Hitachi, Ltd. — Investor Presentation 2026

Jun 9, 2026

For Immediate Release

Notification regarding the disclosure of materials for Hitachi Investor Day 2026 (Digital Systems & Services Business Strategy)

Tokyo, June 9, 2026 Hitachi, Ltd. (TSE:6501) today announced the disclosure of the presentation materials for "Hitachi Investor Day 2026," which will be held on Wednesday, June 10, 2026, from 3:00 p.m. JST.

Attached materials: Digital Systems & Services Business Strategy

Media Contact
Global Communications Department
Global Corporate Brand & Communications Division
Corporate Strategy Group
Hitachi, Ltd.
+81-3-3258-1111

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Hitachi, Ltd.
+81-3-5208-9323

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HITACHI

Hitachi Investor Day 2026 Digital Systems & Services Business Strategy

June 10, 2026

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

©Hitachi, Ltd. 2026. All rights reserved

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HITACHI

Contents

1. Progress on Inspire 2027
2. Address Changes in the Business Environment Driven by AI
3. Growth in the "Modernization and AI Services" Market
4. Growth in the "Social Infrastructure x AI" Market
5. Growth Investments, Partnerships, and Structural Reforms
6. Conclusion

©Hitachi, Ltd. 2026. All rights reserved

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1.1 Progress on Inspire 2027 / FY2025 Review

HITACHI

Strong Japan Domestic Operations Drove Performance, Resulting in Record-High Profits

1 Based on the new reporting segment structure
2 ( ) : Previous target announced at Hitachi Investor Day 2025 (as of June 11, 2025)

FY2025 Achievements

• Increase in orders
  Backlog
  1.8 trillion yen +11%
• Improved profitability
  Adj. EBITA Margin
  15.5% +1.3pts
• Growth of the Lumada business
  Revenue ratio (DSS)
  62% +16pts
  Revenue ratio (Hitachi Group)
  40% +11pts

YoY

©Hitachi, Ltd. 2026. All rights reserved

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1.2 Growth of Business in Japan
HITACHI

Revenue Growth in Social Infrastructure, Driven by Large-Scale Projects

Significant Profit Margin Improvement through Gross Margin Enhancement

1 Combined total of SI & Services and Engineering & Services businesses in Japan
2 Based on the new reporting segment structure

Business Achievements (FY2025)

Increase in large-scale, mission-critical projects
Revenue generated from contracts valuing over 3 billion yen
330 billion yen, YoY +87%
- Modernization requiring deep domain knowledge and a proven track record

Rapid expansion of the defense business
Revenue growth YoY +26%
- Expansion of cybersecurity & intelligence, and equipment businesses such as naval systems and vehicles

Gross margin improvement
Gross margin YoY +1.4pts
- Expansion of high-value-added projects and AI-driven efficiency
- Enhanced project management and quality control

©Hitachi, Ltd. 2026. All rights reserved

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1.3 GlobalLogic Expands Synergies

HITACHI

Expanded synergies with OT*1 Sectors through a Shift in the Business Portfolio toward High-Growth AI

GlobalLogic

Expanded the digitalization of OT and products

The total is included in Lumada business revenue

Revenue

unit: million USD

Synergies (booked by other BUs & Group companies)*2

Stand-Alone

FY2024

FY2025

Achievements

Synergies creation case studies

Metaverse platform that replicates nuclear power plants

Solution to optimize energy efficiency in train operations

Service that utilizes building facility data to optimize operations, maintenance, and energy consumption

Challenge

Transformation of stand-alone businesses

©Hitachi, Ltd. 2026. All rights reserved

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HITACHI

Contents

1. Progress on Inspire 2027
2. Address Changes in the Business Environment Driven by AI
3. Growth in the "Modernization and AI Services" Market
4. Growth in the "Social Infrastructure x AI" Market
5. Growth Investments, Partnerships, and Structural Reforms
6. Conclusion

©Hitachi, Ltd. 2026. All rights reserved

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2.1 Changes in the Business Environment Driven by AI

HITACHI

Unlocking a Significant Growth Opportunity Leveraging Hitachi’s Strengths

New business opportunities driven by AI

100 trillion yen*1 (2030)

1 Internal analysis based on industry reports 2 A general term for services related to AI, including AI deployment and operation

©Hitachi, Ltd. 2026. All rights reserved

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2.2 Growth Strategy

HITACHI

Two rapidly Expanding Frontiers

— Delivering High Growth and Resilient Profitability Base

1 Forward Deployed Engineer
2 Value-based and recurring business model
*3 Total revenue from modernization and AI services(global)

Growth in the "Modernization and AI Services" Market

• Further deepen customer co-creation through the FDE*1 team
• Transform into a continuous value delivery model*2

DSS sector
AI-related revenue*3

FY2025 Results FY2025-2027
800 billion yen CAGR 20-25%

©Hitachi, Ltd. 2026. All rights reserved

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HITACHI

Contents

1. Progress on Inspire 2027
2. Address Changes in the Business Environment Driven by AI
3. Growth in the "Modernization and AI Services" Market
4. Growth in the "Social Infrastructure x AI" Market
5. Growth Investments, Partnerships, and Structural Reforms
6. Conclusion

©Hitachi, Ltd. 2026. All rights reserved

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3.1 Growth in the "Modernization and AI Services" Market
HITACHI

A High-Confidence Growth Scenario Driven by a Robust Installed Base and Full-Scale AI Utilization

KPI
AI-related revenue CAGR 20-25% (FY2025-2027)
Key areas for strengthening
• talent
• the foundation for AI utilization

This chart is for illustrative purpose only

FY2025
FY2030

©Hitachi, Ltd. 2026. All rights reserved

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3.2 Customer-Centric Value Creation

HITACHI

"FDE Team" on the Front Lines Solve Complex Challenges rapidly with AI

FDE Team

(Forward Deployed Engineer Team)

A specialist FDE team delivering AI-driven solutions on-site across the full lifecycle—from problem definition to deployment and continuous improvement

The role of FDE

Target in Japan 5,000 people

Identifying customer challenges and building hypotheses
Enable rapid prototyping to validate hypotheses
Owning the deployment and operation of mission-critical AI systems

Delivering highly reliable, high-quality AX*1

1 AX: AI Transformation 2 SE: System Engineer

Expanding the FDE Team, with mission-critical expertise

FDE Team

Leader

Specialist

• AI specialists / domain experts / data scientists / security engineers / project managers, etc.
• On-site with customers

SEs*2 in Japan (DSS sector)

Core workforce 35,000

Announced May 19, 26

Frontier AI Deployment Center

Support FDE Team

• Providing technology
• Use case repository
• On-the-job training programs, etc.

©Hitachi, Ltd. 2026. All rights reserved

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3.3 A New Development Model for the AI Era

HITACHI

Agentic Integration: AI-Agent-Driven Autonomous Development — A Game Changer for Productivity and Scalability

"Agentic Integration" enables autonomous development and operations by leveraging assets

Significant productivity improvements

Scalable business expansion

Minimize cost and time through AI agent-driven development and operations

Significantly expand ability to address challenges by comprehensive assets reuse

*1 HARC: Hitachi Application Reliability Centers

Deliver continuous, rapid, high-quality business transformation for customers

©Hitachi, Ltd. 2026. All rights reserved

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HITACHI

Contents

1. Progress on Inspire 2027
2. Address Changes in the Business Environment Driven by AI
3. Growth in the "Modernization and AI Services" Market
4. Growth in the "Social Infrastructure x AI" Market
5. Growth Investments, Partnerships, and Structural Reforms
6. Conclusion

©Hitachi, Ltd. 2026. All rights reserved

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4.1 Growth in the "Social Infrastructure x AI" Market

HITACHI

HMAX™ by Hitachi Converts rapidly Expanding Physical AI Opportunities into Sustainable Revenue Streams

KPI

HMAX revenue growth rate: CAGR 50-60% (FY2025-2027)

Grid maintenance services market 15 trillion yen*1 (2035)

Applied to multiple customers

Power grid stabilization

Real time grid control

Digital twin (DSS)

HMAX Energy

HVDC installed base over 150 GW

Railway AI application market 3 trillion yen*1 (2030)

Applied to multiple customers

Railway operational efficiency maximization

Edge AI (DSS)

HMAX Mobility

Signaling installed base over 30,000 km

Frontline worker support market 10 trillion yen*1 (2030)

Proven technology

Sustained, autonomous productivity improvement

Replicating expert skills

Autonomous evolution AI (DSS)

HMAX Industry

Customer Zero 175 in-house manufacturing sites

©Hitachi, Ltd. 2026. All rights reserved

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4.2 Deployment of Physical AI in Social Infrastructure

HITACHI

Evolve HMAX, which Pursues Ultimate Reliability through Four Pillars, into the “OS*1” that Supports Social Infrastructure Operations

Deployment of Physical AI (HMAX)

*1 OS: Operating System

©Hitachi, Ltd. 2026. All rights reserved

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4.3 Talent Driving the Deployment of Physical AI in Social Infrastructure

HITACHI

"Physical AI FDE Team" Integrating IT and OT with AI

Advanced AI Deployment in Social Infrastructure with Enhanced Reliability and Safety

GlobalLogic + Hitachi Digital Services

©Hitachi, Ltd. 2026. All rights reserved

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4.4 Data Foundation for the Deployment of Physical AI in Social Infrastructure

HITACHI

Data Fabric Integrates IT/OT Data to Enable New Value Creation across Industries

Optimal production linked to green power supply and demand, etc.

Dynamic optimization of railway power
Localized energy production and consumption, etc.

Full synchronization of production and logistics maximizing just-in-time efficiency, etc.

DSS Sector

Data Fabric (Data Infrastructure)

• Integration and structuring of IT/OT data
• Enable cross-sector and cross-industry data utilization

©Hitachi, Ltd. 2026. All rights reserved

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HITACHI

Contents

1. Progress on Inspire 2027
2. Address Changes in the Business Environment Driven by AI
3. Growth in the "Modernization and AI Services" Market
4. Growth in the "Social Infrastructure x AI" Market
5. Growth Investments, Partnerships, and Structural Reforms
6. Conclusion

©Hitachi, Ltd. 2026. All rights reserved

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5.1 Growth Investments

HITACHI

30 billion yen in Organic Investments (FY2026) and Financial Capacity for up to 1 trillion yen in Inorganic Investments (FY2026-FY2027)

©Hitachi, Ltd. 2026. All rights reserved

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5.2 Strengthening Partnerships

HITACHI

Collaborate with Partners to Advance AI Platforms and Infrastructure, Scaling Value Creation

Claude

Google Cloud

Microsoft

NVIDIA

OpenAI

Listed in alphabetical order.

©Hitachi, Ltd. 2026. All rights reserved

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5.3 Execution of Structural Reform

HITACHI

Accelerate Structural Reform Centered on IT Products Businesses

KPI>> Adj. EBITA Margin for IT Products Business +3.2pts (FY2025-2026)

Storage Business

Focus resources on market-leading block storage

• Build pipeline with new high-end products and strengthen sales via partnerships
• Ranked first in the enterprise external block storage systems market in Japan based on vendor revenue*1

ATM Business

Stable market supply and sustainable business growth

• Agreement on business integration with OKI (Scheduled to start in October 2026)

*1 Source: IDC Worldwide Quarterly Enterprise Storage Systems Tracker Q4 2025 (CY2025, Product Category: External RAID, Data Organization: Block)

©Hitachi, Ltd. 2026. All rights reserved

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HITACHI

Contents

1. Progress on Inspire 2027
2. Address Changes in the Business Environment Driven by AI
3. Growth in the "Modernization and AI Services" Market
4. Growth in the "Social Infrastructure x AI" Market
5. Growth Investments, Partnerships, and Structural Reforms Supporting
6. Conclusion

©Hitachi, Ltd. 2026. All rights reserved

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6.1 Target Financial Indicators

HITACHI

Capture AI Growth Opportunities to Further Improve profitability

	FY2024*1	FY2025*1	FY2026*1	FY2027*1
Revenue Growth	YoY +9%	YoY +3%	YoY +4%	7-9%
(7-9%)*2
FY2024-FY2027 CAGR
Adj. EBITA Margin	14.2%	15.5%	15.7%	16-18%
(16% + )*2
ROIC	10.3%	11.5%	10.5%	11-13%
(11-13%)*2
Lumada Revenue Ratio	46%	62%	70%	75-80%
(ca.65%)*2

【Potential Risks】 • Slowdown in IT investment • Sharp rise in component prices

1 Based on the new reporting segment structure
2 ( ) : Previous target announced at Hitachi Investor Day 2025 (as of June 11, 2025)

©Hitachi, Ltd. 2026. All rights reserved

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HITACHI

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HITACHI

Cautionary Statement

Certain statements found in this document may constitute "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such "forward-looking statements" reflect management's current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as "anticipate," "believe," "expect," "estimate," "forecast," "intend," "plan," "project" and similar expressions which indicate future events and trends may identify "forward-looking statements." Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the "forward-looking statements" and from historical trends. Certain "forward-looking statements" are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on "forward-looking statements," as such statements speak only as of the date of this report.

Factors that could cause actual results to differ materially from those projected or implied in any "forward-looking statement" and from historical trends include, but are not limited to:

• economic conditions, including consumer spending and plant and equipment investment in Hitachi's major markets, as well as levels of demand in the major industrial sectors Hitachi serves;
• exchange rate fluctuations of the yen against other currencies in which Hitachi makes significant sales or in which Hitachi's assets and liabilities are denominated;
• uncertainty as to Hitachi's ability to access, or access on favorable terms, liquidity or long-term financing;
• uncertainty as to general market price levels for equity securities, declines in which may require Hitachi to write down equity securities that it holds;
• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components;
• credit conditions of Hitachi's customers and suppliers;
• general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports and differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations;
• uncertainty as to Hitachi's ability to response to tightening of regulations to prevent climate change
• uncertainty as to Hitachi's ability to maintain the integrity of its information systems, as well as Hitachi's ability to protect its confidential information or that of its customers;
• uncertainty as to Hitachi's ability to attract and retain skilled personnel;
• uncertainty as to Hitachi's ability to continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance for such products;
• exacerbation of social and economic impacts of the spread of COVID-19;
• the possibility of disruption of Hitachi's operations by natural disasters such as earthquakes and tsunamis, the spread of infectious diseases, and geopolitical and social instability such as terrorism and conflict;
• estimates, fluctuations in cost and cancellation of long-term projects for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;
• increased commoditization of and intensifying price competition for products;
• fluctuations in demand of products, etc. and industry capacity;
• uncertainty as to Hitachi's ability to implement measures to reduce the potential negative impact of fluctuations in demand of products, etc., exchange rates and/or price of raw materials or shortages of materials, parts and components;
• uncertainty as to the success of cost structure overhaul;
• uncertainty as to Hitachi's ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;
• uncertainty as to the success of acquisitions of other companies, joint ventures and strategic alliances and the possibility of incurring related expenses;
• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness;
• the potential for significant losses on Hitachi's investments in equity-method associates and joint ventures;
• uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity-method associates and joint ventures have become or may become parties;
• the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
• uncertainty as to Hitachi's access to, or ability to protect, certain intellectual property; and
• uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee benefit-related costs.

The factors listed above are not all-inclusive and are in addition to other factors contained elsewhere in this report and in other materials published by Hitachi.

• This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

©Hitachi, Ltd. 2026. All rights reserved