At the beginning of the second half of FY 2025, I would like to deliver the following message:
Our business results (specifically, sales, adjusted EBITA*1, and core free cash flow*2) for the 1st half of FY 2025 are expected to meet the budget goals thanks to our system standardization project for regional municipalities, SAP-related services, data center services, and various digital services.
In addition, Hitachi Systems ranked No. 1 in System development services (core business systems), which is a new category in the Nikkei Computer Consumer Satisfaction Survey 2025-2026, as announced by Nikkei BP in August.
We were also commended by various partner companies for our business activities, as well as for our employees’ expertise, skillsets, and capabilities. That we are able to receive such high recognition from customers and other external stakeholders is the result of your steady, dedicated efforts.
I would like to express my sincere gratitude to all of you in the Hitachi Systems Group.
*1 Adj. EBITA = (adjusted operating profit) + (equity-method profits or losses) - (amortization of acquisition-related intangible assets)
*2 Core free cash flow = (operating cash flow) - (capital expenditure)
As I did earlier at the business policy briefing meeting, I would like to re-emphasize the policies of the Hitachi Group and Hitachi Systems.
I ask that you strive to achieve the FY 2025 budget goals while adhering to the plans developed by you or the department you are working for in the first half of this fiscal year. In addition, let us firmly advance what needs to be done within this fiscal year and make preparations for growth in the coming year and the year after.
The goal of the Hitachi Group is to contribute to building a “harmonized society” in which our environment, well-being, and economic growth coexist in harmony, as well as to achieving sustainable growth. DSS will offer its digital capabilities to provide support for the growth of the energy, mobility, and CI sectors, with the aim of becoming a leading OT/IT service provider in the world.
As an integrated managed service provider, Hitachi Systems provides DX services and managed services to help consolidate supply chains of customers and to contribute to building a safe, secure, and sustainable society. In FY 2025, we are striving to increase the value proposition of our DX and managed services that we developed based on the 2024 Medium-Term Management Plan. We are also striving to increase our revenue and achieve market-leading growth. I ask that you adhere to the following four growth strategies and continue your efforts in the second half of this fiscal year:
Specifically, as the system standardization project for local governments reaches its peak, I ask that you adhere strictly to delivery dates and quality assurance practices when completing your tasks. We will further expand our DX and managed services, leveraging our knowledge accumulated from our experience in different industry sectors and different types of business, along with the approaches developed by working side by side with customers to solve their challenges.
We will also expand our business in growth areas such as data centers and GX, leveraging the strengths of Hitachi Systems. I ask that you consider using generative AI to resolve various business problems. Let us provide to society the knowledge we have gained through such in-house business reforms.
As I mentioned upon assuming this position, I ask the following three things:
Your safety and health are more important than anything else. If you stay healthy, you will be able to make your work and private life more fulfilling. Don’t keep work-related concerns to yourself. Share them with colleagues to resolve them. Please remember that you are responsible for protecting your own health.
It is essential to share and combine our strengths beyond organizational boundaries to carry out projects that will have a significant impact on society. I hope you will actively try new things (such as working with other industry sectors or experiencing a job rotation). Actually, I have experienced many different jobs and projects and gained many different opportunities for learning and self-development. I hope that you will adhere to the concept of “One HISYS” and “One Hitachi” as you continue with your work in the second half of this fiscal year.
To grow consistently in the future and contribute continuously to society, the Hitachi Systems Group must continue to act fairly and sincerely and respond to expectations and requests from stakeholders . To do so, it is essential to view compliance as a “business foundation” for sustainable business growth, not as a mere “code of conduct”, and act in accordance with “basics and ethics”, “right and wrong over profit and loss”, and “S (Safety) >>Q (Quality) >D (Delivery time) >C (Cost)”. Even when problems arise, let us promote the creation of an open workplace culture where issues are resolved organizationally without deviating from the rules.
Finally, I would like to conclude my remarks by wishing good health to all our stakeholders, including our customers, partners, members of the Hitachi Systems Group, and their families.
October 24, 2025
Takehiko Watanabe
President and CEO
Hitachi Systems, Ltd.
* This translation is a message shared with the employees of Hitachi Systems, Ltd. on October 1, 2025.
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