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photo :Toshiaki Higashihara President & CEO

In May 2016, Hitachi announced its 2018 Mid-term Management Plan with the goal of becoming "An Innovation Partner for the IoT Era." Now, the Hitachi Group is working together to execute growth strategies and structural reforms aimed at achieving fiscal 2018 target revenues of ¥10,000.0 billion, adjusted operating income and EBIT ratios of more than 8%, and net income attributable to Hitachi, Ltd. stockholders of more than ¥400.0 billion.

In fiscal 2016, we accelerated the global rollout of our Social Innovation Business by creating a market-driven business structure comprised of three layers. The front, which consists primarily of the 12 business units that work to develop and provide services close to customers; the platform, which enables Hitachi to provide services more quickly and efficiently; and the products, which is responsible for ensuring Hitachi are globally competitive. This approach has encouraged the restructuring of our business portfolio and structural reform of our low-profitability businesses. These efforts are beginning to produce consistent improvements in our earning capabilities and financial condition. We also launched Hitachi's IoT platform "Lumada," which incorporates Hitachi's strength in operational technology (OT) with its significant track record in offering solutions that are driven by IT, including data analytics and utilization. Today, we are creating an environment that rapidly creates new value for customers by using the latest digital technologies.

In September 2016, we formulated our long-term environmental targets, entitled "Hitachi Environmental Innovation 2050," and published an integrated report that enhances our conventional annual report with non-financial (ESG) information. These initiatives are part of Hitachi's ongoing effort to promote stronger corporate governance, respect for human rights, environmental preservation, diversified management, and other related issues.

In fiscal 2017, Hitachi will continue the speed of its transformation and increase its investments in growth areas. We are committed to establishing a global organization that accelerates our Social Innovation Businesses, and utilizes the latest digital technologies to advance innovations from the incubation to execution phase. In addition, we are committed to achieving further growth in four strategic areas: Power and Energy; Industry, Distribution and Water; Urban; and Finance, Public and Healthcare. Furthermore, Hitachi has established the new Investment Strategy Division for planning investment strategies that create an optimum asset allocation for the Hitachi Group, as well as the new Future Investment Division for formulating medium-to-long term focus fields. With these two new Divisions, we will increase our focus on asset efficiency management. Also, with our increased awareness of Sustainable Development Goals (SDGs), the centerpiece of the 2030 Agenda for Sustainable Development adopted by the United Nations in 2015, we will strive to meet the wide range of stakeholders' expectations for sustainability management.

In a time of continuing uncertainty, where the world is being shaken by unexpected events, Hitachi will accelerate our collaborative creation with customers and partners, and continue to achieve sustainable growth and increased corporate value as a leader in the IoT era. We would like to ask for your continued support in the years ahead.

April 2017
Toshiaki Higashihara President & CEO
Toshiaki Higashihara
President & CEO