Hitachi (6501) Status Update summary

Leadership transition and succession planning

• Board of Directors and Nominating Committee conducted a thorough CEO succession process, culminating in the decision to appoint Toshiaki Tokunaga as President and CEO effective April 1, 2025, with Keiji Kojima transitioning to Vice Chairman to ensure a smooth handover.

• The succession plan emphasized the need for digital-centric leadership to drive the next phase of growth, with Tokunaga recognized for his experience in digital strategy and global business expansion.

• Tokunaga has been a key architect of the next midterm management plan and has led major initiatives, including the acquisition of GlobalLogic and the expansion of the Lumada business.

Strategic direction and growth priorities

• The company aims to accelerate organic growth and transform into a digital-centric organization, leveraging its expanded global installation base and digital capabilities.

• The Lumada business is targeted to reach 30% of total sales by FY2024, with ambitions for it to exceed half of total sales in the medium to long term.

• Strategic collaborations with global technology leaders such as NVIDIA, Microsoft, Google, and AWS are central to advancing AI and digital transformation.

Financial performance and capital market recognition

• Achieved annual revenue growth exceeding 10% and expects adjusted EBITDA to surpass JPY 1 trillion in FY2024.

• Core free cash flow is projected to grow over 50% from the previous plan, reaching about JPY 1.5 trillion, enabling enhanced shareholder returns through dividends and buybacks exceeding JPY 1 trillion over three years.

• Market capitalization has tripled in the past three years, reflecting strong capital market recognition.