President & CEO Messages / Digital, Green, and Innovation as Our Growth Drivers

Today, we announced consolidated financial results for FY2021, and the Hitachi Group's new Mid-term Management Plan. We have achieved revenues of 10,264.6 billion yen, adjusted operating income of 738.2 billion yen, and net income attributable to Hitachi stockholders of 583.4 billion yen in the FY2021 consolidated financial results. Despite the re-expansion of COVID-19 variants and the global impact of the war in Ukraine, we can see satisfactory results. This is owed to your extra efforts in implementing measures to improve earnings and transforming cost structure. I am truly grateful for your hard work in a year full of challenges.

With the 2021 Mid-term Management Plan, we aimed to become a global leader in Social Innovation Business by improving social, environmental, and economic values. The new 2024 Mid-term Management Plan (2024 MMP), disclosed today, focuses on supporting people's quality of life with data and technology that fosters a sustainable society through our evolved Social Innovation Business. As people are faced with unpredictable social changes and worsening environmental degradation, addressing the issues of planetary boundaries (environmental limits within which people across the globe can live safely) and achieving wellbeing (the state of being comfortable, healthy, or happy) become the most important assignments across the globe. We should all consider what the planet Earth, communities, and humankind will be like in 2050 and create a vision for the lives we want through the upgraded Social Innovation Business.

Hitachi is now at a significant turning point. Based on the Social Innovation Business we've built over the past 10 years, we can effectively shift to growth mode with Digital, Green, and Innovation as growth drivers. Not only through our three sectors of Digital Systems & Services, which is the key player of our digital strategies; Green Energy & Mobility, which plays a leading role in global decarbonization efforts; and Connective Industries, which creates new values by connecting products with digital; but also with Hitachi Astemo, which contributes to autonomous driving and electrification of motor vehicles; we will work to boost Social Innovation Business. We will create new value by solving challenges faced by customers and communities with the combination of IT/OT/Products to improve our growth ratio and profitability, placing the Lumada business at the core. During the 2024 MMP period, we aim to achieve a compound annual revenues growth rate (FY2021-2024CAGR) of 5-7%, adjusted earnings before interest, taxes, and amortization (EBITA) margin for FY2024 of 12%, earnings per share (EPS) (FY2021-2024CAGR) of 10-14%, and core free cash flow (FCF) of 1,400 billion yen (total amount for three years).

To achieve the 2024 MMP, Hitachi Group colleagues should join forces and aim for more growth. Progress made by all of you leads to Hitachi's evolution. If we can examine what we want in life, find happiness in rewarding work, and bring change to Hitachi, we can change societies for the better. I believe small steps toward a better future, taken by each of 370,000 Hitachi Group colleagues, will have a considerable impact. Let's start with the first step.

April 28, 2022