Hitachi

Hitachi (TYO: 6501) is a Japanese multinational conglomerate operating across a diverse set of businesses including information and telecommunication systems, social infrastructure, energy solutions, railway systems, advanced industrial products, and automotive systems. It is one of the largest companies in Japan by market capitalization and generated JPY 9,729 billion (~USD 67 billion) in revenue in 2023 . 

Hitachi primarily operates across three broad reporting segments: Digital Systems & Services (DSS), Green Energy & Mobility (GEM), and Connective Industries (CI). Collectively, the DSS and GEM segments accounted for ~60% of Hitachi’s annual revenue in 2023. Hitachi is also known for its Lumada business—both a digital innovation IoT platform and a framework for co-creation—which cuts across each of these reporting segments. In 2023, Japan accounted for ~36% of Hitachi’s total revenue and constituted the company’s single largest market. For the overseas markets, Asia was the lead at 18% of revenue, followed by North America and Europe (15% and 13%, respectively). 

During 2018–2021, the company launched continuous reforms to improve profitability, including business restructuring, cost reductions through stringent project management, and productivity improvements. In 2022, Hitachi sold part of its stake in Hitachi Construction Machinery and also divested Hitachi Metals in the second-largest private equity investment in Japan since Kioxia (previously Toshiba Memory Corp).

Hitachi’s Mid-term Management Plan 2024 targets a 2021–2024 revenue CAGR of 5%–7%. The plan also includes increasing Lumada business’ contribution to one-third of total revenue (one-fourth as of March 2023) and 40% of total profits.