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JAPAN, Published date 16 April, 2013

Hitachi to Strengthen Global R&D Strategy

Hitachi to Strengthen Global R&D Strategy - Plans to spur overseas business expansion by promoting R&D activities leveraging regional characteristics - Tokyo, April 16, 2013 — Hitachi, Ltd. (TSE: 6501, “Hitachi”) has decided to build-up a global R&D system closely linked to markets in order to spur business expansion. Under the new global R&D strategy, Hitachi will first increase the number of overseas researchers by seeking talented human resources globally.

Further, to expand business in target regions, Hitachi will also be establishing a new research base in Brazil. The new research base will manage and promote local R&D activities as well, open laboratories within each regional base to conduct research and development to leverage regional characteristics.

Currently, Hitachi is promoting management initiatives designed to drive growth in global markets, focusing on the Social Innovation Business. In the R&D, Hitachi has positioned the research laboratories in Japan as the development bases for core technologies while expanding overseas R&D bases in order to directly incorporate the latest trends in technology and market needs.

The new measure decided upon to strengthen the global R&D strategy consists of the following three pillars. The first is the personnel initiative: Hitachi will increase the number of overseas researchers from 280 at present, to 400 by fiscal 2015 (year ending March 31, 2016). Further, Hitachi will be actively appointing qualified local personnel as leaders to accelerate activities for closely linked regional research. The second is the establishment of the ‘Hitachi Brazil Laboratory’ (*) in June 2013 as a new research base in Brazil, one of the focus regions identified by Hitachi, to contribute to business expansion. Currently, Hitachi has research bases in 6 regions: Japan, U.S., Europe, China, Asia and India, to manage and promote regional R&D. The ‘Hitachi Brazil Laboratory’ will form the seventh regional base. In order to promote R&D leveraging regional characteristics, Hitachi will also be enhancing the research centers and laboratories within each regional research base. Hitachi established the ‘European Rail Research Centre’ in the UK in October 2012, followed by the ‘Hitachi China Materials Technology Innovation Center’ in China in April 2013, and this is followed by plans to establish the ‘Big Data Research Laboratory’ in Hitachi America, Ltd. - Research and Development.

By working to strengthen the global R&D strategy, Hitachi will expand R&D activities firmly rooted in each region. At the same time, Hitachi will promote R&D activities that incorporate a diverse array of experience, backgrounds, and ideas, which are the source of creativity and the catalyst for innovation. Through these efforts, Hitachi aims to drive further expansion in its overseas business.

(*) tentative name

About Hitachi, Ltd. Hitachi, Ltd., (TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 320,000 employees worldwide. Fiscal 2011 (ended March 31, 2012) consolidated revenues totaled 9,665 billion yen.

Hitachi is focusing more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them.

For more information on Hitachi, please visit the company's website at http://www.hitachi.com.