My name is Takehiko Watanabe. I have been appointed President and CEO of Hitachi Systems.
About 40 years ago, I joined a company that would later become Hitachi Systems. Beginning my career as a systems engineer working on financial systems, I gained extensive experience in the public sector and today assume the position of company president.
Over the years, this company has given me many opportunities to take on new challenges and grow. For that reason, I take pride in my colleagues, our company’s culture, and the work we do. Our company provides essential systems and services to customers in various regions and sectors, including the public sector, social infrastructure, finance, and manufacturing, wholesaling, and retailing. I feel both great satisfaction and a strong sense of responsibility regarding our contributions to society.
Today marks the start of the first fiscal year under the new Mid-Term Management Plan. Hitachi, Ltd., aims to transform into a “True One Hitachi” with digital at its core and to sustainably accelerate the growth of the Social Innovation Business as a digital-centric company.
The Hitachi Systems Group has become an indispensable player that supports the Hitachi Group’s social innovation business. As a company, we work closely with customers of all sizes and in a wide range of industries, gaining a deep understanding of their businesses and operations. Through discussions with each customer, we are able to provide optimal IT services and, as a result, expectations for our company continue to grow. I hope we can fully leverage our strengths (such as the experience, expertise, and technological capabilities that we have cultivated over the years) to become a driving force in the Hitachi Group’s efforts to become a leading global company.
Now, I would like to make three requests: The first is to prioritize your health and happiness above all else. Being healthy allows us to lead fuller lives both privately and professionally. If you run into any problems at work, instead of trying to tackle them on your own, I hope you will consult your colleagues and work together to solve those problems. Please remember that you are responsible for your own health and act accordingly.
Secondly, I ask that you keep in mind the value of teamwork. One thing that sets our corporate philosophy apart is its inclusion of the phrase “respect for humanity and its infinite potential.” There are, in fact, many employees who embody this corporate philosophy, respecting one another and working as a team to accomplish great things. Recently, there has been an increase in interdepartmental collaborations, with notable examples including Go-To-Market activities and system standardization for local governments. These initiatives that transcend departmental boundaries and combine our respective areas of expertise are vital in order for us to continue carrying out work that has a significant impact on society. Thus, I ask that you engage in your work with our motto of “One HISYS, One Hitachi” in mind.
My third and final request is that each of you uphold our Basics and Ethics and think in terms of right and wrong is more important than profits and losses.” In any and all situations, it is important to make decisions according to the principle of “S (Safety) >> Q (Quality) > D (Delivery) > C (Cost).” To those of you in management positions, I ask not only that you follow this principle when making decisions yourself, but also that you reinforce this stance (prioritizing S (Safety) >> Q (Quality) > D (Delivery) > C (Cost)) among your group members, continuously and through your own words. I also ask that each of you practice anger management and strive to create a work environment where work-related issues are resolved together as a group. The trust in the Hitachi Systems Group that we built up over the years can be lost in an instant if an accident or incident were to occur. So, I ask that you do not lose sight of our Basics and Ethics in your drive to achieve your goals.
Looking back on our performance in fiscal year 2024, we are expecting excellent results well above our budget goals. We achieved record highs for sales, adjusted EBITA, and core free cash flow, and expect to safely achieve the targets set in the 2024 Mid-Term Management Plan. These results are the fruits of everyone’s efforts and, for that reason, I would like to extend my deep respect to each and every one of you.
Today, in addition to 282 new graduates, we welcome a number of mid-career hires as well as transfers from the data center service business divisions of Hitachi, Ltd., and Hitachi Information Engineering, Ltd., for a total of 416 new members of Hitachi Systems. I would like to extend a warm welcome to all and look forward to seeing your experience and skills in action. As for the departments that will be receiving new team members, I ask that you provide the support necessary to get them off to a smooth start. I hope members of the Hitachi Systems Group can collaborate across company and departmental boundaries and work together as one united group to further our corporate vision of becoming a global services company that customers can rely on completely.
Lastly, I would like to conclude my address today by wishing good health to all Hitachi Systems Group stakeholders, including our customers and business partners, as well as our colleagues and their families.
April 25, 2025
Takehiko Watanabe
President and CEO
Hitachi Systems, Ltd.
* This translation is a message shared with the employees of Hitachi Systems, Ltd. on April 1, 2025.
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