#1Hitachi Energy Investor Days 2023 CFO Perspective - a high value creating business driven by market leading growth and strong performance Ismo Haka CFO Hitachi Energy Hitachi Energy - Advancing a sustainable energy future for all HITACHI Inspire the Next Hitachi Energy#2Historically flat T&D market now seeing rapid acceleration driven by energy transition Hitachi Energy market1 outlook HITACHI Inspire the Next C-19 dip Outlook² Market actuals 6-9% p.a. Key drivers FY21-30 اشا Electrification and demand growth ☑ Renewables 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2030 Public 1 Market in BUSD 2 © 2023 Hitachi Energy. All rights reserved. transition Macro & regulatory environment Ди Aging infrastructure 2 Source: Hitachi Energy projections and McKinsey Energy Insights Global Energy Perspective 2023 Hitachi Energy#3Actions in place to address the market dynamics and capture opportunities Tailwinds demand drivers Macro conditions HITACHI Inspire the Next Headwinds supply conditions Volatility and longer lead time in commodities Logistics and supply chain. challenges • Government and societal commitment . Volatile economies • • Growth in renewables & electrification . Inflation and high interest rates • • Power Grids investments • Geopolitical conflicts and trade impact • Affordable & secure energy • Government policy and regulation 13 Capturing strong growth in addressable market • Adapted Go-To-Market model • Efforts on digital-driven services Capacity expansion plan Public © 2023 Hitachi Energy. All rights reserved. Ensuring sustained healthy margins • Value-based pricing • Price corridors • Adjusted tender validity • Future-based costing • Transformed and de- risked business model Hitachi Energy#4Positive development driven by market and proactive actions Orders, BUSD Order backlog, BUSD Revenue, BUSD Adj. EBITA %, Standalone1 ~30% p.a. ~40% p.a. ~15% p.a. +3.1 p.p. 3 ~40% p.a. 35-40% 15-18% 15-20% 4 ~9.2% 10 12 17 10 7.1% 20 6.1% 14 HITACHI Inspire the Next ROIC2% Standalone1 +5.0 p.p. -15% 12% 10% FY 2021 FY FY 2023 2022 Estimate FY FY FY 2023 FY 2021 2022 Estimate 2021 FY FY 2023 2022 Estimate FY FY 2021 2022 FY 2023 Estimate FY FY 2021 2022 FY 2023 Estimate Significant revenue growth, driven by market tailwinds and growing order backlog Improved margins & ROIC² driven by volume growth, operational excellence, leverage and capital efficiency 1 Excluding related cost and Hitachi internal fees, 2 Return on Invested Capital, Public © 2023 Hitachi Energy. All rights reserved. 3 Adjusted EBITA CAGR 4 On a comparable basis, equivalent to 8.2%, as reported in Hitachi's Web Conference on Q2 FY 2023 Earnings Hitachi Energy#5Growing backlog with higher margin securing continued revenue and profitability growth HITACHI Inspire the Next De-risking of business model Enhanced Terms & Conditions (T&C) Improved order backlog gross margin Order backlog (OBL) conversion to revenue, BUSD Improved visibility from 3 years to 5+ years Illustrative, as of Sep 2023 Volume Improved OBL GM1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 ☐☐ FA & CRA² Short/Medium-term Long-term FY 2021 FY 2022 FA & CRA² | I | Increased 2x OBL volume 2x 1x FY 2023 Estimate Public 1 Gross margin 10 5 © 2023 Hitachi Energy. All rights reserved. 2 Framework Agreement (Long-Term) and Capacity Reservation Agreement FY23 E Products Systems Software & Automation Services FY21 FA & CRA² 1 2 3 4 5 6 Years OBL visibility 2x Hitachi Energy#6We continue to drive profitable and sustainable growth CO 6 Hitachi Energy 2030 Purpose-driven strategic growth plan Strengthen the Core: 01 Continuously strengthening our power grids core business Expand Digital & Services: 02 Doubling efforts on Digital & Services. Expanding at the edge of the energy system Innovate & Collaborate: 03 Innovation, Synergies, Partnerships & M&A to accelerate growth Transition 2021 Utilities - Industry - Transport & Infrastructure Plan Build 12 17 D O Q IT, OT, IOT Operate & Maintain Energy Expertise & Digitalization enabling the Energy Transition at scale & speed Expand as planning partner Strengthen role as product & systems partner Innovation & People Strengthen & Expand Accelerate 2024 2027 Expand as services & operations partner Sustainable growth 2030 Hitachi Energy 2030 - our commitment to advancing a sustainable energy future for all, delivering social, environmental and economic value, aligned with Hitachi's vision and goals HITACHI Inspire the Next Digital transformation Capacity expansion Business & operating model Synergies Public © 2023 Hitachi Energy. All rights reserved. Transition 2021 Strengthen and Expand 2024 Operational efficiency: new global ERP, global HR platform, Salesforce enhancement 3 BUSD investment since 2020 Increased workforce by 8,000 people Strategic partnerships, new collaboration models, e.g., FA & CRA¹ ERP harmonization, joint purchasing, global account management 1 Framework Agreements (Long-Term) and Capacity Reservation Agreements Accelerate 2027 Sustainable growth 2030 Further advance the digital transformation, e.g., real-time visibility in demand/supply Further invest in manufacturing capacity and supply chain; scale workforce and build capabilities Further capitalize on clean energy-cycle dynamics in key geographies, expand role as full life cycle service partner Leverage digital and technological capabilities of Hitachi and Hitachi Energy Hitachi Energy#7HITACHI We have streamlined the business and we are well positioned for growth Inspire the Next المهما iii K Improved performance and resilience Increasing size and quality of backlog Sustained demand across business and regions Enablers Operational excellence across the value chain Productivity and working capital enhancement Investing for growth Expand capacity and workforce to meet growing demand Digital & Service opportunities Business model, collaboration & innovation Building synergies Partnerships ecosystem Energy + Digital value creation synergies Innovating with collaborative business models Global footprint, e.g., account management IT, ERP harmonization Proactively leverage tailwinds and mitigate headwinds Digital and IT transformation Innovation and R&D investment Selectivity in line with Strategic Plan 7 Public © 2023 Hitachi Energy. All rights reserved. Hitachi Energy#8Driving improved performance and resilience HITACHI Inspire the Next الشما 01 Improved performance and resilience Example: Transformers الشهما Action taken across various levers, e.g., global footprint, vertical integration, operational excellence, value-based pricing. 02 Enablers Example: across the portfolio Operational excellence, supply-chain savings, productivity, digital core Public 8 © 2023 Hitachi Energy. All rights reserved. Hitachi Energy#9Investing for growth - Global footprint, manufacturing and engineering 03 Investing for growth iji HITACHI Inspire the Next Miji Manufacturing HITACHI Hitachi Energy ATTACHI Engineering New factory: Bac Ninh, Vietnam Expansion: Dosquebradas, Colombia New factory: Bangalore, India New factory: Chongqing, China Public HITACHI Hitachi Energy Expansion: Bland and Jefferson City in the US New valve and C&P1 factory: Chennai, India 9 © 2023 Hitachi Energy. All rights reserved. 1 Control & Protection systems • 2,500+ technologists across business and functions in one campus . hardware to software, Extensive capabilities from from HVDC to microgrids Over 1,000 engineering projects across 40+ countries executed every year Hitachi Energy#10We are introducing new collaboration models and building synergies 04 Business model, collaboration & innovation Example: TenneT Framework Agreement First multi-project framework agreement and capacity reservation, enabling joint planning and modularization 10 10 Public © 2023 Hitachi Energy. All rights reserved. 05 Building synergies Example: Digital & IT synergies ERP harmonization, Workday HITACHI Inspire the Next HITACHI Inspire the Next الشما iji Hitachi Energy#11Digital and IT transformation as enablers for growth and synergies HITACHI Inspire the Next Miji 02 Enablers 03 Investing for growth iji 05 Building synergies Digitalization initiatives overview Related cost¹ – illustrative - S4/HANA SAP Deploying a new global ERP Workday workday. Adopting a common HR platform Other initiatives Public 11 © 2023 Hitachi Energy. All rights reserved. -80% ~90% IT build-up, application rationalization PoC2 FY 2021 FY 2022 FY 2023 FY 2024 1 Represents the majority of related cost, reported in Hitachi's Web Conference on Earnings, since July 2020 2 Percentage of Completion Hitachi Energy#12Our profitable and sustainable growth journey Significant topline growth with improved margins Adj. EBITA %, Standalone 1, illustrative Up Down 6.1% 2021 Volume Gross margin Public Enablers SG&A R&D Business mix 2024 12 © 2023 Hitachi Energy. All rights reserved. 1 Excluding related cost and Hitachi internal fees HITACHI Inspire the Next Drivers of profitable growth Volume growth, supported by backlog execution 12% 10% Gross margin accretion, supported by backlog margin 8% and improved risk profile Operational excellence Sales investments (volume leverage) G&A productivity enabled by digital transformation R&D growth initiatives (innovation) Hitachi Energy#13Hitachi Energy | Ambition 2024 Revenues, BUSD 10 12-15% p.a. FY 2021 FY 2024 Public Adj. EBITA %, Standalone¹ HITACHI Inspire the Next ROIC2%, Standalone¹ 12% 10% 8% 10% 6.1% FY 2021 FY 2024 -15% FY 2021 FY 2024 Sustaining industry leadership in performance Continue to grow above market and sustain margins, at upper end of range 2024+ 13 © 2023 Hitachi Energy. All rights reserved. 1 Excluding related cost and Hitachi internal fees 2 Return on Invested Capital Hitachi Energy#14CFO Perspective Key takeaways HITACHI Inspire the Next High value creating business driven by growth and capital returns 01 Energy transition driving accelerated investments, enabling long-term profitable and sustainable growth opportunities Active investments and portfolio management, continue shaping business model to capture market opportunities in line with Hitachi Energy 2030 plan 02 03 Upgraded growth ambition to 12-15% (FY21-24 revenue CAGR) and 04 sustained growth beyond 2024 Accelerated Service & Digital growth to support margin accretion, leveraging Hitachi Digital capabilities and synergies 05 Profitability at upper end of margin corridor 8-12% Public 14 © 2023 Hitachi Energy. All rights reserved. 06 ROIC 15%+ from improved profitability & capital efficiency Hitachi Energy#15Hitachi Energy#16HITACHI Inspire the Next