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Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.

June 21, 2018

Accelerating the Development of Data Scientists for Further
Expansion of Digital Solutions

Increasing the number of data scientists at Hitachi Group companies worldwide
to 3,000 by FY2021

Tokyo, June 21, 2018 --- Hitachi, Ltd. (TSE: 6501, "Hitachi") today announced that it will be pursuing two initiatives globally for developing and strengthening data scientists at Hitachi Group companies, with the ability to provide digital solutions with OT*1 x IT. One of the initiatives is the establishment of skills requirements for data scientists and associated training programs. Hitachi will also launch the Professional Community, in which top-class scientists and people in charge of actual business in various fields train and support each other.

Hitachi is creating these initiatives with an aim to increase the number of data scientists at Hitachi Group companies worldwide, which is 700 at present, to 3,000 by FY2021, and to further expand its digital solutions.

Moving forward, Hitachi will contribute to the development of more data scientists, which is a social issue, by sharing the skills requirements and training programs developed through these initiatives with its customers and partners and allowing them to make effective use of the requirements and programs.

In recent years, various companies are required to quickly achieve digital transformation by making effective use of digital technologies that are evolving, such AI, IoT, and big data. However, the global shortage of data scientists, who are specialists in data analysis, has been an issue. For example, approx. 30,000 more human resources to work with big data, IoT and AI are needed in Japan as of 2018. This number is estimated to increase to approx. 48,000 by 2020*2. Under such circumstances, it is not easy to recruit data scientists, and advanced global companies have begun to take initiatives for developing data scientists.

Hitachi has launched a program for internal certification of high-level IT professionals, which conforms to the Certified IT Professional (CITP)*3 program of the Information Processing Society of Japan, and has been promoting the development of such human resources in Japan. At present, however, data scientists are also increasingly expected to have business knowledge and data analysis skills in the fields of OT, such as railways and industries, as well as skills in IT. In the initiative, Hitachi will add skills requirements in OT fields and those of top-class scientists with advanced AI technologies to the skills required of data scientists, based on the definition of "data scientist" by the Japan DataScientist Society. At the same time, it will bolster programs for training data scientists. Moving forward, Hitachi will share skills requirements and training programs, which will be established as results of these initiatives, with customers and partners who are interested in strengthening their data scientists, and continuously review the requirements and programs in response to changes in technologies and markets.

As a system for developing and strengthening data scientists, Hitachi will also launch the Professional Community for sharing AI and other advanced technologies, use cases and know-how, and facilitating discussions on methods of solving problems, in addition to the existing training schemes and programs for fostering employee skill sets, including OJT*4. Specifically, top-class scientists from all over the world who have created advanced AI technologies and people in charge of actual business with experience in digital transformation through OT x IT will provide information and advice to each other on the various issues faced by data scientists. With these and other activities, the professional community will support mutually enlightening, practical learning of data scientists within the Hitachi Group.

Further, Hitachi will facilitate quantitative understanding and visualization of data scientists and make it easy to reach employees who are needed for its businesses by registering the skills of data scientists from the Hitachi Group in its global HR Management Integrated Platform*5 and utilize them. It will also use the platform for measuring the effects of human resource development, recruiting appropriate human resources, and allocating them appropriately.

Hitachi will increase the number of data scientists at Hitachi Group companies worldwide to 3,000 by FY2021, so as to strengthen its support for customers' digital transformation further and expand digital solutions globally.

*1
OT stands for Operational Technology.
*2
Source: Findings of METI's Study of Recent Trends and Future Estimates Concerning IT Human Resources Released June 10, 2016, the Ministry of Economy, Trade and Industry
(Japanese)
*3
A certification program established by the Information Processing Society of Japan by referring to the standard of IT skills which are prevalent among Japanese companies
*4
OJT stands for On-the-Job Training (educational training that is provided through practical operations at actual work sites).
*5
"Hitachi builds new Global Integrated Platform to promote greater participation by the Group's diverse employees," a news release dated November 28, 2017

About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society's challenges, combining its operational technology, information technology, and products/systems. The company's consolidated revenues for fiscal 2017 (ended March 31, 2018) totaled 9,368.6 billion yen ($88.4 billion). The Hitachi Group is an innovation partner for the IoT era, and it has approximately 307,000 employees worldwide. Through collaborative creation with customers, Hitachi is deploying Social Innovation Business using digital technologies in a broad range of sectors, including Power/Energy, Industry/Distribution/Water, Urban Development, and Finance/Social Infrastructure/Healthcare. For more information on Hitachi, please visit the company's website at http://www.tosijuku.com.

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