powerful impetus for the execution of Hitachi’s strategy.

Beyond the value creation we have discussed so far lies a Harmonized Society.

The infrastructure supporting this society takes the form of a System of Systems—diverse systems and operations, tightly interconnected. We must integrate them safely and efficiently, a task that will become increasingly critical to realizing a Harmonized Society.

The value Hitachi provides in such a society can be likened to an “operating system (OS) for social infrastructure.” An OS is an essential platform for any system. A familiar example is your smartphone’s operating system—it connects the hardware to a wide range of applications, and regular updates let you enjoy new features while the hardware itself stays the same.

The same holds true for social infrastructure. Technological advances and a shrinking labor force are reshaping how it operates. But social infrastructure cannot easily be replaced. That is why Hitachi draws on its existing assets to deliver innovative digital services. These services make infrastructure operations more efficient and more advanced, while strengthening its long-term sustainability.

We are also looking beyond the deployment of AI in social infrastructure. The widespread adoption of AI is giving rise to new challenges, including a sharp increase in the scale and complexity of computing, along with surging power consumption from processing vast amounts of data. To solve these future challenges, Hitachi is using a backcasting approach to develop and deploy advanced technologies—including quantum computing, edge AI semiconductors, an 800V DC power architecture for data centers and space big data. Staying ahead of societal challenges and solving them through superior technology and innovation to benefit society—this has been Hitachi’s unchanged purpose since our founding, and the true origin of our value creation.

Toward our goal of becoming the world-leading Digital Infrastructure Company, Hitachi will continue to digitally transform social infrastructure and contribute to the realization of a Harmonized Society. We will continue solving social challenges and enhancing corporate value, working with all our stakeholders, beginning with our shareholders and investors, to shape the next chapter of value creation.

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Key Financial Indicators

Revenues Net income attributable to Hitachi, Ltd. stockholders Adj. EBITA margin

Core free cash flow

Financial Performance Trends Inspire 2027 Targets

1,311.4 billion yen

12.4%

35% Digital Systems & Services

Connective Industries 25%

Adj. EBITA margin

2% Others

FY2025 Results

*The decrease in revenues for FY2023 includes the impact of business portfolio restructuring (Hitachi Construction Machinery, Hitachi Metals and Hitachi Astemo). *Adj. EBITA margin: The old definition applies to FY2022 and FY2023, while the new definition applies to FY2024 and FY2025. For details of the old and new definitions, see p. 41.

10,586.7 billion yen

27% Digital Systems & Services

Connective Industries 27%

5% Others

Revenues by business segment*9

63% Overseas 37% Japan

9% China

Asia (Excluding Japan, China and the Middle East) 8%

Other Regions*8

Revenues by region Adj. EBITA by business segment*9

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Executive Officers*

Vice Presidents and Executive Officers

Legend: Name / Country of birth / Responsibility

*Executive Officers are listed by position and in Japanese alphabetical order within each grouping. The double circle (◎) denotes executive officers who are representative executive officers.

Atsuhiro Aketa Marketing & sales strategies (business for energy)

Hidenori Azushima Digital Systems & Services business (corporate strategies)

Yasunori Inada Nuclear Energy business

Yasuki Imai Digital Services business Tadashi Kume Supply chain management (manufacturing strategy and quality assurance) and safety and health management

Takashi Saito Marketing & sales strategies (business for connective industries)

Shigetoshi Sameshima Research & development

Yoshimitsu Takagi Industrial Solutions business Susumu Takimoto Human capital strategies, crisis management strategies, safety and health management

Yasuhiro Takeuchi Regional strategies (Americas)

Takahiro Tsukishima Corporate strategies

Megumu Tsuda Environmental strategies, sustainability strategies

Kojin Nakakita Regional strategies (APAC) Hideshi Nakatsu

Industrial Products business Masashi Hatakeyama Finance strategies, corporate pension system

Hirohide Hirai

Government & external relations

Satoko Fujimori Information security management and information technology strategies

Alice Po Value integration Yoshinori Hosoya

AI & Software Services business

Kosuke Horiuchi

Regional strategies (India) Chie Mashima Marketing & sales strategies; Regional strategies (Japan)

Yuto Matsumura ◎ Legal matters, corporate export regulation, compliance strategies, intellectual property strategies and corporate auditing

Yoshimaro Yusuki Regional strategies (China)

Takashi Yoda Business management promotion

President & CEO Senior Vice Presidents Executive Vice President and Executive Officer

and Executive Officers

Japan General

Executive Officer

Toshiaki Higashihara ◎

Japan Marketing & sales strategies, regional strategies overall management, corporate strategies overall management, government & external relations and corporate communications strategies, business management promotion Mobility business Italy

Masahiko Hasegawa ◎ Katsuya Nagano Giuseppe Marino

Japan Assistant to the Executive Vice President (Digital Systems & Services (Japan)) Digital Services business

Italy

Human capital strategies, crisis management strategies, safety and health management, diversity, opportunity and inclusion strategies, environmental strategies, sustainability strategies, value integration strategies

Lorena Dellagiovanna

Japan Overall management

Toshiaki Tokunaga ◎

Japan Strategic Social Innovation business

Jun Taniguchi

Japan Connective Industries business

Noriharu Amiya

Japan Finance strategies, corporate pension system, risk management, investment strategies, investor relations strategies Japan Schierenbeck

Tomomi Kato ◎

Germany Energy business

Andreas

Assistant to the President (Digital Systems & Services business; digital strategies) Digital Systems & Services business

Jun Abe ◎

Biographical Details

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

of Growth

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

HMAX

Customer’s broader asset portfolio

What is HMAX?

1 Leverage data from digitally connected assets 2 Utilize AI enhanced by domain knowledge 3 Deliver continuous recurring services

Digital Services Highly reliable, data-driven and innovative solutions Lumada 3.0*

Domain Knowledge ×

Digitalized Assets Data-generating, strong products and systems

Hitachi’s Installed Base

Digital

Lumada Business

TAM

Products and systems supporting social infrastructure for 110+ years

HMAX Recurring digital services

HMAX drives the scale of digital services,

continuously enhances asset value

Lumada—Hitachi’s Growth Model

Hitachi’s source of competitive advantage lies in its ability to create value from both the physical and digital worlds by integrating the domain knowledge it has cultivated across a broad range of businesses since its founding with operational technology (OT) and advanced digital technologies.

Building on this strength, we have spent the past decade advancing Lumada, which creates value from data and accelerates digital innovation. Within Lumada, HMAX™ by Hitachi (HMAX) comprises a portfolio of next-generation solutions that leverage AI enhanced by Hitachi’s unique domain knowledge to transform social infrastructure. Through delivering HMAX, we address the most complex challenges facing social infrastructure and delivers the greatest outcomes and value to customers and society.

Lumada

・Expand high-margin digital services businesses ・Improve ROIC through the application of services to

third-party assets

・Achieve sustainable growth by transforming social infrastructure by continuously accumulating data and through ever-evolving

cutting-edge technologies

・Increase digital services and recurring revenue

Maximizing Value Creation

Enhancing Growth Reducing the Cost of Capital

Enhancing Corporate

Value Reducing the Cost of Capital

Maximizing Value Creation (Profit, Cash Flow and ROIC)

Enhancing Growth

Features of Lumada

Lumada contributes to all elements of Hitachi’s Corporate Value Enhancement Formula. ( P.04)

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Energy (P. 13) Mobility (P. 15) Connective Industries (P. 17)

HMAX—Recurring Digital Services

By leveraging vast amounts of data generated from both physical and digital assets and enhancing advanced AI with Hitachi’s unique and deep domain knowledge, HMAX addresses the most complex challenges facing social infrastructure and delivers the greatest outcomes and value to customers and society.

HMAX by Hitachi

A portfolio of next-generation solutions that transform social infrastructure with AI.

HMAX Energy HMAX Mobility HMAX Industry

The suite of digitally-enabled services for critical energy infrastructure offers the optimization of asset life cycles through data-driven insights, the early prediction of issues through asset monitoring as well as proactive maintenance to reduce risk and extend asset life, enabling the increase in operational efficiency and grid reliability.

Up to 60% reduction

in revenue loss from equipment downtime Up to 15% reduction

in maintenance costs

16% reduction in energy consumption, 3% improvement in facility management costs by optimizing equipment operations and facility management

Safeguarding power infrastructure by reducing equipment failures, extending asset lifetime and optimizing operations

Optimizing replacement timing for parts, maintenance workforce allocation, cost reduction and workforce transformation

Realizing time to market, productivity improvement & quality assurance, energy efficiency improvement, zero downtime

A comprehensive suite of intelligent transportation systems (ITS) covering public transit, including fleet management, automated vehicle diagnostics, passenger information systems and EV* management. By integrating these capabilities into the HMAX Mobility digital asset management platform and building an operational digital twin, HMAX Mobility leverages AI and edge computing to maximize asset performance and optimize costs. *EV: Electric Vehicle (e.g., electric buses and other electric vehicles)

We offer a wide range of solutions for the industrial area including buildings and factories to advance safety, productivity, quality and environmental sustainability. By leveraging physical AI, which integrates high-precision data from our highly reliable products and measurement equipment with our deep domain knowledge, we autonomously optimize onsite operations. Through these solutions, we contribute to maximizing customer value and driving global industrial

transformation.

Domain Knowledge

●Global leader in electrification—pioneering HVDC, transformers, switchgear, power electronics, automation, software and services

●World’s largest installed base of transmission and distribution equipment with over 500,000 assets

Domain Knowledge

●Rolling stock manufacturing and maintenance ●Signaling system manufacturing and maintenance ●Traffic management systems

Domain Knowledge

●Manufacturing, operation and maintenance of highly reliable products supporting a wide range of industries

●Tacit and explicit knowledge rooted in industrial operations

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

of Growth

Governance

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Investor Day (Energy Business Strategy)

Enhancing Corporate Value

Maximizing Value Creation Reducing the Cost of Capital Enhancing Growth

Business environment

Electricity’s share of total global energy consumption continues to rise and is projected to reach 25% by 2030 and more than 40% by 2050. Between 2015 and 2025, global investment in electricity increased significantly: investment in renewables doubled, investment in transmission and distribution grids and storage increased 1.4 times, investment in electrification increased 2.4 times, and investment in nuclear energy increased 1.7 times while investment in fossil fuels decreased. In this environment, the power grid market is projected to grow from approximately 270 billion dollars in 2025 to approximately 450 billion dollars in 2035, driven by electrification, demand growth and renewables transition*1 . The nuclear power market is also expected to expand, supported by growth in the SMR*2 market alongside conventional large reactors, reaching approximately 130 billion dollars in 2050*3.

Progress of Inspire 2027

In fiscal 2025, the Energy sector achieved record-high performance, with revenues of 3,219.9 billion yen and an adjusted EBITA margin of 12.9%. ROIC also improved by 6.9 points year on year to 15.4%. Even as we continued to invest aggressively, with capital expenditures up 92% and R&D expenses up 22% year on year, we enhanced capital efficiency while achieving a substantial increase in profitability. Following the strong fiscal 2025 performance and with continued market growth, the Energy sector updated its Inspire 2027 targets. We aim to deliver a revenue CAGR*4 of 15%–17%*5, an adjusted EBITA margin of 14%+, and ROIC of 20%+ by fiscal 2027. As our long-term targets, we have set a revenue CAGR of approximately 14%*6 through fiscal 2030, an adjusted EBITA margin of 16%+, and ROIC of 25%+ in fiscal 2030. To achieve these targets, we will continue to capitalize on the energy transition and leverage AI and digitalization, including Lumada and HMAX, across the sector. In the Power Grids business, we will continue our focus on solid execution and capacity expansion to deliver our record backlog as well as cementing our market leadership through innovative technologies. In the Nuclear Energy business, we will focus on priority initiatives for further growth and transformation, including supporting the restart of domestic BWRs*7 , the resumption of new plant construction, contributing to the revitalization of Fukushima, and pursuing market opportunities through the expansion of SMR business via our joint venture with GE Vernova.

*1 2025 Hitachi Energy market assessment. Unconsolidated figures in FY2025 Budget rate billion USD *2 Small Modular Reactor *3 Sourced from International Atomic Energy Agency (IAEA) and International Energy Agency (IEA) *4 Compound Annual Growth Rate

Business structure

・ Transformers
・ High-voltage products and switchgear
・ HVDC (High-voltage direct current)
・ Grid & power quality solutions
・ Service
・ Automation systems and protection
・ Enterprise and asset management software

Nuclear Energy

・Nuclear power plant ・Decommissioning ・Nuclear fuel cycle

Business performance/Inspire 2027 targets

HITACHI INTEGRATED REPORT 2026

Contents

Editorial Policy Who We Are Hitachi’s Value Creation Cycle CEO Message Key Financial Indicators Executive Officers Lumada—Hitachi’s Growth Model HMAX—Recurring Digital Services Hitachi’s Corporate Value Enhancement Formula / Contents Aiming to be the global leader in continuously transforming social infrastructure through digital

Four Core Business Strategies

of Growth

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Solid execution of order backlog and investment for growth Power Grids

Hitachi Energy’s order backlog, which underpins our growth, reached a record high of approximately 60 billion dollars at the end of fiscal 2025 and is expected to reach approximately 100 billion dollars by fiscal 2030. The order backlog currently represents approximately 3 times annual revenues and is expected to remain at 2.5 to 3 times revenues going forward. To deliver on our commitments to customers, continued solid execution of order backlog is critical. To support this effort, we are advancing over 9 billion dollars in investments*8, one of the largest investment programs in the industry. We maintain strict investment discipline by committing capital only to bankable business cases and are currently investing in more than 40 projects globally.

Expanding the service business through digital capabilities

Power Grids

The digitally enabled service business is a significant growth opportunity. In April 2025, we established a dedicated Service BU with clear growth priorities. In October 2025, we completed our first inorganic investment in Shermco, in partnership with Blackstone, and are jointly developing capabilities to serve hyperscalers building next-generation AI factories. In March 2026, we launched HMAX Energy, a portfolio of digitally enabled services for critical energy infrastructure, accelerating service business expansion. We aim to grow our service business with a CAGR of 15%–20%*9 by fiscal 2030 driven by organic and inorganic initiatives. We plan to expand service revenues from approximately 15% to more than 30% of total revenue by fiscal 2035.

Capturing demand in high-growth segments ―Data centers Power Grids

Driven by the rapid expansion of AI-related demand, orders from data centers increased by more than 150% year over year in fiscal 2025. Hitachi Energy provides a broad range of products and solutions, from critical components such as high-voltage switchgear, transformers, and power electronics to support throughout the planning, construction and operation phases of data centers. Leveraging the advantages of our broad portfolio, fast delivery times, standardization, global footprint and capacity expansions, we aim to increase orders from data centers fivefold by fiscal 2027 compared with fiscal 2024.

Capturing demand in high-growth segments ―Nuclear energy and SMRs Nuclear Energy

Hitachi supports two-thirds of BWR plants in Japan and has been involved in the construction of all ABWR (Gen III+)*10 plants. As part of our digitalization initiatives, we are accelerating efforts such as AI-enabled design and licensing support and the Metaverse Platform for Nuclear Power Plants, which combines metaverse and AI technologies. These initiatives support improvements in nuclear power plant capacity factors and promote greater efficiency in activities across safety enhancement measures as well as the design, field construction, and asset management of new-build, maintenance and decommissioning projects, thereby contributing to greater customer value. In the SMR business, the joint venture between Hitachi and GE Vernova has received an order for Canada’s first commercial SMR project, and construction has commenced following the final investment decision. In addition, we signed an agreement to advance the Polish generic SMR design. We will continue to pursue and expand opportunities across global markets, including North America and Europe.

*Total Hitachi Energy Service offering includes Software, and select service activities delivered through systems and projects

Launching EcoSpace, a digital sustainability platform

EcoSpace, part of the HMAX Energy portfolio, is a digital sustainability platform that quantifies and visualizes the environmental footprint of power grid projects. The platform enables utilities, grid developers and investors to make faster, data-driven decisions while meeting the growing demand for credible, transparent and strategic sustainability reporting.

Strengthening long-term reliability at the Ulinda Park BESS

Hitachi Energy successfully delivered and is supporting the Ulinda Park battery energy storage system (BESS) at Ulinda Park in Queensland, Australia, through a new HMAX Energy service agreement. Developed by Akaysha Energy, the large-scale battery system has a rated output of 155 MW and storage capacity of 298 MWh. The project supports the integration and stable supply of renewable energy while contributing to enhanced grid stability.

One Hitachi: Collaboration with the DSS sector

Accelerating the deployment of HMAX Energy Leveraging digital engineers across DSS, including GlobalLogic

Ulinda Park BESS, Queensland, Australia

Hitachi Energy data center orders

The competitive advantages of the Energy sector

● World’s largest T&D installed base, with over 500,000 assets and approximately $240 billion value, spanning more than 190 countries ● World-leading OEM expertise

● Dedicated global Service BU ● IT x OT x Products strengths ● World-leading upgrades & retrofit

technology

● Supporting two-thirds of BWR plants in Japan and being involved in the construction of all ABWR (Gen III+) plants

● Delivering new solutions by integrating accumulated technology, expertise, experience, and digital technologies

Power Grids Nuclear Energy

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Four Core Business Strategies

of Growth

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Investor Day (Mobility Business Strategy)

Mobility

Driving the next generation of mobility through digitalization, multimodality, autonomy and agentic AI, backed by our strong position as a sustainable, digital and global mobility player

Business structure

Business performance/Inspire 2027 targets

Senior Vice President and Executive Officer, Giuseppe Marino CEO of Mobility Sector

Business environment

The future of mobility is being shaped by three powerful trends that are transforming the market and accelerating investment in rail infrastructure world-wide. The first is the demand for greater transport capacity, which is driven by population growth and increasing energy costs. The second is a broader view of sustainability, which focuses not only on carbon footprint reduction but also on providing more affordable mobility solutions. The third is the role of digitalization in advancing multimodality by seamlessly connecting multiple modes of transportation.

The global railway market is undergoing a structural transformation and is expected to continue growing over the medium- to long- term. In the near term, the global rail market is projected to expand by approximately 4% annually across signaling, rolling stock and digital mobility. We are also strengthening our presence in high-growth regions, including Germany, Eastern Europe and the Middle East.

Progress of Inspire 2027

Fiscal 2025 marked another year of solid execution against our Inspire 2027 commitments. Revenue increased 13% year over year, adjusted EBITA margin improved by 0.4 percentage points, and order intake grew, resulting in a book-to-bill ratio of 1.2x. Even as we increased CAPEX by 65% and R&D investment by 25% year over year, ROIC excluding PPA and integration-related costs improved by 2 percentage points to 12.5%, while the cash conversion cycle improved to 54.3 days, reflecting continued progress in operational discipline.

We also made strong progress across major projects, including those in Turin, Taiwan and Pittsburgh. In digital mobility, HMAX Mobility was deployed with Tobu Railway and in Copenhagen and more, expanding the installed base to 2,500 trainsets. Importantly, over 35% of these fleets were manufactured by companies other than Hitachi, demonstrating the platform’s ability to serve the broader rail ecosystem. We are building strong sales momentum, with the HMAX opportunity pipeline expanding rapidly from 200 billion yen last year to over 600 billion yen. We also advanced our strategic M&A agenda through the acquisitions of Omnicom, which brings sensor technologies, and Clever Devices, a provider of ITS for public transportation. This marks a major step forward in multimodality, enabling us to expand the HMAX platform into the broader mobility domain.

As a result, we are accelerating our transformation from a rail-focused OEM into a multimodal digital mobility company. By 2030, we aim to expand revenue to approximately 2.0 trillion yen, building on our achievement of growing revenue by 3.5 times from the fiscal 2015 level to fiscal 2025, through a balanced combination of organic growth and strategic acquisitions.

Mobility

• Rail control services • Rail control • Vehicles services • Vehicles

*1 Adj. EBITA excluding integration cost

*2 Adj. EBITA including integration cost: 8.1% (FY24), 8.2% (FY25), 9.4% (FY26), ca 11% (FY27)

Order backlog trends

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Four Core Business Strategies

of Growth

Financial Strategy and Risk Management

13 Energy

15 Mobility

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

The competitive advantages of the Mobility sector

With sustainability, digitalization and global mobility serving as powerful macro trends, Hitachi is leveraging its position as a global full-range provider with established strengths in both signaling systems and rolling stock.

Agentic AI implementation

Deploying AI agents in industrial processes and core use cases:

To drive operational transformation and accelerate execution of key tasks, the Mobility sector is making significant investments in the deployment of agentic AI within our engineering processes. Through our core program, RAILA / Project Jackie+, we have already deployed 90 AI agents across various areas of engineering. This initiative significantly contributes to a shorter time to market, improved product performance and higher productivity.

To highlight a few specific examples, we are leveraging these advanced AI capabilities in bidding documentation and preparation, diagram generation and software coding, substantially improving the efficiency and speed of our operations.

One Hitachi: Collaboration with the DSS sector

Through a One Hitachi collaboration, we have fused Hitachi Rail’s deep domain knowledge and operational expertise with the digital capabilities of the DSS sector to create HMAX Mobility. This comprehensive digital mobility platform integrates advanced Digital Asset Management (DAM) capabilities—such as axle bearing and track condition monitoring, point machine analytics and predictive maintenance to optimize real-time operations, automate vehicle inspections, reduce life cycle costs, improve reliability and drive further quality improvements.

• A major step into multimodality: Through the strategic acquisition of Clever Devices, we are expanding the HMAX platform into the broader mobility domain, including public transit. This major step into multimodality enables us to combine data across broader mobility ecosystems and enhance our value propositions.

• Pioneering physical AI and advanced mobility: Powered by physical AI, we are transforming legacy infrastructure with Autonomous Trams featuring state-of-the-art situational awareness and advanced driverless safety capabilities. Key examples include Copenhagen Metro’s 24/7 autonomous operation (GoA4) with punctuality of over 99% and Tobu Railway’s next-gen DAM for automated inspections.

HMAX is gaining strong momentum. The HMAX opportunity pipeline grew from more than 200 billion yen last year to over 600 billion yen today, encompassing more than 100 identified opportunities across more than 20 countries.

HMAX and Advanced Mobility

3 key business drivers Agentic AI implementation in industrial processes—productivity & innovation (example)

Signaling With the completed integration of Thales GTS, Hitachi has established itself as a global full-range provider in signaling systems, with one of the most comprehensive portfolios in the industry, seamlessly combining digital signaling, operations and asset management capabilities to expand its global footprint and drive stronger value creation.

Rolling stock Hitachi serves as a global full-range provider of rolling stock, which forms a key foundation for the Mobility sector’s digital asset base. We have a particularly strong position in high-speed trains and services. Moving forward, we will drive growth through a selective approach, focusing on our high-speed platforms while continuing to invest in the services business to ensure long-term business stability.

*Image generated by AI

RAILA/Project Jackie+

	AI Agents - Accelerating task execution
Knowledge mgmt tool:	Document analysis and understanding & writing
Requirements mgmt :	Extraction, compliance, quality and classification
Bidding documentation preparation:	Understanding and analysis
Meeting notes & action summary:	Copilot 365
HR chat bot: Policy and FAQ engagement
Diagram generation:	Multimodal diagram creation
Tender authoring / bid writing:	Writing higher quality RFP responses
Extracting data from ERP, transforming and loading into central tool	90 AI-Agen Faster time to Improved product p Software coding and unit testing Higher produ

Global full range provider of

signalling systems Thales GTS integration now completed, delivers expanded global footprint and stronger value creation

Global full range provider of

Rolling stock Selective focus on high-end rolling stock platforms especially high-speed trains. Strong base for recurring business

Digital products and services based on HMAX, Autonomous driving, Revenue collection

Control operational data layers, integrate fragmented systems, enable real-time decision-making and orchestrate autonomous operations

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Four Core Business Strategies

of Growth

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Connective Industries

Driving global industrial transformation through physical AI, powered by strong products and deep domain knowledge

Business environment

In the industrial area, driven by changing customer challenges due to increasing technological complexity, customer needs are rapidly growing for shortening time to market, productivity improvement & quality assurance, energy efficiency improvement and zero downtime. For example, semiconductor verification time has seen a 1.5 times increase, and the types of genetic testing and diagnostics have surged by approximately 200 times. As technologies become increasingly complex and sophisticated, it is becoming difficult for customers to solve these challenges on their own, making collaboration with partners indispensable. Under these circumstances, the Connective Industries sector focuses on physical AI, which autonomously optimizes field operations through digital services HMAX. This is achieved by combining AI with high-precision data generated by strong products including measurement equipment, along with domain knowledge encompassing tacit and explicit knowledge rooted in on-site operations. With the clear aim to become the leading physical AI company for the industrial area, Hitachi’s Connective Industries sector is accelerating growth by focusing management resources on areas with strong AI investment: facilities, semiconductors, medical diagnostics and pharmaceutical manufacturing.

Progress on Inspire 2027

In fiscal 2025, driven by robust Lumada growth by capturing AI demand, the Lumada revenue ratio increased by 9 percentage points year over year to 43%, and the adjusted EBITA margin reached 11.0%. While increasing R&D investment by 8 percentage points year over year in anticipation of future growth opportunities, we improved ROIC by 0.5 percentage points over the previous fiscal year to 12.0%. Particularly strong growth was achieved in three businesses: facilities,*1 semiconductors and life sciences.*2 In the facilities business, expanding related services such as UPS,*3 leveraging data center demand, resulted in a 23% year-over-year increase in revenue. The semiconductor business achieved a 26% year-over-year increase in revenue, driven by diversifying its customer base and capturing AI demand. In the life sciences business, diagnostic equipment shipments reached a record high of approximately 16,000 units, and the biopharmaceuticals maintenance business expanded to approximately 2x its fiscal 2023 level. Thus, the businesses are on track to achieve the Inspire 2027 targets. Going forward, we will further accelerate four initiatives: a clear focus on physical AI business by leveraging our strong products portfolio, accelerating business portfolio transformation, scaling Customer Zero initiatives by leveraging our strengths as a manufacturer and global business expansion. Through these initiatives, we aim to achieve 6-8% revenue growth, an adjusted EBITA margin of 13%+, ROIC of 11-13%, and a Lumada revenue ratio of ca. 50% in fiscal 2027.

Connective Industries sector vision

Business structure

Industrial Products BU 539.2 billion yen (16%)

Industrial Solution BU 1,426.6 billion yen

(43%) Measurement & Analysis Systems (Hitachi High-Tech)

(25%)

Industrial OT Solutions

Building Systems (26%) Smart Life & Ecofriendly Systems (Hitachi GLS) Hitachi Power Solutions

Urban Solutions & Services BU 1,333.4 billion yen

(41%) FY2025

Revenues 3,086.0 billion yen

Industrial Solution BU Strengthening solutions business through measurement and digital integration

・Healthcare (clinical chemistry and immunochemistry analyzers, automated cell culture equipment, particle therapy system, etc.), measurement and analysis (semiconductor manufacturing & metrology/inspection

equipment, electron microscopes, etc.)

・Industry and distribution solutions, robotic SI, Industrial process, utility, water supply and sewerage solutions

Industrial Products BU

Expanding product business to enhance digitalized assets ・Mass-produced industrial equipment (air compressors, marking systems, power distribution equipment, etc.) ・Custom-made industrial equipment (process compressors, drive systems, UPS, etc.)

Urban Solutions & Services BU

Accelerating services business in the facilities area ・Elevators, escalators and building services ・Home appliances and air-conditioning systems ・Field service, carbon neutral solution

*1 Calculated based on revenue from FY2026 reportable segment structure, excluding certain restructuring operations

*1 Business areas targeting social infrastructure and facilities that require high reliability, such as data center equipment, elevators and escalators, industrial HVAC, and industrial equipment (compressors, etc.)

To Become the Leading Physical AI Company for the Industrial Area

Time to Market

Productivity Improvement & Quality Assurance

Energy Eciency

Improvement Zero Downtime

Physical AI

Domain Knowledge

Digital Services

Digitalized Assets

Physical World

Operational Data Feedback Tacit and explicit knowledge rooted in on-site operations

Products A large installed base of highly reliable products

Generate previously unavailable data through advanced measurement technologies

Business performance/Inspire 2027 targets

Senior Vice President and Executive Officer, Noriharu Amiya CEO of Connective Industries Sector

Investor Day (Connective Industries Business Strategy)

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Four Core Business Strategies

of Growth

Financial Strategy and Risk Management

13 Energy

17 Connective Industries

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Value proposition Digital services

Predictive maintenance ensures reliable and safe operation of building facilities

Enhancing the eciency of building operations, ensuring security and promoting energy savings Domain knowledge ×

added value of buildings

diagnostics

eciency

knowledge

Digitalized assets

Remote monitoring and sensing of information on building operations and flows of people

Maintenance information

Building facilities Building users Front-line

engineers

Leveraging Hitachi’s domain knowledge cultivated over many years in the facilities area, together with GlobalLogic’s extensive experience and expertise in agile development, we have evolved BuilMirai, a digital service within the HMAX for Buildings portfolio, into an as-a-service offering. By connecting building equipment, front-line engineers responsible for maintenance, and building occupants, and by utilizing data generated from equipment and human activities, this service improves building operational and maintenance efficiency, energy efficiency, and the well-being of building occupants. Going forward, we will further expand this value creation platform under One Hitachi by connecting this service to the equipment and facilities of our co-creation partners, and deploying it not only in commercial buildings but also in mission-critical buildings such as data centers.

Expansion of the physical AI business in four key focus areas

The Connective Industries sector has identified four focus areas—facilities, semiconductor manufacturing, diagnostics and pharmaceutical manufacturing—to drive growth through physical AI, building on the strength of a large installed base of highly reliable products. Leveraging high-precision data generated by these globally top-class digitalized assets—including 650,000 connected elevators and escalators, CD-SEMs* with a global market share of approximately 76%, and global No. 1 clinical chemistry and immunoassay analyzers and genetic testing instruments—we will provide the HMAX Industry suite of AI solutions through co-creation with customers and partners. Through these efforts, we will deliver customer value such as improving operational efficiency and shortening Time to Market, aiming to expand the physical AI business.

Furthermore, Hitachi’s proprietary edge AI semiconductors will be key to accelerating the growth of the physical AI business. These edge AI semiconductors are over 10 times more power-efficient than cutting-edge GPUs, enabling intelligent operation of products without the need for dedicated servers. By integrating AI semiconductors to further strengthen our No. 1 products, deepening co-creation through AI semiconductor integration in partner products, and accelerating the verification and creation of solutions through the Customer Zero model, we will further accelerate the expansion of the physical AI business.

Research and development investments to expand the physical AI business

We will increase R&D investment to expand the physical AI business by expanding and intelligently optimizing our products. Centered on the three pillars of Advancements in Measurement Technology, Physical AI Enablers, and Product Evolution, we will make a three-year cumulative R&D investment of 370.0 billion yen through fiscal 2027.

Transforming the business portfolio centered on physical AI

We will accelerate building a business portfolio centered on physical AI and generating next global top products. To expand the physical AI business in our focus areas, we will make focused investments in key areas including expansion of the measurement portfolio and strengthening OT. Furthermore, we will achieve further expansion of physical AI business through the generation of our next global top products in our next growth areas: Data Centers, Robotics, Advanced Materials and the Circular Economy. Additionally, beginning with the reorganization of the home appliance business announced in April 2026, we will optimize our business portfolio by leveraging the strengths of each division while further accelerating our focus on physical AI.

One Hitachi: Co-creation with the DSS sector

Realizing HMAX for Buildings in collaborations with GlobalLogic

	Competitive advantages of the Connective Industries sector
Strong products and deep OT knowledge	Physical AI implementation capabilities
● Deep domain knowledge built through decades of
● Extensive installed base of highly reliable products
● Advanced measurement technologies that generate
● Integration capabilities across multiple products and
manufacturing excellence	● Comprehensive capabilities for end-to-end optimization from data integration and analytics to feedback in the field
	● Advanced data utilization driven by deeper customer and partner co-creation
previously unavailable data	● Accelerating the verification and creation of solutions through the Customer Zero model
data	● Intelligent operation of products enabled by proprietary edge AI semiconductors

Competitive advantages of the Connective Industries sector

Physical AI business in focus areas

Focus area	Digitalized assets Physical AI value
●	Connected elevators &
●	HVAC
●	UPS for data centers
manufacturing ●	CD-SEM
●	Clinical chemistry and
●	Genetic testing instruments
●	Spectrophotometers
●	Bioreactors
●	Line build

*CD-SEM: Critical Dimension - Scanning Electron Microscope

HITACHI INTEGRATED REPORT 2026

Contents

Four Core Business Strategies 12 HMAX—Recurring Digital Services

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Investor Day (Digital Systems and Services Business Strategy)

Business environment shifts driven by AI and key initiatives New business opportunities driven by AI 100trillion yen*1 (2030)

Modernization AI services*2

FY2025-2030 (Global)*1 CAGR 15–20% FY2025-2030 (Global)*1 CAGR 30–35% FY2025-2030 (Global)*1 CAGR 15–20% Electric power & utilities, rail & transportation, manufacturing, government & public sector

AI deployment in mission-critical systems with ensured reliability and safety

Social infrastructure × AI

Needs

Reliable AI deployment in complex enterprise systems

Growth in the modernization and AI services market

Growth in the social infrastructure x AI market ● Deployment of physical AI in social

infrastructure

● Create value to innovate social

infrastructure

Needs

Physical AI

● Further deepen customer co-creation through the FDE* Team ● Transform into a continuous value

delivery model*4

Business performance/Inspire 2027 targets

Digital Systems & Services Business structure

Leading the Hitachi Group’s digital transformation and accelerating AI deployment across social infrastructure worldwide

Business environment

AI is fundamentally transforming the IT services industry, driving a structural shift in the market. The most important change is not simply greater operational efficiency through automation and, even more importantly, the creation of entirely new markets. New value creation and rapid market expansion are emerging in areas such as modernization and AI services, as companies implement AI in complex enterprise systems to drive business transformation, and physical AI, where AI is deployed in mission-critical systems, including social infrastructure, while ensuring reliability and safety. We believe these new markets will reach approximately 100 trillion yen by 2030, and this expansion is already underway.

With its proven track record in developing and operating mission-critical systems, domain knowledge spanning IT, OT and products, and a global customer base, Hitachi has a competitive advantage that enables it to create value and generate sustainable earnings in these markets. The rise of AI represents a clear growth opportunity for the company.

Progress of Inspire 2027

In fiscal 2025, the DSS sector achieved record earnings, driven by strong performance in Japan. The adjusted EBITA margin improved 1.3 percentage points year over year to 15.5%. In addition to double-digit growth in the proportion of high-margin Lumada revenue, profitability improved as the business continued to shift toward a higher-value-added business model. Despite a 14% year-overyear increase in capital expenditures, ROIC improved 1.2 percentage points year over year to 11.5%, demonstrating strong capital efficiency. In particular, the domestic IT services business achieved an adjusted EBITA margin of 18.4%, placing it among the most profitable IT service providers in Japan. Furthermore, total orders for large-scale projects (defined as contracts valued at 3 billion yen or more) increased 87% year over year. The 1.8 trillion yen backlog provides a solid foundation for future revenue growth, while the customer base in mission-critical domains, particularly across financial systems and social infrastructure systems, is a key source of competitive advantage. Globally, GlobalLogic is shifting its business portfolio toward AI and has increased synergy revenue with OT sectors by 73% year over year, contributing to the expansion of Lumada business under One Hitachi.

Going forward, we will simultaneously target two markets: Modernization and AI services, and Social infrastructure × AI (physical AI). By capturing steady growth through our established customer base in the former and harnessing the high-growth opportunities in the latter, we aim to build a sustainable competitive advantage.

Executive Vice President and Executive Officer, CEO of Digital Systems & Services Sector Jun Abe

	Building and operation of mission-critical IT and digital systems
・	Financial Systems
・ SI & Services	Social Infrastructure Systems (Public sector, Energy, Transportation, Telecommunications, etc.)
・	Industrial Systems Developing and operating IT, digital solutions and services
・ Engineering	Hitachi Systems ・ Hitachi Solutions
・ & Services	AI & Software Services BU
・	GlobalLogic ・ Hitachi Digital Services
IT Products ・	Hitachi Vantara (Storage business)
・	Hitachi Channel Solutions (ATM business)

*1 Based on the FY2026 reportable segment structure *2 Announced on July 29, 2026 *3 Announced on June 10, 2026

*1 Internal analysis based on industry reports *2 A general term for services related to AI, including AI deployment and operation *3 Forward Deployed Engineer *4 Value-based and recurring business model

HITACHI INTEGRATED REPORT 2026

Contents

Four Core Business Strategies

of Growth

Financial Strategy and Risk Management

13 Energy

19 Digital Systems & Services

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Hitachi’s AI-driven system integration process

Growth in the modernization and AI services market

Addressing strong customer demand for transformation in the AI era, we drive AI readiness and implementation across IT systems, converting growth market opportunities into tangible value. To support this transformation, we have developed the AI-driven Agentic AI Integration Platform, combining Hitachi’s knowledge with frontier AI. By storing tacit knowledge—such as customerspecific operational expertise and decision-making criteria—as enterprise context, it creates an autonomous sophistication cycle via AI agent feedback. Through this approach, we aim to achieve a 30% productivity improvement across the entire development processes by fiscal 2027.

In addition, the FDE Team, leveraging AI to rapidly solve complex challenges, provides end-to-end support at customer sites, from problem definition through implementation and operation. Its speed in delivering prototype proposals forms a core competitive advantage, and we aim to expand the team to 5,000 professionals in Japan. Leveraging an installed base of approximately 15,000 customer systems, we target expansion of domestic revenue from 2.2 trillion yen in fiscal 2025 to 3 trillion to 5 trillion yen by fiscal 2030. Through the continuous evolution of systems, Hitachi will enhance customer competitiveness and support sustainable business growth.

*Man-hour and lead time reduction across all SI phases compared to cases without the application of AI

AI deployment across social infrastructure—including power grids, railways and large-scale industrial facilities—is creating a market expected to grow to several trillion to more than 10 trillion yen over time. Despite its potential, the market remains largely unconsolidated, with no clear leader yet to emerge. Hitachi aims to lead this market by delivering HMAX as an integrated offering that brings together four distinctive strengths: Physical AI built on domain knowledge, the Physical AI FDE Team, Mission Critical Security, and Data Fabric.

Successfully deploying AI in social infrastructure requires the integration of IT and OT. Our Physical AI FDE Team combines the AI and data expertise of GlobalLogic and Hitachi Digital Services with decades of OT domain knowledge, enabling customers to turn AI capabilities into measurable business value. The foundation that enables this approach is Data Fabric, our data integration platform. By connecting and structuring distributed IT and OT data, Data Fabric enables optimization across individual systems and entire industries. For example, it can connect renewable energy generation data with factory production planning data to optimize operations across domains. This capability creates recurring value for customers and supports long-term revenue growth.

One Hitachi — Scaling HMAX

Creating new value across industries with Hitachi’s Data Fabric at the core

The competitive advantages of the DSS sector

Development and operation of mission-critical systems

Extensive talent resources with expertise in IT, OT and AI

● Approximately 15,000 installed customer systems in Japan and a backlog of 1.8 trillion yen (DSS sector total, as of March 31, 2026)

● Execution capabilities in SI and AX (AI Transformation) for delivering complex, large-scale projects

● FDE Team that creates value by starting from customers’ business challenges Core Talent Base ● 35,000 systems engineers in Japan

● Approx. 30,000 global professionals with

advanced AI expertise

AI implementation capabilities

for social infrastructure ● More than 110 years of domain knowledge in social infrastructure and over 60 years of AI research ● Highly reliable AI implementation that delivers Expanding capabilities through partnering

business outcomes, validated through internal deployment (Customer Zero) ● Mission-critical security

● Continuously enhancing customer problem-solving capabilities by incorporating advanced technologies through co-creation with a broad range of partners

Hitachi’s strength lies in its diverse business domains that support society, which serve as real-world environments for creating value. Data Fabric is the common platform that integrates and structures the vast volumes of IT and OT data distributed across these environments, transforming them into value that AI can interpret and act upon. With this platform at its core, the DSS sector will turn insights generated by the FDE Team in the field, together with knowledge gained through internal deployment (Customer Zero), into reusable assets to drive new value creation across industries.

Through these initiatives, we will lead the scaling of HMAX across the OT sectors and achieve sustainable digital value creation and earnings growth across the Hitachi Group as a whole.

Strengthening the foundation for growth

To support future growth, we will increase organic investment by 30 billion yen in fiscal 2026, accelerating investment in talent and technology, including FDE Team development and proprietary AI capabilities. We have also secured up to 1 trillion yen for inorganic investments during the Inspire 2027 period and will actively use M&A to expand in high-growth markets. At the same time, we will accelerate value creation by strengthening our partner ecosystem through partnering with Anthropic, Google Cloud, NVIDIA, OpenAI and others.

We will continue improving profitability and capital efficiency through portfolio transformation. This includes focusing on the block storage business, where we have a competitive advantage and integrating the ATM business with OKI. Through these initiatives, we are building a more focused portfolio positioned for sustainable growth.

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Four Core Business Strategies

of Growth

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Research & Development Strategy

R&D strategy vision

——Driving technology differentiation and accelerating

commercialization, capturing market and technology inflection points

Hitachi is capturing market and technology inflection points and accelerating commercialization through research and development. In addition to growing its core businesses through the expansion of the Lumada business, Hitachi is advancing technological innovation through Group-wide collaboration and strategic partnerships with external partners to capture growth markets in strategic fields across regions and countries, and to create new markets by addressing social challenges. Through these initiatives, Hitachi will strengthen the technological foundation of its core strengths in IT, OT and products, while translating the outcomes of R&D into business value and contributing to the resolution of social challenges and business growth.

Contributing to the growth of four core businesses

Hitachi’s R&D supports the competitiveness and sustainable growth of its core businesses by expanding the Lumada business through HMAX, and advancing differentiation through physical AI. Looking ahead to customers’ business model transformation, Hitachi is developing and scaling AIenabled business models while expanding business opportunities across industries by implementing physical AI in social infrastructure through a new infrastructure intelligence foundation model.

To implement Physical AI safely and reliably in mission-critical social infrastructure, it is essential to prevent serious risks such as large-scale power outages and railway accidents resulting from incorrect AI decisions. Accordingly, drawing on its multilayered OT knowledge accumulated over many years and its deep understanding of physical phenomena, Hitachi has developed IWIM, a social infrastructure intelligence foundation model designed for AI-enabled operations. IWIM supports appropriate decision-making and control of equipment and systems even under complex conditions, while enhancing the entire life cycle from design and construction to operation and maintenance in an integrated manner. Through its implementation, IWIM supports the transition to safe, highly reliable and highly efficient autonomous operation of social infrastructure and continuously creates value.

Creating Lumada synergies through IWIM

IWIM enables the safe and sustainable advancement of social infrastructure fields, including data centers, energy, mobility and manufacturing and logistics. It also helps address challenges in cross-domain areas created through the convergence of these industries. As collaboration across industries and layers and the optimization of social infrastructure become increasingly important, Hitachi will use IWIM as a foundation for innovation across social infrastructure and accelerate the creation of synergies within the Lumada business.

Creating inflection points and pioneering new horizons toward a Harmonized Society

IWIM framework

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

Four Core Business Strategies

Innovation for the Next Stage of Growth 21 Research & Development Strategy

Governance

Financial Strategy and Risk Management

13 Energy 17 Connective Industries 15 Mobility 19 Digital Systems & Services

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Past Mid-term Management Plans 10-Year Financial Data 5-Year ESG Data Corporate Data and Stock Information

Data

In addition to these industry-specific use cases, Watt-Bit integration is an example of an approach that addresses challenges across multiple domains. When transmitting electricity (watts) is difficult, the system instead transfers AI-processed data (bits) to data centers in other regions, thereby optimizing load distribution across the entire power grid. IWIM combines power grid analysis technologies with data center operational expertise to digitally model complex physical phenomena and the causal relationships underlying operations. This enables optimized operation of power grids and data centers based on highly accurate forecasts.

Other examples include wide-area mobility infrastructure management, which supports efficient urban transportation by coordinating power grids and mobility systems, and the physical internet, which enables seamless coordination between manufacturing and logistics. Hitachi is leveraging IWIM to address challenges across a wide range of cross-domain applications.

Capturing growth markets

Hitachi’s R&D is advancing the development of technologies that help secure leading positions in growth markets in priority areas, including data centers and healthcare, promoted by the Strategic SIB (Social Innovation Business) BU. Drawing on the social challenges and industrial needs unique to each region and country, Hitachi is creating new value by combining advanced digital technologies with knowledge cultivated through social infrastructure. Examples include high-efficiency cooling systems and power optimization technologies that support energy-efficient data center operations, as well as technologies that accelerate pharmaceutical manufacturing processes and enhance automated cell culture. Through these technological advances and co-creation with partners, Hitachi will accelerate commercialization, support the transformation of society and industry, and achieve sustainable growth.

Creating new markets

In its Next domain, which is focused on addressing increasingly complex social challenges and creating new markets for the future, Hitachi is pursuing world-first and world-leading technologies, including breakthroughs in computing performance through large-scale silicon quantum computers and innovations in infrastructure operation and maintenance using space big data. With Chowa-no-Oka, a social infrastructure research center scheduled to be established in Hitachi City, Ibaraki Prefecture, in 2030, as a hub, Hitachi will strengthen its open ecosystem with academic institutions and partners in Japan and overseas and promote a consistent approach that spans cutting-edge research through social implementation across multiple disciplines. Through these initiatives, Hitachi will help realize a harmonized society by digitally transforming social infrastructure.

Growth markets prioritized by Hitachi

Initiatives in the Next domain

Conceptual rendering of the Chowa-no-Oka research center building

Synergy use cases enabled by IWIM

Use case 1 Manufacturing: Physical AI orchestration system

In industrial workplaces, preserving front-line operational capabilities and passing on skills amid a shortage of experienced workers have become urgent challenges. To address these challenges, Hitachi has developed Front-line Coordinator – Naivy, a next-generation AI agent that effectively integrates and coordinates on-site information and provides necessary

information to workers and robots in a timely and easily understandable way. Naivy will be offered as part of HMAX Industry, its portfolio of next-generation solutions for the industrial sector. By integrating Naivy with IWIM and enhancing a variety of interaction capabilities, including AI debriefing for operational review, Hitachi will accelerate the capture and utilization of on-site knowledge and support the co-evolution of workers, AI and robots.

Note: “Naivy” is a product/service name used in Japan.

Use case 2 Energy: Optimizing power grid interconnection planning

In North America, Southwest Power Pool Inc. (SPP) is seeing an increasing number of generation and load interconnection requests as electricity demand surges, driven by the rapid expansion of data centers, EV charging and manufacturing. In partnership with NVIDIA, Hitachi is applying the IWIM concept, which integrates AI with models of physical infrastructure—including the power grid, generation resources, data centers and other loads—to accelerate transmission planning while maintaining engineering rigor. Through this initiative with Hitachi combined with other internal processes, SPP anticipates reducing the study processing time by 80%, enabling faster decision-making, higher quality solutions, and improved overall efficiency.

Conceptual rendering of Naivy

Power generation and transmission facilities, North America (image)

HITACHI INTEGRATED REPORT 2026

Annual Securities Report Corporate Governance Report

Management Plan (April 2026)

Who We Are

Four Core Business Strategies

Innovation for the Next Stage of Growth 21 Research & Development Strategy

Governance

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Progress on Inspire 2027

Achieving record-high profit in the first year

while continuously enhancing our cash generation capabilities

Business performance in fiscal 2025, the first year of Inspire 2027, the Hitachi Group’s Management Plan, exceeded our initial forecasts. Growth was driven by the Power Grids business in the Energy sector, robust domestic IT business in the DSS sector, and the railway systems business in the Mobility sector, resulting in year-on-year increases in both consolidated revenues and profit.

In terms of profitability, adjusted EBITA, net income, and core free cash flow (core FCF) all reached record highs. The adjusted EBITA margin improved by 1.3 percentage points, reflecting higher profitability in the Energy and DSS sectors, as well as the steady expansion of the Lumada business. Core FCF increased, driven by higher earnings along with the advances received from large projects. In addition, our cash flow conversion remained above our 90% target. We believe that Hitachi’s ability to steadily convert profit into cash is a key strength of our earnings structure. We will aim to continuously increase core FCF going forward by achieving revenue growth and higher profit margins through the expansion of the Lumada business, in addition to further improving the conversion of profit to cash.

For fiscal 2026, we forecast increases in both revenues and profit across all four sectors, led by the Power Grids business in the Energy sector and the domestic IT business in the DSS sector. While continuing to closely monitor the Middle East situation, we expect to achieve further growth building on the strong performance achieved in fiscal 2025, even as we strengthen strategic investments to support steady growth. Over the two-year period from fiscal 2024, EPS is expected to grow at a CAGR of 23%. Core FCF is also projected to achieve a CAGR of 32% over the same two-year period, even excluding the impact of advances received from large projects. Going forward, we will continue to enhance our cash generation capabilities based on the underlying strength of our businesses, without relying on one-off factors.

R&D and capital expenditures (CAPEX). In fiscal 2025, capital expenditures (CAPEX) totaled 497.8 billion yen, representing an increase of 106.1 billion yen year over year. On the other hand, regarding inorganic growth investments, we were unable to execute sufficient investments because we could not find opportunities that aligned with Hitachi’s business strategy while also promising suitable returns, which remains a key challenge. Furthermore, compared to our global peers, we recognize the need to increase our profitability even further, and to continue strengthening our business portfolio and risk management.

Overview of performance in fiscal 2025 and outlook for fiscal 2026

(Key Inspire 2027 indicators)

Revenues CAGR*1	FY2024 (result) YoY 14%	FY2025 (result) YoY 8%	FY2026 (forecast)*4 YoY 11%	FY2027 (target) CAGR 7-9%
Adj. EBITA margin Cash flow conversion*2	11.7%	12.4%	13.0%	13-15%
(Excluding advances received from large projects)	83%	103%	100%	Over 90%
ROIC	10.9%	12.4%	13%	12-13%
Lumada Revenue ratio	29%	40%	44%	50%
Adj. EBITA margin	15%	16%	17%	18%

*1 Fiscal 2027 targets are based on a three-year CAGR.

*2 Core FCF*3 (excluding advances received from large projects) / Net Income

*3 Core FCF is presented as free cash flows excluding cash flows from M&A and asset sales, etc. *4 Announced on July 29, 2026

Tomomi Kato Senior Vice President and Executive Officer, CFO and CRMO

EPS trends

Cash generation trends

CF conversion trends (Excluding advances received from large projects)

Reducing the Cost of Capital Enhancing Growth

Balancing an unwavering commitment to growth with disciplined management

Becoming the global leader in continuously transforming social infrastructure through digital

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

Four Core Business Strategies

of Growth

Financial Strategy and Risk Management 23 CFO and CRMO Message

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Capital allocation (growth and shareholder returns)

Focus on returns and allocate cash between growth investments and shareholder returns in a balanced and flexible manner

Our capital allocation policy remains consistent with the previous year. We will continue to focus on returns and allocate cash between growth investments and shareholder returns in a flexible and balanced manner.

Specifically, we will first allocate core FCF to growth investments and shareholder returns. Our ongoing efforts to enhance cash generation capabilities have increased the amount of cash available for allocation. Next, cash from asset sales will be invested in growth if attractive opportunities exist; otherwise, it will be allocated to share buybacks. We will also utilize borrowing leverage for growth investments in accordance with our financial discipline. Regarding inorganic growth investments to support sustainable growth, we will focus our acquisitions on digital enhancement and service expansion. The majority of these transactions are expected to take the form of bolt-on M&As that complement existing businesses. In making M&A investment decisions, we will apply rigorous discipline by considering risk, return, ROIC-WACC spread, and strategic fit of Lumada growth. In fiscal 2025, the number of internal deliberations related to portfolio reform tripled year on year, reflecting significantly more active discussions. Through both the divestiture of non-core businesses and investments in growth areas, we have steadily executed investments that contribute to the expansion of Lumada, particularly digital services, thereby shifting our portfolio toward higher-growth areas.

In addition to inorganic growth investments, we are actively allocating capital to organic growth investments, with a particular focus on expanding capital expenditures (CAPEX). By executing investments to increase production capacity in growth areas, we will steadily capture opportunities that promise high investment returns. We will also increase strategic investments including talent development and acquisition, to accelerate AI-driven business creation and strengthen business resilience.

Regarding shareholder returns, our policy is to continuously increase the amount of returns over the medium to long term, with a commitment to return one-half or more of either core FCF or net income. With regard to dividends, we aim to achieve stable growth in line with business growth. Supported by the steady growth of core FCF, we have increased dividends for 10 consecutive years. On a cash payment basis, the annual dividend per share is projected to increase from 41 yen in fiscal 2024 to 55 yen in fiscal 2026. Regarding share buybacks, we will flexibly implement them, taking into comprehensive account cash generation, our financial condition, the progress of asset sales, and other relevant factors. We expect share buybacks to increase significantly from 200.0 billion yen in fiscal 2024 to 550.0 billion yen in fiscal 2026.

As a result, the total shareholder return ratio for fiscal 2026 is expected to increase to 89%, while total shareholder returns are projected to expand from approximately 390.0 billion yen in fiscal 2024 to 800.0 billion yen.

Shareholder returns trends

*1 Portion acquired in April (50.0 bn yen) out of the amount resolved on January 29, 2026, and the amount resolved on April 27 (500.0 bn yen) *2 Core FCF includes advances received from large projects

Execution of portfolio reform

●	Astemo
●	Hitachi Global Life
●	Hitachi Construction
●	Hitachi Channel
●	Johnson Controls-Hitachi
Inorganic growth investments (acquisitions)	Asset sales (business restructuring)
Projects Purpose

Capital allocation policy

HITACHI INTEGRATED REPORT 2026

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Improving capital efficiency

Sustainably expanding the ROIC–WACC spread through improving returns and reducing WACC

In fiscal 2025, we continued to maximize returns and optimize invested capital through the expansion of the Lumada business, thereby successfully improving ROIC. ROIC rose from 10.9% in fiscal 2024 to 12.4%, maintaining an upward trend.

To improve ROIC, we will continuously enhance capital efficiency by addressing both the numerator (returns) and the denominator (invested capital).On the numerator side, we will improve the returns for ROIC by boosting the growth potential and profitability of our four core businesses with Lumada at their core. At the same time, we will expand the use of AI to improve productivity. On the denominator side, we will optimize invested capital by driving asset-light business models through portfolio reform and optimizing our equity ratio.

To further expand the ROIC–WACC spread, we will strive to reduce WACC by using leverage, optimizing β by stabilizing profitability through the expansion of digital services, and communicating with stakeholders in the capital markets.

Inorganic growth investments are essential to sustaining the growth of our businesses. While ROIC may drop momentarily following such investments, we are committed to its prompt recovery. Looking ahead to fiscal 2027, we target maintaining ROIC at the current level of 12–13%, even as we actively pursue inorganic growth opportunities. We will continue to drive higher capital efficiency by steadily building on the results of our transformation initiatives.

Strengthening risk management

Advancing ERM to mitigate threats while capturing growth opportunities

For Hitachi to enhance its corporate value over the medium to long term, it needs not only to grasp risks as threats but also to see their positive aspects as business opportunities to create profitearning opportunities.

As the Chief Risk Management Officer (CRMO), I identify major risks across the Group and am promoting the advancement of ERM through collaboration across our sectors, regional units, and corporate functions amidst a rapidly changing business environment. By continuously identifying Key Risks, monitoring the status of our responses, and discussing additional countermeasures, we aim to mitigate losses caused by threats while capturing opportunities for growth. Furthermore, combining the CFO’s perspective on financial discipline and capital efficiency with my responsibilities as CRMO enables me to evaluate risk and return from multiple perspectives, thereby supporting disciplined growth investments. Comprehensiveness

To advance ERM, we are focusing on strengthening three priorities: comprehensiveness, timeliness, and organizational responsiveness. In terms of comprehensiveness, we have established Group-wide risk items, selection processes, and evaluation methods to identify Key Risks to be addressed across Hitachi. In terms of timeliness, we report the status of these Key Risks at monthly executive committee meetings and discuss additional countermeasures, allowing us to respond rapidly to changes in the business environment.

Group risk management system

Measures for improving ROIC and expanding ROIC–WACC spread

● Strengthen the four core businesses with Lumada at their core (expand profitable digital service business)

● Improve productivity (utilizing AI)

● Utilize leverage

● Asset Light

Continue asset sales from the perspective of asset eciency, and promote cash generation and ROIC improvement through portfolio restructuring Scope: Low profit/low growth business, and non-core assets

(exit policy of Lumada strategy) Criteria: Growth potential as Lumada business, rationality of possession and ROIC

● Optimize equity ratio

Balance among capital eciency, asset risks and debt

Maximize returns

Optimize Invested capital

NOPAT

Invested capital

Equity in earnings (losses) of aliates

ROIC ×100

Continuous monitoring in every business to expand ROIC–WACC spread

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

In terms of organizational responsiveness, we assign Risk Management Officers (RMOs) across our sectors, regional units, and corporate functions, incorporating their diverse perspectives to promote Group-wide risk management.

To ensure comprehensive and efficient risk management throughout the Group, we have established Group-wide risk items and evaluation methods in our internal regulations for Group-wide risk management. Risks are assessed by evaluating the impact and likelihood of occurrence for each risk item and creating a Group risk heat map. First, each sector and BU identifies risks associated with its business activities and evaluates their impact and likelihood of occurrence using a bottom-up approach. The results of the bottom-up approach are reviewed by members of the Senior Executive Committee and others from the perspective of the Hitachi Group as a whole and the overall risk portfolio, and the key risks for the Hitachi Group are selected (top-down approach). Through this robust process, we determine our countermeasures against Key risks from the perspectives of avoidance, mitigation, transfer, and acceptance. We regularly monitor the effectiveness of these risk responses and implement additional countermeasures as necessary to drive continuous improvement.

Among the areas we are currently monitoring most closely are procurement, which is affected by the Middle East situation; talent acquisition and retention, which is critical to our growth strategy and productivity improvements; and technological progress, including opportunities arising from AI. While these areas represent risks to our business activities, we believe that, if managed appropriately, they can also create new opportunities for growth. In response to the Middle East situation, our sectors, regional units, and corporate functions are working together to quickly visualize predicted business impacts and accelerate countermeasures. With respect to AI, we believe the opportunities for Hitachi outweigh the associated risks. While appropriately managing AI-related risks, we will capture growth opportunities by applying physical AI to mission-critical social infrastructure and driving AI transformation for customer operations. For growth investments, it is essential not simply to avoid risk, but to take disciplined risks based on a multifaceted assessment of risk and return. By determining our risk appetite from a Group-wide perspective and supporting decisions on growth investments and portfolio reform, we will effectively balance capturing growth

opportunities with appropriate risk management, thereby contributing to the sustainable enhancement of corporate value.

Message for shareholders and investors

Accelerating our transformation into the world-leading Digital Infrastructure Company while balancing relentless growth with disciplined management

Even in a rapidly evolving business environment, Hitachi remains committed to balancing relentless growth with disciplined management as we strive to become the global leader in continuously transforming social infrastructure through digital technologies. Over the past few years, geopolitical risks have intensified, with global trade tensions and regional disputes becoming more apparent. Moreover, amid the rapid evolution of AI, the global political, economic and social landscapes are changing at unprecedented speed.

Even in this uncertain business environment, I am committed to fulfilling my responsibilities as CFO while concurrently serving as CRMO. By enhancing our ERM framework and accelerating Hitachi’s transformation into the world-leading Digital Infrastructure Company with the Lumada business at its core, we aim to achieve high profitability and sustainable growth. Futhermore, I will continue to enhance Hitachi’s corporate value by engaging in active, constructive dialogue with our shareholders and investors.

Risk evaluation process and heat map

Top-down approach Members of the Senior Executive Committee etc. select key risks based on information about risks that were assessed and collected with the bottom-up approach.

Bottom-up approach Each sector/BU identifies and assesses risks

Details of the following initiatives are available in the Sustainability Report:

Climate-related Financial

Information Disclosure Efforts against Investment risks AI governance-related initiatives Business ethics and compliance

Quantitative understanding of risks Information security Moreover, details on risks for our business and others are available on page 40 of the Annual Securities Report

HITACHI INTEGRATED REPORT 2026

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

Four Core Business Strategies

of Growth

Governance

Financial Strategy and Risk Management 23 CFO and CRMO Message

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Past Mid-term Management Plans 10-Year Financial Data 5-Year ESG Data Corporate Data and Stock Information

Data

•Expand business opportunities by strengthening human capital and creating environmental and social value

•Achieve sustainable growth by developing human resources with a growth mindset andcreating innovation originating from social challenges

Maximizing Value Creation

Enhancing Growth

Value Enhancing Reducing the Cost of Capital

Growth

Maximizing Value Creation

PLEDGES contributes to all elements of Hitachi’s Corporate Value Enhancement Formula. ( P. 04)

Sustainability Strategy

CHRO and CSuO Message

Hitachi has spent more than 110 years addressing societal challenges, guided by a founding commitment to solving them through its corporate philosophy. Our management plan, Inspire 2027, builds on this same commitment: by leveraging our strengths in IT, OT and products more than ever before, we aim to contribute to a Harmonized Society where the environment, wellbeing and economic growth are in balance, and to sustainably enhance our corporate value.

Delivering sustainable growth through PLEDGES

Senior Vice President and Executive Officer, Lorena Dellagiovanna Chief Human Resources Officer and Chief Sustainability Officer

PLEDGES in action

Creating long-term corporate value requires disciplined execution and an organization equipped to adapt. As we advance Inspire 2027, PLEDGES guides how we lead and manage our business and embed sustainability into our decisionmaking and operations to create long-term value for our customers, society and shareholders.

Our people are central to our success. By investing in leadership, critical skills and an inclusive high-performance culture, we are building the agility and resilience needed to innovate, respond to changing market expectations and deliver sustainable growth.

Turning commitments into progress

In fiscal 2025, we made measurable progress across the PLEDGES pillars. We advanced decarbonization circular economy and nature positive initiatives, reinforced governance and human rights across our value chain, and continued to focus on health and safety as our highest priority. We are also further embedding sustainability in business planning and operational decision-making, with consistent execution across the Group.

External recognition—including the AAA MSCI ESG rating, the Catalyst Award for advancing inclusion and recognition as one of the World’s Most Ethical Companies—reflects the progress we are making and reinforces confidence in our long-term approach.

Building the organization of the future

Delivering Inspire 2027 depends on our people’s capabilities and the resilience of our organization.

In fiscal 2025, we strengthened our leadership pipeline, expanded internal mobility and invested in the skills required to respond to rapidly evolving business and societal demands,

while fostering greater collaboration across the Group.

These efforts are helping us operate as One Hitachi and respond to customers with greater speed, agility and innovation.

Accelerating AI adoption

At Hitachi AI is both a significant business opportunity and an important organizational capability. In fiscal 2025, we accelerated the responsible adoption of AI by expanding AI literacy, developing workforce capabilities and scaling practical applications. Our objective is not simply to deploy new technology, but to combine AI with human expertise to improve productivity, support decision-making and accelerate innovation.

Looking ahead

Our priorities are clear: we will continue embedding PLEDGES across our business, executing with discipline, building the capabilities required for future growth, creating an organization in which people and technology can perform at their best and deliver the greatest impact, and scaling responsible AI. Through these priorities, we will strengthen Hitachi’s competitiveness and deliver sustainable, long-term value for customers, society and shareholders.

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

Four Core Business Strategies

of Growth

Sustainability Strategy 23 CFO and CRMO Message

Governance

Financial Strategy and Risk Management

13 Energy

27 CHRO and CSuO Message

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Sustainability Strategy PLEDGES

PLEDGES: aspirations and progress

We analyzed and assessed the relationship between Hitachi business activities and sustainability issues from the perspectives of both social impacts and business risks and opportunities. Based on our findings, we formulated the sustainability strategy PLEDGES under the management plan Inspire 2027. For each strategic pillar, we have defined our aspirations, KPIs and targets, and are working to advance sustainable management.

*1 All manufacturing sites and non-manufacturing sites in categories A and B are covered

*2 Per gross profit *3 All manufacturing sites

*4 Ambitious target of 80 points is set, which exceeds global competitors (base target is 75 points) *5 A program to support bottom-up idea proposals and implementation aimed at Hitachi Group

employees

*6 At or above the benchmark score established for similarly situated companies utilizing external institute’s (Ethisphere) ethical culture and compliance perceptions assessment *7 Number of recordable injuries per 200,000 work hours *8 Based on METI Cyber Security Management Guidelines created with reference to globally recognized standards (ISO/IEC 27000 series) and frameworks (NIST Cybersecurity Framework, etc.)

*9 Forecast of FY2025–FY2027 average

Strategic pillars Aspirations Included themes Decarbonization	KPIs (compared to FY2019) GHG emissions reduction rate at business sites (factories and offices)*1 Number of procurement partners that set GHG reduction plans and targets	FY2027 targets 75% 700 procurement partners	Linked to FY2025 results executive compensation 64% STI 428 procurement partners
Lead green transformation (GX) Planet globally to achieve	Reduction in GHG emissions intensity through products and services*2 (compared to FY2022)	40%	41%
decarbonization Circular economy	Application rate of environmental conscious design for new product development	100%	100%
	Waste landfill rate*3	2%	1.8%
	Effective utilization rate of plastic waste*3	92.5%	99.1%
Nature Positive	Reduction rate in water use per unit*3 (compared to FY2019)	8%	22%
Lead transformation with people	Reduction rate of water usage at manufacturing sites located in water-stressed areas	1%	(0.4)%
Human capital acquisition Leadership who can boldly take on societal and development,	Number of global leaders who realize growth strategy	1,000 people	550 people
issues and pave the way for a Individual leadership	Number of AI professional talents	50,000 people	39,000 people
brighter future	Employee growth mindset score	70 points	69.2 points LTI
Build a culture that praises Empowerment Employee engagement, learning and encourages	Employee engagement score	80 points*4	73.3 points STI/LTI
Organizational culture challenges and growth	Number of people who receive allotment of Restricted Stock Unit	1,500 people	1,800 people
Drive innovation by maximizing Diverse perspectives Inclusive workplace and capabilities and performance of	Number of people eligible for Employee Stock Purchase Plan globally	150,000 people	130,000 people
opportunities for all diverse talents Business ethics and	Realize innovative ideas through the new “Make a Difference!” program*5
compliance	Ethical culture and compliance perceptions assessment score	85 points*6	82.4 points
Health and safety	Total recordable injury frequency rate*7	0.1 or lower	0.15 STI
Governance Build a resilient foundation with	Number of fatal incidents	0	4
Quality and product safety	Executive participation rate (including Hitachi executives and business site senior management) in
safety and ethics as a priority	review sessions for product-related incidents (OCHIBO-HIROI)	100%	100%
Information security	Ensure and enhance information security by implementing measures based on the annual cybersecurity score Monitoring*8
AI governance	Implement risk management for applying AI to products, services and systems
Risk management	Strengthen process and talent of our global operation to foster effective risk management for growth	1.5 times
Sustainable procurement Engagement Build a sustainable value chain along with stakeholders	Number of procurement partners taking action on environment and human rights (compared to FY2024)	(6,000+procurement partners)	procurement STI partners
Human rights Accelerate value delivery to	Work to remediate the specific human rights risks identified
Sustainability for all Delivering value to society society and Hitachi’s sustainable	Avoided emissions from the use of products and service per year (FY2025–FY2027 average)	100 million tons/year	280 million tons/year*9
growth through PLEDGE	Revenues of products, services and solutions contributing to GX per year (FY2025–FY2027 average)	¥4.6 trillion/year	¥4.7 trillion/year*9

Sustainability Report

Overview of PLEDGES and KPI/targets/results for each strategy

HITACHI INTEGRATED REPORT 2026

Contents

01	Editorial Policy
03	Hitachi’s Value Creation Cycle
05	CEO Message
09	Key Financial Indicators
10	Executive Officers
11	Lumada—Hitachi’s Growth Model
12	HMAX—Recurring Digital Services
13	Energy
17	Connective Industries
15	Mobility
19	Digital Systems & Services
21	Research & Development Strategy
04	Hitachi’s Corporate Value Enhancement
02	Aiming to be the global leader in continuously
27	CHRO and CSuO Message
31	Chairman of the Board’s Message
23	CFO and CRMO Message
28	Sustainability Strategy PLEDGES
29	Human Capital Strategy
33	Corporate Governance
40	Past Mid-term Management Plans
41	10-Year Financial Data
42	5-Year ESG Data
43	Corporate Data and Stock Information

Human Capital Strategy

Global human capital management

Aligned with Inspire 2027 and guided by the belief that people are the primary source of value creation, we are strengthening and unifying the capabilities of our global workforce through strategic investments in human capital. By fostering a high-performing, connected and purpose-driven organization, we aim to create greater social value as the “One Hitachi.” To support this ambition, we advance our human capital strategy through three strategic pillars—Talent Management, Total Reward and the One HR Platform—ensuring close alignment between HR initiatives and business strategy.

With distinctive strengths across IT, OT and products, underpinned by a diverse business portfolio, we recognize that attracting, developing and retaining world-class talent is fundamental to sustaining our global competitiveness. To this end, we advance globally consistent Talent Management and Total Reward frameworks that balance market competitiveness and fairness with the flexibility to address regional needs and business characteristics. As we continue our transformation to a truly global enterprise, we are also driving cultural transformation and strengthening the systems, processes and digital platforms that enable seamless collaboration across regions and businesses. Through these efforts, we seek to fully leverage the collective strengths of the Hitachi Group, accelerate innovation and achieve sustainable growth.

Connection between 3 focus areas / 6 initiatives / HR programs and KPI progress

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Enhancing employee engagement

Employee engagement is an important driver of innovation, productivity and sustainable growth. We strengthen engagement through a range of people and organizational initiatives while measuring progress through the Hitachi Insights employee engagement survey. In fiscal 2025, the survey response rate reached 90.5%, and the engagement score improved from 71.5 to 73.3.

In addition to the annual survey, we gather employee feedback through channels such as town hall meetings and internal social platforms. These insights are reflected in management decisions and organizational improvement initiatives. Beginning in fiscal 2026, we will further enhance this approach by collecting feedback across key employee milestones and applying AI-powered analytics to identify priorities and accelerate action.

Through this continuous cycle of listening to employees, understanding insights and acting on them, we seek to strengthen employee engagement and achieve engagement scores of 75 as the base target and 80 as the ambitious target in fiscal 2027, contributing to sustainable corporate value creation.

Talent management

Hitachi is strengthening its global talent management approach to identify, develop and deploy talent in line with business needs. We support career growth and mobility, build critical capabilities and strengthen succession planning for key roles.

We are also developing the next generation of leaders through targeted development, stretch assignments, Individual Development Plans and executive sponsorship.

Leadership development

The New Hitachi’s Global Leadership Development program accelerates the readiness of 550 next-generation leaders, 60% of whom are newly selected. Drawn from across our global businesses and regions, the cohort brings diverse perspectives to the leadership pipeline. It combines personalized executive development with a structured group program that builds shared leadership capabilities and a common leadership language* across Hitachi. *A framework of leadership values and behaviors

One HR Platform

As a core pillar of our human capital strategy, the One HR Platform globally integrates people data, processes and experiences across the organization. One HR platform enables greater transparency of our workforce capabilities and supports data-driven decision-making, allowing us to manage talent more effectively in line with strategic priorities. Our common digital HR foundation strengthens global consistency, enhances organizational agility, and enables locally relevant execution across diverse markets and businesses. Approximately 275,000 employees have been onboarded on our digital HR platform so far.

Total reward

Our compensation program is designed around the principles of transparency, fairness and market competitiveness. We strive to create a positive cycle between employee growth and corporate value creation by aligning rewards more closely with employees’ performance, based on roles and responsibilities.

Restricted Stock Unit (RSU) for senior leaders

We began granting Restricted Stock Units (RSU) for approximately 1,800 senior leaders across approximately 40 countries, targeting those who are two to three levels below BU CEOs or functional leaders. We will further broaden eligibility for the program, which aligns leaders’ performance with the creation of medium- to long-term corporate value.

Employee Stock Purchasing Plan (ESPP)

We introduced the Employee Stock Purchase Plan (ESPP) to support employee asset building and strengthen employee ownership. Since fiscal 2026, we have accelerated the global rollout, launching the program in 11 countries. We will continue expanding participation with the target of making the program available to approximately 150,000 employees world-wide.

*Ambitious target of 80 points is set, which exceeds global competitors (base target is 75 points)

Engagement score trends and target (global average)*

Toward a future Hitachi organization enabled by AI agents

We view AI as an amplifier of human potential, enabling employees to innovate more effectively by AI. In fiscal 2025, we strengthened AI readiness through AI literacy training to approx. 160,000 employees, with more than 83% completing the program. We also launched a pilot involving approximately 2,000 employees to assess AI’s impact on work, identify skill gaps and develop our AI agent adoption strategy. In fiscal 2026, we will begin pilots within HR to redesign work and roles and establish a foundation for scaling adoption across the Hitachi Group.

PSU* RSU

Executives

Ownership directly linked to results for corporate value creation

Executives and Senior Leaders

Foundation of the stock-based compensation program

for senior leaders and above

Employees (across the global Group) Incentivizing ownership for corporate value

Fostering ownership for enhancing corporate value

Global leadership development

PLEDGES

Specific initiatives of HR drivers for growth

* PSU: performance-linked restricted Stock Units

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

Four Core Business Strategies

of Growth

Sustainability Strategy 27 CHRO and CSuO Message 23 CFO and CRMO Message

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

・収益性の高いデジタルサービス事業の拡大 Hitachi’s Corporate Value Enhancement Formula (P. 04)

Cost of Capital

Governance

Chairman of the Board’s Message

Commitment to the continuous evolution of governance and my vision as the new Chairman

In June 2026, I was appointed Chairman of the Board of Directors. Hitachi is currently advancing its transformation to achieve sustainable growth. However, our business environment is changing rapidly, driven by accelerating technological innovations particularly in AI—as well as rising geopolitical risks. The path toward Hitachi’s goal of becoming a global leader is by no means straightforward. Amidst such uncertainty, I am acutely aware of the weight of my responsibility as Chairman to guide Hitachi’s growth and enhance its corporate value.

In my previous career at Japan’s Ministry of Economy, Trade and Industry (METI), I played a role in shaping growth strategies for the Japanese economy and helped introduce Japan’s Corporate

Hitachi views the expansion of long-term, overall returns to shareholders and investors as an important management objective. To enhance corporate value, we maintain good relationships with diverse stakeholders and are establishing a framework to foster sustainable value creation through ongoing dialogue. In terms of corporate governance, we separate oversight from execution, supporting swift business execution and underpinning highly transparent management.

Governance Code in 2015. The core challenge we sought to address was how to unlock the inherent earning power of Japanese companies. We recognized that sustainable corporate growth requires a structure that enables resolute decision-making, and that making effective use of independent directors is essential for bringing external perspectives into corporate management.

Following my tenure at METI, I had the privilege of joining Hitachi as an independent director four years ago. Since then, from a governance perspective, I have closely overseen and supported Hitachi’s transformation from a Japanese company into a globally competitive growth company and its pursuit of sustainable growth. Engaging deeply with important management challenges through candid and rigorous dialogue with the executive team has been an exceptionally stimulating and rewarding experience.

Apr 1981 Joined Ministry of International Trade and Industry of Japan Jul 2010 Director-General of the Industrial Science and Technology Policy and Environment Bureau, METI Sep 2012 Director-General of the Manufacturing Industries Bureau, METI

Jun 2013 Director-General of the Economic and Industrial Policy Bureau, METI Jul 2015 Vice-Minister of Economy, Trade and Industry of Japan Aug 2017 Special Advisor to the Cabinet of Japan (retired in June 2018) Jun 2022 Director, Hitachi, Ltd. (currently in office)

Biography

Toward a Board of Directors that oversees continuous corporate transformation and encourages appropriate risk-taking

Ikuro Sugawara Chairman of the Board and Nominating Committee

Independent Directors 8 people 72.7%

Ratio of independent

directors 2 to less than

4 years 1 person

4 to less than 6 years 3 people non-Japanese 4 people 36.4%

less than 2 years 4 people

Germany 1 person

Morocco 1 person

Canada 1 person

Woman 3 people 27.3%

Tenure of independent directors Average 2.5 years

Independence Diversity

Ratio of non-Japanese and woman directors

Japan 7 people

India 1 person

Country of origin

Board of Directors composition (as of June 2026)

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Governance

Financial Strategy and Risk Management

13 Energy

31 Chairman of the Board’s Message

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

In a business environment that continues to evolve, there is no final, perfected form of governance. Taking the baton from my predecessor, I am committed to further deepening our board’s effectiveness and encouraging the executive team to take bold initiatives as we drive Hitachi toward its next stage of growth.

Governance effectiveness driven by diverse perspectives and constructive tension

The effectiveness of Hitachi’s current governance structure is underpinned by two major characteristics.

First, our Board’s deliberations deeply reflect a wide range of diverse perspectives. Currently, eight of our 11 Board members are independent directors, four of whom are non-Japanese nationals. Capitalizing on these diverse backgrounds, each director brings invaluable global insights, extensive management experience and specialized expertise. Leveraging these collective strengths, they rigorously assess proposals from the executive team through robust discussions.

Second, Hitachi fully leverages its structure as a Company with Nominating Committee, etc., utilizing it as a forum to discuss our broad strategic direction with the goal of enhancing corporate value over the medium to long term.

As the executive team focuses on achieving annual targets, mediumto long-term decision-making risks being overlooked. Rather than simply endorsing executive proposals or imposing our past experiences, we consistently pose critical questions from a mediumto long-term perspective. This dialogue functions as a reliable check on the executive team, fostering constructive tension. Ensuring the quality and effectiveness of these discussions are the activities of our three statutory committees: the Nominating Committee, the Compensation Committee and the Audit Committee.

The Nominating Committee engages in in-depth, strategic discussions with the executive team, extending beyond selecting the next CEO to cultivating future leaders for generations to come. Independent directors share their expertise and mentor promising

leaders, directly supporting their growth and playing a pivotal role in shaping the Company’s future management structure.

The Compensation Committee consistently prompts the executive team to review and refine compensation systems to stay competitive globally. This includes establishing frameworks aligned with roles and responsibilities as job-based employment progresses, as well as expanding stock-based compensation.

The Audit Committee serves as a vital foundation supporting the Board of Directors. Four of its five members—excluding the standing Audit Committee member—are independent directors, ensuring independent and objective oversight. This structure is rendered truly effective by an environment where the executive team openly shares internal information without reservation, enabling candid dialogue. By scrutinizing vast amounts of information shared in a timely manner via digital tools, as well as actively conducting site visits and interviews globally, members build a deep understanding that forms the basis for substantive, high-level discussions.

In addition, under a culture that places the highest priority on safety, quality and compliance, the executive team views findings identified through the tripartite audit—a close collaboration among the Audit Committee, the internal audit function, and the independent auditors—as opportunities for operational improvement and proactively addresses them. As directors, we also remain vigilant regarding significant concerns in executive decision-making. When deemed necessary, even if it entails a temporary impact on business operations, we strongly request plan revisions or cancellations, ensuring that our preventive governance functions effectively.

Together, transparent information sharing by the executive team, the Audit Committee’s deep operational understanding and the checks and balances provided by the tripartite audit underpin the effectiveness of the Audit Committee, ultimately elevating the quality of deliberations across the entire Board.

Supporting the executive team’s bold challenges toward sustainable value creation

Hitachi is currently in the second year of its Inspire 2027 Management Plan. First-year performance exceeded initial targets, making an exceptionally strong start. However, the business environment is changing far faster than assumed when the plan was formulated. In such an uncertain era, simply executing the original plan is merely a baseline requirement. We share a strong sense of urgency with the executive team that if we misjudge the essence of this changing landscape and fail to seed future growth today, it will be too late by the time the impacts manifest in two or three years.

In particular, AI is advancing at a remarkable pace, and simply keeping pace with its evolution will not be enough to gain and sustain a competitive advantage. However, the current wave of AI expanding from the digital domain into the physical world presents a distinct strength for Hitachi. By combining AI with expertise cultivated over many years in IT, OT and products, Hitachi is uniquely positioned as an integrator—one that connects third-party assets—to lead the way in enhancing the value of social infrastructure.

Furthermore, to mitigate the risk of asset obsolescence, it is essential to continuously optimize the business portfolio and further concentrate management resources on core businesses. Through disciplined risk-taking, Hitachi must relentlessly pursue domains where only we can deliver value, thereby achieving sustainable growth.

Effective risk management requires us to recognize the risk of inaction—standing by silently—as a major threat, while facing change head-on and proactively embracing future challenges. The Board looks beyond short-term business performance, rigorously evaluating from an independent, long-term perspective whether strategic measures are fully deployed to enable swift, proactive executive decisions. This, we believe, is the fundamental purpose of governance: ensuring Hitachi’s sustainable development and underpinning robust management.

This risk management perspective is equally crucial in executing disciplined capital allocation and striking the optimal balance between growth investment and shareholder returns. As directors representing the interests of shareholders who seek long-term corporate value enhancement, we approach deliberations on investments and shareholder returns with a strong sense of responsibility. From the standpoint of investment discipline, we oversee execution to ensure that long-term growth is not sacrificed for short-term gains, while maintaining prudent risk management to preserve financial soundness.

As society and technology evolve, Hitachi must incorporate the expectations of diverse stakeholders into its management and embrace continuous transformation to achieve sustainable value creation. Through discussions based on diverse perspectives, the Board of Directors will discern essential risks while supporting the executive team’s bold challenges toward both corporate growth and enhancing social value.

Regular meeting of the Board of Directors (India)

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Board of Directors (as of June 24, 2026)

Ikuro Sugawara (69)

Share ownership: 5,700 shares Term of office as Independent Director: 4 years Country of origin: Japan Attendance rate at Board of Directors meetings: 100% Attendance rate at Nominating Committee meetings : 100% Attendance rate at Audit Committee meetings: 100%

Director,

Chairman of the Board

N A C

Share ownership: 400 shares Term of office as Independent Director: 1 year Country of origin: Japan Attendance rate at Board of Directors meetings: 100% Attendance rate at Audit Committee meetings: 100% Attendance rate at Compensation Committee meetings: 100%

Independent directors◎

Directors

Biographical Details

Ilham Kadri (57) Newly appointed

Share ownership: 0 shares Term of office as Independent Director: — Country of origin: Morocco

N A C

Helmuth Ludwig

(63)

Share ownership: 28,500 shares Term of office as Independent Director: 5 years and 11 months Country of origin: Germany Attendance rate at Board of Directors meetings: 100% Attendance rate at Audit Committee meetings: 100%

N A C

Share ownership: 300 shares Term of office as Independent Director: 2 years Country of origin: Canada Attendance rate at Board of Directors meetings: 100%

Share ownership: 4,100 shares Term of office as Independent Director: 5 years and 11 months Country of origin: India Attendance rate at Board of Directors meetings: 100%

Share ownership: 450,000 shares Country of origin: Japan Attendance rate at Board of Directors meetings: 100% Attendance rate at Compensation Committee meetings: 100%

Share ownership: 134,300 shares Country of origin: Japan Attendance rate at Board of Directors meetings: 100% Attendance rate at Audit Committee meetings: 100%

Toshiaki Higashihara

(71)

Share ownership: 1,272,700 shares Country of origin: Japan Attendance rate at Board of Directors meetings: 100% Attendance rate at Nominating Committee meetings: 100%

N A C

Eriko Sakurai

(65)

Share ownership: 200 shares Term of office as Independent Director: 1 year Country of origin: Japan Attendance rate at Board of Directors meetings: 100% Attendance rate at Nominating Committee meetings: 100%

N A

Share ownership: 0 shares Term of office as Independent Director: — Country of origin: Japan

^N : Nominating Committee Member ^A

: Audit Committee Member C : Compensation Committee Member : Chairperson

◎ Independent directors are directors who fulfill the qualification requirements to be outside directors as stipulated in the Companies Act and also meet independence criteria defined by Hitachi and stipulated by Japanese stock exchanges where Hitachi is listed. *The attendance rates of Board of Directors meetings and each committee meeting given are for fiscal 2025.

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

13 Energy

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

33 Corporate Governance

Data

Directors’ Skills Matrix

No	Name	Major experiences and insights
				Core skills			Professional skills
						accounting	Legal affairs Digital
1	Ikuro Sugawara	Mr. Sugawara has rich experience and insight from leadership positions in government agencies such as the
		Ministry of Economy, Trade and Industry, as well as serving as an independent director for global companies.	〇	〇	〇			〇
2	Ilham Kadri
			〇	〇	〇			〇	〇
3	Takashi Nishijima
			〇	〇	〇		〇		〇
4	Masahiko Chino	Mr. Chino has rich experience and insight in global corporate management as well as accounting,
		auditing, and consulting as Co-Chairman of KPMG Japan.	〇	〇	〇	〇
5	Helmuth Ludwig	Mr. Ludwig has rich experience and insight in the area of global corporate management and the digital
		business, as CIO at Siemens, as well as teaching experience at educational institutions.	〇	〇	〇		〇	〇
6	Eriko Sakurai
			〇	〇	〇				〇
7	Isabelle Deschamps
			〇	〇	〇		〇		〇
8	Ravi Venkatesan
			〇	〇	〇		〇	〇
9	Toshiaki Higashihara
			〇	〇	〇		〇	〇	〇
10	Mitsuaki Nishiyama
			〇	〇	〇	〇
11	Toshiaki Tokunaga	Mr. Tokunaga has rich experience and insight in global corporate management and sustainable
		management as CEO, etc. at Hitachi.	〇	〇	〇		〇		〇

*1 WBCSD: World Business Council for Sustainable Development *2 ICC: International Chamber of Commerce *3 Cefic: The European Chemical Industry Council *4 OT: Operational Technology *5 DX: Digital Transformation

The experiences and insights, and skills of each director are as follows.

Risk management Knowledge of the risk assessment and
Finance and accounting	Leadership experience such as CFO or professional knowledge and practical experience in accounting and audits
Legal affairs	Expertise and practical experience in the legal affairs that are essential for conducting global business and
Digital	Practical experience in the digital business that is vital for promoting DX in the Social Innovation Business
Sustainability	Expertise and practical experience of sustainability through corporate management

Definition

HITACHI INTEGRATED REPORT 2026

Contents

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Hitachi’s Corporate Governance Framework and Features (as of June 2026)

POINT 1 — Independence of the Board of Directors

A structure with a majority of independent directors, including international directors

The Board of Directors consists of 11 members: eight independent directors, two directors who concurrently serve as executive officers and one non-executive director. The Board is chaired by an independent director. Furthermore, by separating management oversight from execution, we have established a structure that enables the Board to fully exercise its supervisory functions.

POINT 2 — Transparency in management

Robust governance structure as a company with Nominating Committee, etc.

We have established three committees—Nomination, Audit and Compensation—each chaired by an independent director. This structure is designed to strengthen the supervisory function of the Board of Directors while ensuring that discussions and reporting within the committees are conducted effectively.

POINT 3 — Enhanced collaboration through tripartite auditing

Hitachi’s Audit Committee and internal audit sections collaborate with third-party accounting auditors to strengthen the Tripartite Auditing aimed at increasing the effectiveness of internal controls.

Providing information to independent directors

To enhance the effectiveness of the Board of Directors, Hitachi uses a dedicated information sharing tool to share materials for the Board of Directors and each committee, and also to share important business operation information from the executive departments with directors as needed. Moreover, Hitachi organizes individual meetings when necessary so that we can provide information in a timely and accurate manner. In principle, the Board of Directors meets once a year in a country with close ties to the business. In December 2025, a Board of Directors meeting was held in New Delhi, India. At the meeting in New Delhi, discussions were held on business strategies for the India region. In addition, a lecture by a local expert and visits to local subsidiaries were conducted.

In addition to this, Hitachi provides independent directors with ample opportunities to understand the business and share information through briefings on business details, visits to Group locations and the direct provision of information from Executive Officers. In fiscal 2025, Hitachi endeavored to deepen independent directors’ understanding of the businesses through activities such as attending the opening ceremony of the Hitachi Rail Hagerstown Factory (U.S.), visiting the Hitachi Rail CBTC Solutions Headquarters (Canada), participating in the Hitachi Social Innovation Forum, Hitachi Digital Summit, internal business conferences and research presentations held at research laboratories. We also provided opportunities for them to engage in dialogue with senior management and front-line employees. Audit Committee members also conducted onsite audits of Hitachi Rail (Italy), the Nuclear Energy BU (Japan) and Hitachi Power Solutions (Japan).

To better understand the Hitachi Group’s corporate governance structure and its key features, please also refer to the video ‘Hitachi’s corporate governance and tripartite auditing’

Visit to a nuclear power plant (Japan)

Corporate Governance Report

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Director and Executive Officer Compensation

Key principles of executive compensation

Compensation structure

Key principles: Incentive plan		Aim for growth, profitability Accelerate sustainable Emphasize alignment with Ensure global competitiveness in and cash generation management shareholder value business and compensation
growth of corporate value and business performance Corporate value growth through pay-for-performance	1	Alignment with the management plan encourage executives to achieve them. Establishment of a compensation program and a performance evaluation program that fosters a growth mindset and commensurate compensation levels.
Linkage with the Medium- to management long-term plan growth	3	Setting indicators to promote sustainable management implementation. Expansion of stock compensation that rewards growth in corporate value over the medium to long term guidelines.
Attract and retain key talent	5	Competitive compensation levels with a global perspective
Transparency, objectivity	6	Compensation benchmarking with objectivity and transparency Transparency and objectivity through
and fairness	7	enhanced compensation disclosure and shareholder engagement

(1) Directors

Compensation for directors is made up of basic compensation as fixed pay and stock-based compensation. The ratio for the base amount of basic compensation to stock-based compensation is 2.5-to-1. The methods for determining each type of compensation are as follows.

A. Basic remuneration

The amount of basic remuneration is decided by adjusting the base amount to reflect full-time or part-time status, committee membership and position, meetings attended and other factors.

B. Stock compensation

Restricted stock compensation units (RSU) are granted to serve as an incentive to provide management oversight and advice with the mediumto long-term enhancement of corporate value in mind. After three years have passed, Hitachi provides an amount equivalent to the granted units in the form of common stock or cash.

If it is found that a director has engaged in misconduct during his/her term of office, compensation for Directors that has already been paid shall be returned to the Company (clawback policy). A director concurrently serving as an executive officer is not paid compensation as a director.

Alignment of increased corporate value with employee compensation

Hitachi has also introduced mechanisms for employee compensation to link individuals’ goals with those of the Company and determine compensation, and the management goals set out in Inspire 2027 are used as one of the evaluation metrics when determining the compensation of individual employees.

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

Who We Are

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

(2) Executive Officers

Compensation for Executive Officers consists of basic compensation as fixed pay and short-term incentive compensation and medium- and long-term incentive compensation as variable pay. The ratio of base amounts for each form of compensation is determined to ensure the enhancement of corporate value through global business growth, referencing ratios for executive compensation at leading global companies, including those in Europe and the United States. In the case of Hitachi’s President & CEO, this ratio is 1 : 1.5 : 3. In addition, ratios are set so that the higher the rank of an executive officer position, the greater the variable compensation as a percentage of total compensation. The details of compensation are disclosed in the Compensation to Directors and Executive Officers, etc. section on page 123 of Hitachi’s Annual Securities Report.

A. Basic remuneration

The amount of basic remuneration is decided by adjusting a basic amount set in accordance with the relevant position to reflect the results of an assessment.

B. Short-term incentive compensation (STI)

The amount of short-term incentive compensation is decided within the range of 0 to 200% of a basic amount set according to the relevant position, by adjusting that amount to reflect financial results and individual performance.

C. Medium- and long-term incentive compensation (LTI)

The target amount (medium- and long-term incentive compensation target (LTI target)) is decided based on the positions of Executive Officers in order to propel management from a medium- to long-term perspective and to provide incentives to bring about a sustainable increase in corporate value by further promoting shared values among senior management and shareholders through the holding of shares from their term of office. In order to further clarify its commitment to enhancing corporate value over the long term, in March 2026, the Company revised its executive stock compensation program. Under a globally unified program, medium- and long-term incentive compensation consisting of restricted stock unit (RSU) awards and performance-linked stock unit (PSU) awards is granted. Details are available on page 125 of the Annual Securities Report.

If it is found that an executive officer has engaged in misconduct during his/her term of office, compensation for Executive Officers that has already been paid shall be returned to the Company (clawback policy).

Shareholding guidelines for Executive Officers are designed to further enhance the effectiveness of sharing value with shareholders through shareholding and to promote continued shareholding. Specifically, the guidelines set a target whereby Executive Officers are expected to acquire, within four years of appointment, and continuously hold during their term of office, shares equivalent in value to an amount calculated by multiplying their basic remuneration by coefficients determined according to their respective positions.

Key aspects of compensation to Executive Officers

1 Strengthening the link with the management plan • Adopt the key indicators set forth in Inspire 2027 as KPIs (STI, LTI)

2 Strengthening the link with corporate value enhancement

• Set a high ratio of stock price condition compensation (LTI) • Establish a global competitive comparison (LTI)

3 Further evolving sustainable management

• Separate sustainability evaluations and set at 20% (STI) • Some KPIs and targets of the sustainability strategy PLEDGES are incorporated into executive compensation evaluation to encourage their execution (STI, LTI)

PLEDGES	Link to
strategic pillars Planet	FY2027 KPIs/targets executive compensation GHG emissions reduction rate at business sites
	75% STI (factories and offices) (compared to FY2019)
Leadership Employee growth
mindset score	70 points LTI
Empowerment Employee engagement
score	80 points* STI/LTI Total recordable injury
frequency rate (TRIFR) Governance	0.1 or lower STI
Number of fatal incidents Engagement 2024)	0 Number of procurement 1.5 times partners taking action on (6,000+ environment and human STI procurement rights (compared to FY partners)

*Ambitious target of 80 points is set, which exceeds that of global competitors (baseline target is 75 points)

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Administrative Performance of the Board of Directors

The Board of Directors approves the basic management policy for the Hitachi Group and supervises the execution of the duties of executive officers and directors in order to sustainably enhance corporate value and shareholders’ common interests. The basic management policy includes the management plan and annual budget planning. The Board of Directors focuses on strategic issues related to the basic management policy, as well as other items to be resolved that are provided in laws, regulations, the Articles of Incorporation and the Board of Directors Regulations.

In fiscal 2025, by approving Inspire 2027 management plan and receiving progress reports on two occasions at board meetings, we held many discussions on the ideal state the Hitachi Group should aim for in the future and the business strategies that would make that possible. We also widely discussed and deliberated on risk management pertaining to generative AI, and responses to geopolitical risks in light of recent world affairs.

Aside from these strategic discussions on basic management policies and risk-related discussions, recognition is shared between the supervisory and executive sides of management by having the President & CEO report to the Board of Directors on important executive topics, including key management issues discussed in the Senior Executive Committee, an advisory body to the President & CEO, and promoting discussion on such topics. To facilitate more lively discussion on these topics, more time is allotted to exchanging opinions than explaining each topic.

	Meetings held in FY2025
Committee	10 times	• Decided the details of proposals for the election of directors
Committee	7 times
Committee	12 times

Activities of the three committees

Meetings

Meetings held 10 (9) times

Average number of agenda items 7.3 (8.0) per meeting

Average meeting length 160.2 (170.0) minutes

Note: Figures exclude those from the Extraordinary Meeting of the Board of Directors held on

October 9, 2025.

Topics Main topics discussed CEO report Progress of capital policy-related matters, response to investors, etc. Inspire 2027 Resolution to approve Inspire 2027: 1 meeting Progress reports: 2 meetings

Settlement of accounts

Financial results, business environment,

shareholder returns, etc.

Risk management Status of compliance initiatives, improvements to Group governance and M&A processes, AI risk management, enterprise risk management (ERM), monitoring of investment and financing projects,

etc.

Strategy, etc.

Research and development strategy, regional strategy, human capital strategy, sustainability strategy, individual M&A transactions

FY2025 time spent and ratios of explanations and discussions of important topics (results up to March 31, 2026)

Board of Directors Meeting and major agendas in FY2025

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

CEO Appointment and Dismissal, and Succession Plan

Analysis and Evaluation of the Effectiveness of the Board of Directors

As stipulated in our Corporate Governance Guidelines, our basic policy concerning the CEO requires that individuals serving in the position of CEO have extensive experience and achievements in the field of company management. They must also be considered optimally suited for conducting management aimed at achieving Hitachi’s goals of continuously raising its corporate value and further serving the common interests of its shareholders. Decisions regarding the appointment or dismissal of the CEO shall be made based on prior deliberations and proposals by the Nominating Committee. And after a preliminary report to the Nominating Committee, Hitachi’s Board of Directors decides upon the appointment and dismissal of executive officers with the goal of constructing an optimal business execution system for management.

Regarding our CEO succession plan, as the speed of change in the management environment accelerates, we are striving to build a system that enables us to appropriately and promptly secure and develop (both internally and globally) necessary management personnel who will provide leadership that will allow us to realize our growth strategies. Accordingly, we are also concentrating on providing training for selected employees while targeting the early development of candidates for future management positions. Through this, participants discuss what is necessary for Hitachi’s future growth and have opportunities to make recommendations directly to management, fostering next-generation leaders who can act with confidence and determination.

The Company evaluates the effectiveness of its Board of Directors each year in an ongoing effort to maintain and improve its functions. In particular, beginning in fiscal 2025, to ensure the objectivity of the evaluation and incorporate multifaceted perspectives, evaluations by Executive Officers and interviews conducted by a third-party organization have been introduced.

● Board role
● Board composition (diversity of the Board, the number and proportion of independent directors, etc.)
● Board operation (relation between the Board and Executive Officers, appropriateness of agenda setting, time allocation,
● Three committees’ activities (composition, roles, report to the Board, etc.)
● Information to the Board (provision of information such as the Board materials and business information, etc.)
● Contribution of the Board members themselves (understanding of the business and the Hitachi Group Identity, utilization of
● Contribution by the Board (role of Chairperson, contribution to the succession plan of CEO, external communication, etc.)
● Contribution by the Board
● Board composition
● Relationship between the Board and Executive Officers
● To gain a deeper understanding of the directors’ self-assessment results, an interview with independent directors was
● Independent directors and non-executive directors held a meeting and discussed the effectiveness of the Board of
● The Board analyzed and evaluated its effectiveness as a whole and confirmed the policy on approaches to further enhance the

Enhance corporate governance and further improve the effectiveness of the Board Enhance the Board support system and
● The Board of Directors will continue to hold more vigorous discussions regarding management policies,
● In addition to discussions at Board of Directors meetings, by setting up meetings for executive officers
● Independent and non-executive directors will share information on the selection of CEO and executive
● Increase opportunities for Directors to further
● Further improve the structure and contents of materials

FY2025 evaluation process

Future initiatives

Evaluation results (overall evaluation in FY2025)

The overall effectiveness of the Board of Directors is ensured by the following strengths in particular:
1. A healthy balance between oversight and execution of management, built on transparency and trust
2. A diverse Board composition designed with a global perspective
3. A Board culture that enables open, candid, and substantive discussion 4. Effective facilitation of the meetings and smooth operations

The succession planning process

● Executive side
● Provide selective training to personnel
● Implement tough assignments
● Provide opportunities to give
● Change selected members every year

●Oversight side

● Narrow down candidates through regular discussions and evaluations ● Propose candidates to the Board of

Directors Decision made by

Board of Directors

The Nominating Committee Lead

Propose

Narrow down CEO candidates

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

Past Mid-term Management Plans

Data

1 Launched the digital business platform and achieved growth ・Launched the Lumada Solution Hub and the Lumada Alliance

Program

・Expanded the Lumada business revenues to 1.6 trillion yen 2 Enhanced efforts toward digital and environmental growth

・2019: Acquired JR Automation

・2020: Made Hitachi High-Tech a wholly owned subsidiary/established

Hitachi ABB Power Grids (now Hitachi Energy) ・2021: Established Hitachi Astemo (now Astemo)/acquired GlobalLogic/transferred the diagnostic imaging-related business

・Participated in COP26 as a principal partner

3 Reinforced and improved the business foundation by resolving

management issues

・Made progress in reviewing the capital policies of listed subsidiaries

Divestiture of Hitachi Chemical and Hitachi Metals*1 - Sale of a part of shares in Hitachi Construction Machinery and

Hitachi Transport System*1 ・Responded to management issues

Settled with Mitsubishi Heavy Industries on South Africa projects - Withdrew business operations on the United Kingdom nuclear

power stations construction project

・Promoted diversity, increased digital talent and enhanced risk

management *1 Completed in FY2022 1 Changed mode to organic growth

・Increase in orders and revenue growth driven by DX and GX ・Expanded the Lumada business revenues to 3.0 trillion yen and

driving improved profit margins

・Stabilized net income through risk management

・Increased EPS growth rate

・Deconsolidation of Hitachi Astemo (now Astemo) 2 Established cash flow and ROIC oriented management

・Expanded cash generation capability

Core FCF (3-year cumulative) 0.9 trillion yen → 1.8 trillion yen
CF conversion 50% → 83% ・Improved ROIC 7.7% → 10.9% 3 Increased shareholder returns

・Total share buybacks (3-year cumulative) 500 billion yen ・Increased total shareholder return ratio (against core FCF, 3-year

cumulative) from 35% to 54%

4 Strengthened sustainable management including evolving

governance

・Aligned executive compensation with shareholder value - Revised director and executive officer compensation system (incorporated TSR growth against global peers into a reward metric)

・Enhanced digital talent: 107,000 / Engagement score: 71.5

1 Promoted the Social Innovation Business on a global basis by strengthening front-line functions ・Expanded service businesses through the use of

digitalizations

・Strengthened digital capabilities through the

acquisition of Pentaho 2 Reviewed non-core businesses

・Thermal power business: Established a jointventure firm with Mitsubishi Heavy Industries ・Air-conditioning business: Established a jointventure firm with Johnson Controls

・Batteries business: Relisted Hitachi Maxell, drew down Hitachi’s stake in the Company

3 Promoted globalization

・Relocated the railway systems business headquarters to the United Kingdom ・Introduced Global Performance Management aimed at enhancing the use of global human capital 1 Transitioned away from a product-based company system to a three-level structure comprising front-line, platform and product tiers ・Accelerated decision-making with the introduction of a business unit

system

2 Strengthened the global front-line

・Bolstered global front-line operations through acquisitions (Ansaldo STS [now Hitachi Rail STS], Sullair [now Hitachi Global Air Power])

3 Expanded the digital solutions business with Lumada

・Launched Lumada

・Established Hitachi Vantara to deliver digital solutions ・Lumada business revenues grew to 1 trillion yen

4 Executed ongoing business reviews

・Divestiture and deconsolidation of listed subsidiaries (Divestiture of Hitachi Koki and Clarion, sold a part of shares in Hitachi Transport

System, Hitachi Capital and Hitachi Kokusai Electric) ・Reduced/withdrew from low-profit businesses such as the information and telecommunications equipment business and the

overseas EPC business

Mid-term management plan 2012 (FY2010–2012) Rebuilding management

Mid-term management plan 2021 (FY2019–2021) Mid-term management plan 2024 (FY2022–2024) ・Optimized and consolidated manufacturing sites

Mid-term management plan 2015 (FY2013–2015) Mid-term management plan 2018 (FY2016–2018)

Recovery

Realized social innovation with digitalization

Built a platform for global growth Mode change to organic growth

Moved to next stage aimed at sustained growth

Building a foundation for growth The swapping out of businesses Strengthening the Social Innovation Business Leveraging digital technologies

Financial indicators

MMP 2024 targets (as announced in April 2023)

FY2024 results

Revenues CAGR (FY2021–2024)

5–7% 14%

Adj. EBITA

margin*2 12% 11.7%

EPS growth rate CAGR*3 (FY2021–2024)

10–14% 18%

Core FCF (3-year cumulative) (FY2022–2024)

1.2 trillion yen

1.8 trillion yen

ROIC 10% 10.9% *2 Adj. EBITA (old definition): Adj. operating income plus acquisition-related amortization *3 Impact of one-time factors is excluded from

net income in FY2021

Management Plan

1 Created a product-based company system clarifying responsibilities and authority ・Clarified responsibility and authority through introduction of an in-house company system ・Consolidated business into six groups, focused on growth fields under an integrated system of operations and accelerated management 2 Rebuilt/withdrew from low-profit businesses ・Automotive systems business: Rebuilt through

structural reform

・Flat-panel TV business: Withdrew from in-house

production

・HDD business: Divestiture 3 Strengthened cost competitiveness

・Started the Hitachi Smart Transformation Project

for cost structure reform

・Expanded centralized purchasing and global

procurement

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

40 Past Mid-term Management Plans

10-Year Financial Data

Fiscal year (IFRS)	FY2016	FY2017	FY2018	FY2019	Annual Securities Report FY2020	FY2021	FY2022	FY2023	FY2024	million yen FY2025
Revenues	9,162,264	9,368,614	9,480,619	8,767,263	8,729,196	10,264,602	10,881,150	9,728,716	9,783,370	10,586,781
Adjusted operating income	587,309	714,630	754,976	661,883	495,180	738,236	748,144	755,816	971,606	1,199,275
Adjusted EBITA (updated definition)									1,083,525	1,311,436
Adjusted EBITA (old definition)					609,107	855,380	884,606	918,184	1,141,845
EBIT	475,182	644,257	513,906	183,614	850,287	850,951	845,632	857,942	977,607	1,274,049
EBITDA			885,318	619,001	1,343,067	1,392,840	1,373,468	1,310,702	1,409,337	1,732,295
Net income attributable to Hitachi, Ltd. stockholders	231,261	362,988	222,546	87,596	501,613	583,470	649,124	589,896	615,724	802,368
Net cash provided by (used in) operating activities	629,582	727,168	610,025	560,920	793,128	729,943	827,045	956,612	1,172,240	1,668,061
Net cash provided by (used in) investing activities	(337,955)	(474,328)	(162,872)	(525,826)	(458,840)	(1,048,866)	151,063	(131,543)	(573,650)	(341,553)
Net cash provided by (used in) financing activities	(209,536)	(321,454)	(320,426)	2,837	(184,838)	202,739	(1,142,966)	(1,024,907)	(424,122)	(971,037)
Core free cash flows	100,215	283,593	136,079	135,441	419,848	290,082	416,460	571,467	780,592	1,170,232
Capital expenditures (CF basis)	417,150	440,312	472,249	421,276	372,945	439,861	410,585	385,145	391,648	497,829
Depreciation	302,757	265,413	271,682	342,450	345,201	382,922	358,412	280,306	238,784	251,154
Amortization	112,426	99,019	96,362	90,708	146,462	157,330	167,898	171,234	192,750	206,819
R&D expenditures	323,963	332,920	323,145	293,799	293,571	317,383	316,280	290,145	259,431	290,399
Total assets	9,663,917	10,106,603	9,626,592	9,930,081	11,852,853	13,887,502	12,501,414	12,221,284	13,284,813	15,041,246
Total Hitachi, Ltd. stockholders’ equity	2,967,085	3,278,024	3,262,603	3,159,986	3,525,502	4,341,836	4,942,854	5,703,705	5,847,091	6,568,369
Interest-bearing debt	1,176,603	1,050,294	1,004,771	1,485,042	2,397,356	3,126,712	2,213,348	1,180,022	1,206,116	1,009,037
Adjusted EBITA margin (updated definition) (%)									11.1	12.4
Adjusted EBITA margin (old definition) (%)					7.0	8.3	8.1	9.4	11.7
basic (EPS) (yen)	47.90	75.19	46.09	18.14	103.86	120.75	136.91	126.91	133.85	176.76
Core free cash flows per share, basic (CFPS) (yen)	20.76	58.74	28.18	28.05	86.93	60.03	87.84	122.95	169.70	257.80
Return on invested capital (ROIC) (%)			8.5	9.4	6.4	7.7	7.6	8.7	10.9	12.4
Return on equity (ROE) (%)	8.1	11.6	6.8	2.7	15.0	14.8	14.0	11.1	10.7	12.9
D/E ratio (Including non-controlling interests) (times)	0.29	0.23	0.23	0.35	0.54	0.58	0.41	0.20	0.20	0.15
Total shareholder return (payment basis)	57,937	67,591	77,246	91,761	96,653	111,210	329,146	244,460	389,206	557,124
including share buybacks	0	0	0	0	0	0	199,999	99,999	199,999	352,054
Dividend per share (yen)	13.0	15.0	18.0	19.0	21.0	25.0	29.0	36.0	43.0	50.0
Dividend payout ratio (%) Strategic shareholding status	27.1	20.0	39.1	104.8	20.2	20.7	21.0	28.3	32.0	28.1
assets (consolidated)	309 / 7.9%	288 / 6.0%	272 / 4.1%	233 / 3.3%	217 / 4.5%	198 / 5.1%	177 / 4.4%	157 / 1.1%	143 / 1.0%	135 / 4.0%

Notes: 1. Adjusted operating income is presented as revenues less selling, general and administrative expenses, as well as cost of sales.

Adjusted EBITA (updated definition) = Adjusted operating income + Acquisition-related amortization. Adjusted EBITA (old definition) = Adjusted operating income + Acquisition-related amortization + Share of profits (losses) of investments accounted for using the equity method.
Cash flows presented as free cash flows excluding cash flows from M&A and asset sales, etc.
On October 1, 2018, the Company completed the share consolidation of every 5 shares into 1 common share. On July 1, 2024, the Company completed the share split into 5 shares for every 1 common share. The figures of EPS, CFPS and dividend per share from FY2018 to FY2024 are calculated based on the adjusted number of shares due to the share consolidation and split. EPS and CFPS are calculated based on the weighted average number of ordinary shares outstanding during the period.
TSR (Total Shareholder Return) shows the investment return, including share price appreciation and dividends received during the period, with the investment value at the end of March 2016 set at a numerical index of one hundred.

Previous year Past 3 years Past 5 years Past 10 years TSR TSR Annual TSR TSR Annual TSR TSR Annual TSR

HITACHI INTEGRATED REPORT 2026

Contents

Annual Securities Report Corporate Governance Report Sustainability Report 2026

Management Plan (April 2026)

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model 12 HMAX—Recurring Digital Services

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data

41 10-Year Financial Data 42 5-Year ESG Data

5-Year ESG Data

Employee data (Hitachi Group)

		FY2021	FY2022	FY2023	FY2024	FY2025
Number of employees	Hitachi Group*2	368,247	322,525	268,655*1	282,743	287,901
	Hitachi, Ltd.	29,485	28,672	28,111	25,892	25,934
Average service (years)	Hitachi Group*2	13.5	12.6	12.9	12.6	11.8
Turnover rate (%)*3, 4	Hitachi Group*2	7.5	8.5	6.3	5.8	6.0

**AI professional talents*5 (Hitachi Group)**

**Employee engagement score*6 (Hitachi Group)**

Global average (point)		65	69.5	68.6	71.5	73.3
By region (point)	Japan	56	61.2	61.6	63.2	65.6
	Outside Japan	80	82.3	80.2	80.9	81.6

Registered employees, managers

Ratio of women employees (%)*3	Hitachi Group*2	20.2	22.3	22.5	23.2	23.4
Ratio of women managers (%)*7	Hitachi Group*2, 3	9.8	13.0	14.1	15.8	17.4
	Hitachi, Ltd.*8	6.8	7.4	7.8	8.5	8.9

Ratio of women and ethnically/culturally diverse executive and corporate officers† (Hitachi, Ltd.)

June 2022 June 2023 June 2024 June 2025 June 2026

Number of women executives	9	9	9	11	11
Ratio of women executives (%)	12.2	11.4	11.8	15.9	15.9
Number of non-Japanese executives	13	16	19	18	16
Ratio of non-Japanese executives (%)	17.6	20.3	25.0	26.1	23.2

†Executive Officers and Corporate Officers

[Scope of data]

*1 The decrease in the number of group employees from the previous fiscal year is mainly due to the deconsolidation of Hitachi Astemo (now Astemo). *2 Manufacturing workers not registered in the employee database and employees of some newly consolidated companies are not included. As of the end of fiscal 2025, the number of manufacturing workers not registered in the employee database was 22,000. *3 The figures are based on enrolled employees with employment contracts including those seconded from Hitachi Group to other companies and those taking leave, and excluding those seconded from other companies to Hitachi Group (as of March 31). *4 Figures include only voluntary resignations. *5 The number of employees who have completed the Company’s internal training program or obtained AI-related certifications from vendors, among others. *6 Employee engagement score measures the positive response rate of 4 factors—pride in working for Hitachi; whether it is a workplace one would recommend to others as a great place to work; job satisfaction and sense of accomplishment; and desire to continue working for Hitachi for the foreseeable future. *7 The increase in the percentage of women managers over time reflects improved coverage of our employee database and changes in the number of consolidated companies. *8 The figures are based on the number of employees including those seconded from Hitachi Group to other companies, those taking leave, and those seconded from other companies to the Hitachi Group (as of March 31). Figures for fiscal 2021 exclude those seconded from other companies to the Hitachi Group.

**Total recordable injury frequency rate (TRIFR*9) (Hitachi Group)**

	FY2021	FY2022	FY2023	FY2024	FY2025
Global total	0.27	0.26	0.16	0.13	0.15
Japan	0.12	0.14	0.13	0.11	0.11
Asia (excluding Japan)	0.11	0.09	0.05	0.05	0.07
North America, Central and South America	1.20	1.10	0.38	0.30	0.32
Europe	0.45	0.39	0.32	0.26	0.30

Number of fatal accidents

[Scope of data]

*9 Total Recordable Injury Frequency Rate (number of recordable injuries per 200,000 work hours)

Sustainable procurement activities (Hitachi Group)

	FY2021 [Human rights] 2,524*11	FY2022	FY2023	FY2024	FY2025
		1,374*12	3,227	4,029	5,090
Sustainability audits (companies)	25	128*13	150	153	142
Sustainability procurement seminars (companies)	359	520	269*14	156	388

*10 Sustainability monitoring in fiscal 2021 was focused on human rights and environment.

*11 Sustainability monitoring from fiscal 2022 onwards has been focused on environment, labor and human rights, ethics and sustainable procurement. *12 Included the number of companies audited by Hitachi Energy beginning fiscal 2022. *13 Procurement partners of Hitachi Astemo (now Astemo) not included in the Sustainable Procurement Seminars for fiscal 2023.

Environment (Hitachi Group)

	FY2021	FY2022	FY2023	FY2024	FY2025
Total greenhouse gases*14 (kt-CO2e)	3,412	1,565	676	601	460
Waste and valuables generated (kt)	1,111	356	164	154	162
Water usage (million m3)	26.03	14.56	10.92	9.20	10.01
Total chemical substances discharged (kt)	3.50	1.39	0.65	0.49	0.55

*14 Total GHGs: Scope 1 and 2 market-based

Avoided emissions through products and services: 280 million tons/year

(Forecast: fiscal 2025 to fiscal 2027 average)

[Scope of data]

Based on the Environmental Management Classification Criteria, all Hitachi Group sites are classified into three categories (A, B and C)*. The reporting boundary for environmental data is determined in accordance with the environmental risks associated with each category. *A: High environmental risk, B: Medium environmental risk, C: Low environmental risk

Sustainability Report

HITACHI INTEGRATED REPORT 2026

Who We Are

Four Core Business Strategies 12 HMAX—Recurring Digital Services

of Growth

Financial Strategy and Risk Management

11 Lumada—Hitachi’s Growth Model

05 CEO Message 09 Key Financial Indicators 10 Executive Officers

13 Energy

Formula / Contents

02 Aiming to be the global leader in continuously transforming social infrastructure through digital

28 Sustainability Strategy PLEDGES 29 Human Capital Strategy

Data