HITACHI Business Summary

Hitachi Ltd. (HTHIY) operates a diversified Social Innovation Business model, generating revenue through high-value system integration, industrial hardware sales, and a rapidly expanding recurring service ecosystem anchored by its Lumada digital platform. The company is organized into three primary segments: Digital Systems & Services (DSS), which provides IT consulting and cloud solutions; Green Energy & Mobility (GEM), focusing on power grids and railway systems; and Connective Industries (CI), which encompasses building systems and industrial automation. As of early 2026, Hitachi has successfully pivoted from legacy manufacturing toward a software-centric strategy, with Lumada-related services now accounting for over 50% of total group revenue. In the global market, Hitachi competes directly with industrial titans such as Siemens, ABB, and Schneider Electric, distinguishing itself through superior Operational Technology (OT) and Information Technology (IT) integration, particularly in the decarbonization of power grids and urban infrastructure. Founded in 1910 by electrical engineer Namihei Odaira alongside a core team of engineers including Naosaburo Takao and Kumeo Baba, Hitachi originated as an electrical repair shop within the Kuhara Mining Company. Today, the leadership team is headed by President and CEO Toshiaki Tokunaga, a veteran executive who assumed the role in April 2025 to accelerate the company's digital transformation. Key leadership includes Shigetoshi Sameshima as Group CTO, Tomomi Kato as CFO, and Andreas Schierenbeck, who leads the high-growth Energy Sector. The company’s strategic direction is supported by a robust board and significant institutional backing from major shareholders, including The Master Trust Bank of Japan, Custody Bank of Japan, and global asset managers BlackRock and Vanguard, reflecting strong investor confidence in its transition to a high-margin, data-driven industrial leader.