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© Hitachi, Ltd. 2008. All rights reserved. Corporate Responsibility Toward an Environment-Conscious Manufacturer -Introducing CoolCenter 50 and SystemIntegration LCA- Tetsuo TAKEMURA Corporate Officer, Global Business, Information & Telecommunication Systems, Hitachi, Ltd. 15 April 2008 Kyoto, Japan

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© Hitachi, Ltd. 2008. All rights reserved.

Corporate Responsibility Towardan Environment-Conscious Manufacturer

-Introducing CoolCenter 50 and SystemIntegration LCA-

Tetsuo TAKEMURACorporate Officer, Global Business,Information & Telecommunication Systems, Hitachi, Ltd.

15 April 2008Kyoto, Japan

2© Hitachi, Ltd. 2008. All rights reserved.

Contents

1. Hitachi Overview2. Corporate Level Activities3. ICT Sector Activities4. Conclusion

© Hitachi, Ltd. 2008. All rights reserved.

3© Hitachi, Ltd. 2008. All rights reserved.

1 – 1 Hitachi Overview

Monkey PodMonkey PodMoanaluaMoanalua Garden Park,Garden Park,Honolulu , Hawaii , USAHonolulu , Hawaii , USA

4© Hitachi, Ltd. 2008. All rights reserved.

1 – 2 Hitachi Group Business Fields(Year ended March 31, 2007 )

Power & Industrial Systems

Logistics, Services & Others

Electronic DevicesFinancial Services

Digital Media & Consumer Products

11%21%21%

4%26%

13%

\10,247.9 billion

Revenues

15%

10%

High Functional Materials & Components

Information & Telecommunication Systems(ICT Sector)

5© Hitachi, Ltd. 2008. All rights reserved.

2 – 1 Environmental Vision for the Future

Fundamental Credo: Contribute to society through the developmentof superior, original technology and products

In addition to preventing global warming, Hitachi will leverage its products and businesses to contribute to society via conservation of ecosystems and resource recycling

●Create energy with reduced CO2 emissions●Create products that consume minimal energy

●Create a recycling-oriented society ●Ensure clean air, water and soilto preserve biodiversity

PioneeringSustainability

Resource recyclingResource recyclingEcosystem Ecosystem conservationconservation

Global w arm ingGlobal w arm ingpreventionprevention

6© Hitachi, Ltd. 2008. All rights reserved.

●Medium-term Plan “Environmental Vision 2015” (3/2006)・Achieve “emission neutral” status by fiscal 2015

Reductions in CO2 emissions during production=Reductions in CO2 emissions during product use and recycling

●Long-term Plan “Environmental Vision 2025” (12/2007)・Reduce CO2 emissions associated with Hitachi Group products by 100 million tons/year in fiscal 2025(2005: 26.6 billion tons worldwide)・Challenge making all Hitachi Group products “Eco-Products”・Promote Collaborative Creation Projects to develop technology for combating global warming

2 – 2 Specific Initiatives Under Our Environmental Vision

7© Hitachi, Ltd. 2008. All rights reserved.

PowerPower--saving designssaving designs ICT systems

IT equipment power-saving planHarmonious Green Plan

Power-saving of ICT systems

PowerPower--saving of saving of ICT systemsICT systems

Reduce CO2 by Using ICT systemsReduce COReduce CO22 by by

Using ICT systemsUsing ICT systems

Workstyle reform

New system evaluationNew system evaluationtechnique (SItechnique (SI--LCA)LCA)

Data center power-saving PlanCoolCenter 50 Project

SI-LCA:SystemIntegration-Life Cycle Asessment

3 – 1 Outline of Efforts in ICT Sector

8© Hitachi, Ltd. 2008. All rights reserved.

3 – 2 Harmonious Green Plan

Low Power Processor and Memory

Power Supply Module

Low Power LSI and HDD

Cooling

Combination of Storage Media

Monitoring of Power Consumption

Automatic Power Management

Resource Optimization

Power Supply

Com

pone

nts

Prod

ucts

Ope

ratio

n

Virtualization

Goal: Reduce ICT equipment COGoal: Reduce ICT equipment CO22 emissions by 330,000 tons over the next emissions by 330,000 tons over the next five yearsfive years

9© Hitachi, Ltd. 2008. All rights reserved.

3 – 3 CoolCenter 50 Project

Goal: Reduce power consumption at data centers by 50% Goal: Reduce power consumption at data centers by 50% over 5 yearsover 5 years

Harmonious Green PlanICT equipment power-saving plan Data center power-saving plan

CoolCenter 50 Project

Thermal analysis solutionsProvide solutions

0

20

40

60

80

100 20% reduction

50% reduction

Power Consumption (%) Other lighting, etc

Power supply-relatedAir conditioningIT equipment

10© Hitachi, Ltd. 2008. All rights reserved.

Speedy decision-making

Advanced information security

Rebuild workplaces using “free address” system

Increase time with customers by up to 30%

Increase time with customers by up to 30%

Save office space by up to 30%Save office space by up to 30%

Workstyle Reform (50,000 people)

Quantitative evaluation necessary

・Use of thin client (disk-less) PCs to bolster security・Facilitating a ubiquitous work environment (out of the office, at home)・“Free address” workplace with no designated desks

Reduce consumption of paper and other resources

Reduce movement of personnel and things

Paperless, “free address” workplaces

3 – 4 Reducing CO2 Emissions by Using ICT Systems

11© Hitachi, Ltd. 2008. All rights reserved.

3 – 5 What is SI-LCA (SystemIntegration-LCA)?

Negative Benefits

・Resource consumption when manufacturing IT equipment

・Energy consumption during operation

Positive Benefits

・Reduced movement of people and things

・Reduced resource consumptionTeleconference,SCM,simulations

VS

Shipment Local calibration

Transportation

Design

Installation

UsageSystem Integration-LCA

The evaluation of environmental load throughout the lifecycle of systems, software and services

Procurement MaintenanceCollectionRecycling

10 stages

Fewer business trips

Power consumptionLCA:Life Cycle Assessment

12© Hitachi, Ltd. 2008. All rights reserved.

0 40,000 80,000 120,000 160,000 200,000

22% Reduction

Usage

Before the SCS adoption

After the SCS adoptionUsage

Procurement

0 40,000 80,000 120,000 160,000 200,000

CO2 emission (kg-CO2)

22% reduction

UsageBefore new workstyle adoption

After new workstyle adoptionUsage

Procurement

0 40,000 80,000 120,000 160,000 200,000

CO2 Emission (kg-CO2)

31% Reduction

Transportation by TrainWorking

Before the SCS adoption

After the SCS adoptionElectricalConsumption

Working

Transportationby Train

0 40,000 80,000 120,000 160,000 200,000

CO2 emission (kg-CO2)

31% reduction

Transportation by trainOffice workElectrical

Consumption

Office work

Transportation

by train

Usage stage only

Entire life cycle

3 – 6 Emission Reductions From SI-LCA Evaluation

Before new workstyle adoption

After new workstyle adoption

13© Hitachi, Ltd. 2008. All rights reserved.

The use of ICT systems helps prevent global warming and the benefits can be quantified

Hitachi developed SI-LCA to quantify benefits and help in efforts to curb CO2 emissions

The use of leading-edge ICT systems to support global development should help prevent global warming

Multinational cooperation and evaluation standardization are necessary for further advances

4 Conclusion

© Hitachi, Ltd. 2008. All rights reserved.

Corporate Responsibility Towardan Environment-Conscious Manufacturer

-Introducing CoolCenter 50 and SystemIntegration LCA-

END

Tetsuo TAKEMURACorporate Officer, Global Business,Information & Telecommunication Systems, Hitachi, Ltd.

15 April 2008Kyoto, Japan