#1Hitachi Energy Investor Days 2023 Power electronics and business models as key enablers for the future energy system HITACHI Inspire the Next Niklas Persson BU Managing Director Grid Integration Hitachi Energy Hitachi Energy - Advancing a sustainable energy future for all Hitachi Energy#2Significant growth opportunities as commitments gather pace HITACHI Inspire the Next KUK Net zero by 2050 50GW offshore wind ambition US Net zero by 2050 30GW offshore wind ambition by 2030 EU Net zero by 2050 109-112GW offshore wind ambition by 2030 and 281-354GW by 2050 2 © 2023 Hitachi Energy. All rights reserved. Ver H China Net zero by 2060 1.2TW solar and wind ambition by 2030 Japan Net zero by 2050 Up to 45GW offshore wind by 2040 India Net zero by 2070 500GW renewables by 2030 (~50% of energy mix) Sources: IEA WEO 2022 - Net Zero Emissions by 2050 (NZE) Scenario; White House; The American Jobs Plan; White House; EU Renewable Energy Targets; European Commission; EU Action Plan; UK Net Zero Strategy; GOV.UK; IRENA; Gov China; Press Information Bureau, India; WEF; Status: May 2023 Hitachi Energy#3Power consulting advisory services - Plan Plan N Sustainability % Innovation Comprehensive services to support net zero transformation Novel solutions to new challenges ENOWA Partnership for world's most advanced renewable energy hub and the first at-scale fully renewable energy system 3 Digital HITACHI Inspire the Next Technical expertise to deliver data driven insights ....solving the increasing grid planning needs PowerGrid India PreFEED of 2x 2.5GW Pang- Kaithal HVDC green energy corridor to connect 13GW (solar, wind) to load centers in south of India HITACHI Discover Hitachi Energy Technologies © 2023 Hitachi Energy. All rights reserved. Hitachi Energy#4Scaling, new business models and framework agreements – Build - HITACHI Inspire the Next Indicative backlog of projects • 3x • Framework agreements Execution synergies across projects Lessons learned process • Technology innovation Scaling enablers (examples) Innovate through pioneering technology, standardization, and modularization Jul-20 2023 New Business Models EPC Turnkey New business models 3x De-risked EPC turnkey . • • • Predefined project agreements Innovative business models Adjusted performance of framework agreements Inflation adjustment mechanisms Modularity and scalability Detached civil work | || Scale supply chain through capacity expansion and holistic procurement strategy Ramp up execution and ensure operational excellence and resources 4 © 2023 Hitachi Energy. All rights reserved. EPC: Engineering, Procurement, Construction Hitachi Energy#5Our delivery model will enable rapid scaling - Build A Business model & partnerships B A HITACHI Inspire the Next - Business model & partnerships – global standards collaboration with our customers and partners to unlock growth, allow standardization and optimize capacity planning MV/LV1 technology partner Offshore platforms partner T&D substations partner F Innovation & ABB Petrofac Linxon Capacity pioneering Schneider Electric Aibel Advancing a tech E Operational sustainable energy future for all excellence D People LO 5 © 2023 Hitachi Energy. All rights reserved. B Innovation & pioneering technology Next-level product portfolio to catalyze the energy transition Power electronics-based solutions C Digital HVDC 1 Medium-Voltage and Low-Voltage STATCOM eMobility Grid Edge Hitachi Energy#6Framework agreements improve contractual setups and ability to deliver on projects A Business models and partnerships Long-term framework agreements: HITACHI Inspire the Next • enable faster and more efficient deployment of HVDC1 solutions • improve contractual setups and ability to deliver • through ... Standardization to increase synergies • Speed and productivity • Visibility for potential investments Этеплет Image credit: courtesy of TenneT Image credit: courtesy of Aibel Dogger Bank A, B and C TenneT 2GW Program > 3 projects 3.6 GW 6 projects 12 GW CO 6 © 2023 Hitachi Energy. All rights reserved. 1 High-Voltage Direct Current NEOM SSEN Transmission 3 projects 9 GW 5 projects 10 GW Hitachi Energy#71. HVDC is a key technology for a carbon-neutral energy system HITACHI Inspire the Next B Innovation and pioneering technology HVDC Bulk transmission over long distances, integration of renewables and interconnecting grids >150GW of HVDC1 links integrated into the power system Project Lightning First of its kind sub-sea power Das Al Ghallan transmission network in Middle East and North Africa region Shuweihat Mirfa 5 Higher power, lower losses, compactness Full control for grid reliability and flexibility Pioneering technology and execution leader High growth segment © 2023 Hitachi Energy. All rights reserved. Power-from-shore solution 3,200 MW Clean power transfer from mainland to ADNOC's offshore production operations > 30% CO₂ reduction of ADNOC's 2 offshore operations 1 High-Voltage Direct Current 2 Abu Dhabi National Oil Company Hitachi Energy#82. STATCOM allows increased efficiency and stability B Innovation and pioneering technology STATCOM Facilitates renewable adoption Improves industry efficiency and secures grid stability ✓ Compact design, lower losses, increased efficiency 40% less CO2 emissions Yggdrasil, Norway The world's longest power from shore in AC1, 150 MW JUNKHIS Phoenix, Great Britain World's first hybrid synchronous condenser Saving >62,000 tonnes of CO2 8 © 2023 Hitachi Energy. All rights reserved. 1 Alternating Current HITACHI Inspire the Next Hitachi Energy#93. eMobility solutions enable high-performance charging to scale up electric fleets B Innovation and pioneering technology Grid-eMotion® Compact and configurable grid-to-plug and data-to- analytics charging system High-performance charging Scalable for sites >1 MW and multiple charging points > 500 charging points with 100 MW charging power¹ Lower noise, vibrations and emissions Megawatt Charging portfolio Reducing charging time and providing scalability 100 million EVs by 20302 500 TWh electricity demand/year to power all EVs by 20302 1 Installed base and undergoing projects 9 © 2023 Hitachi Energy. All rights reserved. 2 EVO report. Bloomberg NEF report 2021 HITACHI Inspire the Next IC Hitachi Energy#104. Grid Edge Solutions increase energy autonomy and unlock new economic opportunities B Innovation and pioneering technology Grid Edge Solutions Energy management solutions Achieve energy autonomy & manage renewables Digital Helping the Faroe Islands aim for 100% renewables Challenge: Integrate the Porkeri wind farm to reduce diesel consumption and CO2 emissions Improve power quality Customer Value Automation Power Acquisition of eks Energy leading supplier of power electronics 10 © 2023 Hitachi Energy. All rights reserved. Solution: Maximize the use of wind energy Meet sustainability targets - Impact: Harnessing renewables like wind, hydro & solar HITACHI Inspire the Next Hitachi Energy#11Power Electronics and Business Models as key enablers: Delivering leading technology to accelerate the energy transition Key takeaways HITACHI Inspire the Next Scaling to accelerate 01 The energy transition has catalyzed a surge in electricity demand and fundamental changes to power grids the energy transition will be 02 New delivery models are essential to meet this growing electricity demand within a significantly more complex power grid system enabled by new business models, partnerships and pioneering technologies Hitachi Energy is introducing new business models to unlock 03 growth, allow standardization, optimize capacity planning and focus 04 on our core competencies Our pioneering technology solutions are crucial to unlock the energy transition from power generation to end use 11 © 2023 Hitachi Energy. All rights reserved. Hitachi Energy#12Hitachi Energy#13HITACHI Inspire the Next