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Hitachi High-Tech GLOBAL

January 5, 2015

2015 New Year's Greetings from the President

Aiming to Make Greater Progress as a Player in the Global Market

The following speech was delivered by President and CEO Masao Hisada to all employees during his New Year greeting.

A happy new year to you all.

Our business environment last year remained unpredictable. In the world economy, although the United States continued to be in good shape with its improved job market, the economic growth of emerging countries slowed down, the economic slump in Southern Europe dragged on, and there were also increasing risks in the situations in Ukraine and the Middle East. However, the Japanese economy continue to be signs of a recovery as a result of Abenomics, and the trend towards a weak yen and high stock prices has become more pronounced. There are still uncertainties about the effects of raising the consumption tax, but it was a year that the upswing had continued.
Under these circumstances, thanks to our initiatives to reinforce our management infrastructure and the business restructuring we have carried out, the Hitachi High-Tech Group is forecast to continue to show an increase in income and profit in FY2014 too, just as we did in FY2013.

I intend to make 2015 "a year in which we further reinforce the Hitachi High-Tech Group's strengths and go on the offensive to realize true growth." That said, I would like to say four things.

1. Shift Resources to Growth Sectors and Further Promote Innovation

Last year, in order that the Hitachi High-Tech Group could further accelerate the Corporate Strategy 2011(CS11) Long-term Management Strategy and its realization, we decided to reorganize the original four target sectors into the three business domains of "biotechnology and healthcare," "social and industrial infrastructure" and "advanced industrial systems," and to weight the allocation of investment and resources more than ever before in response to market transitions. I ask each department to accelerate aggressive global growth strategies by shifting resources to key regions and priority sectors, to reinforce and consolidate business infrastructure, and also to aim for further business expansion.
In addition, the Hitachi High-Tech Group is currently engaged in the Hitachi Smart Transformation Project to review and improve all our business procedures. I want you to work on boosting our cost competitiveness by steadily reaping the benefits of the activities and incorporating them in your business plans.

2. Expand Our Solutions Business by Strengthening Our Relationship with Our Customers

In 2013, the Process Engineering Center (PEC) was set up as a center for early collaboration with our advanced customers in the United States, and is the Hitachi High-Tech Group's first overseas technological development site for semiconductor manufacturing equipment. It was established to reinforce customer support, and is currently strengthening links with customers and working on further business expansion. I intend to establish and reinforce business infrastructure in cutting-edge fields, and to strongly promote expansion of our solutions business as partners in development with our customers. The PEC is one example of this.
Our Hitachi High-Tech Group is a business creator that continues to provide customers and society with creative and innovative value in the form of high-tech solutions. In order that we may display the business creativity that is our forte, I would like to reflect once more upon how to strengthen their relationships with their respective customers and how to tackle the solutions business from the customer's perspective, and to incorporate that awareness into their daily work.
In order to make our earnings structure more solid, I ask you to steadily implement action plans aimed at reinforcing and expanding our solutions business, a business which is expected to show high profitability.

3. Further Deepen WAY Activities

In order to further deepen the Hitachi High-Tech WAY (WAY), our key values to be shared, our WAY activities must be continued. As a new initiative last year, we held the WAY SESSION, which serves as a venue for exchanges of opinion between the workplace and management. This initiative was run with sessions being held at several locations in Japan and overseas. The important thing is that the WAY activities being implemented in each workplace should also stimulate communication, and that the WAY should be put into practice in our daily work. I would like you to continue to incorporate the WAY in your daily work and try to increase its spread still further, to actualize its spirit of Challenge, Open, Speed, and Teamwork and to help it to become firmly established as the corporate culture of the Hitachi High-Tech Group.

4. Ensuring Ethics and Integrity

The basic philosophy of the Hitachi High-Tech Group is to aim to be an enterprise trusted by all our stakeholders and to contribute to social progress via business activities based on creating value through high-tech solutions. If we are to be successful in global business, we need to make ethics and integrity our touchstone and continue to be a company that is trusted by society.
All employees must recognize the importance of observing laws, social rules and public mores, and of fulfilling our social responsibility as a company, and should make that their code of conduct. I ask you all once more to engrave this basic philosophy in your minds and make it part of your habitual behavior.

As globalization proceeds apace, there is also greater interest than ever before in how a company responds to such demands from society as protection of the global environment, respect for human rights, promotion of diversity, and participation in community activities. These are the elements which form the basis of our competitiveness. As a global player in the high-tech solutions business, I want us to become an entity that, via the value created through our business activities, can contribute to the resolution of various issues confronting the world and to the development and progress of human society. This year too, I would like each member of the Hitachi High-Tech Group to have great dreams and aspirations, and to make every effort towards the building of a sustainable society.

I would like to conclude my New Year's message by wishing that 2015 will be a year of good health and vitality for you and your families, and a prosperous one for the Hitachi High-Tech Group.

Media Inquiries

Reiko Takeuchi, Aiko Matsumoto,
CSR & Corporate Communications Dept., CSR Div.,
Hitachi High-Technologies Corporation
Tel: +81-3-3504-7760

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