Hitachi (6501) Status Update summary

Leadership transition and succession planning

• Toshiaki Tokunaga will become President and CEO effective April 1, 2025, succeeding Keiji Kojima, who will become Vice Chairman to support a smooth transition.

• The decision follows extensive succession planning and evaluation by the Nominating Committee and Board of Directors, emphasizing the need for digital-centric leadership.

• Tokunaga has been a leading candidate for CEO, recognized for his experience in digital strategy and global business expansion.

• The transition aims to maintain Hitachi's growth trajectory and global competitiveness.

Achievements and strategic direction

• Under Kojima's leadership, Hitachi achieved over 10% annual revenue growth, is expected to surpass JPY 1 trillion in adjusted EBITDA, and tripled its market capitalization in three years.

• Focus on cash-oriented management led to core free cash flow growth of over 50% and cumulative shareholder returns exceeding JPY 1 trillion.

• Sustainable management initiatives have outperformed midterm targets in decarbonization, CO2 reduction, and employee engagement.

• The next midterm management plan will prioritize digital transformation and organic growth, with Lumada business targeted to exceed 30% of total sales by FY2024 and more than half in the medium to long term.

Vision and leadership qualities

• Tokunaga is recognized for his leadership in digital business, successful M&A (notably GlobalLogic), and global expansion, as well as his ability to engage with international partners.

• He emphasizes sustainable growth, financial discipline, transparent management, and proactive stakeholder engagement.

• The company’s core philosophy of contributing to society through technology remains central, with a focus on innovation, adaptability, and global leadership.

• Tokunaga values diversity, empathy, and communication, especially with a workforce that is now over 60% non-Japanese.