January 4, 2024

Masafumi Senzaki
President and Executive Officer, COO

Happy new year, everyone. With the start of the new year, I am sending out this greeting regarding a few things that I would like to share with all of the Kenkijin.

While the construction machinery market felt as if it were slowing down last year in some regions such as Asia and Europe, North America grew steadily due to government infrastructure investment policies. In addition, the demand for mining machinery also steadily increased overall as resource prices remained high. However, it was also a year of increased geopolitical risk due to not only the grim situation in Russia and Ukraine but also the clashes between Israeli and Palestinian. In addition, with increasing material and distribution costs, rising interest rates, and accelerating inflation, there were also concerns about a global economic slowdown, resulting in an economic environment which required a more cautious outlook than ever before.

It was under such circumstances that Hitachi Construction Machinery kicked off the "BUILDING THE FUTURE 2025" Medium-term Management Plan from FY2023 and earnestly started taking new steps toward our second start-up period. With external stakeholders placing high expectations on the company, all of you aimed to make great strides and helped increase the performance. As a result, our areas of focus in the Americas, mining, and value chain businesses all achieved record high sales in the first half of FY2023, and the Group as a whole achieved its best ever performance. I wish to express my deep gratitude and respect for everyone's efforts.

The keywords of the current Medium-term Management Plan are "continuation and evolution." "Continuing" and developing the results of the value chain business and the Americas business which have been opened wide thus far while also "evolving" to take on the challenge of new growth areas are important themes. Based on the four core strategies of "delivering innovative solutions for customer needs," "enhancing value chain business," "expanding business in the Americas," and "strengthening human capital and corporate capabilities," let us aim for growth as a "true solutions provider" and unwaveringly execute the measures set forth by each division and business unit to promote the current Medium-term Management Plan.

In addition, with the start of the new year, I would like you to recall once again the group identity which we established in our second start-up period and revisit the meaning of the existence of the Hitachi Construction Machinery Group. Please put into practice our mission of "Meet expectations from customers, co-create innovative products, services, solutions and together, we continue to create new values" every day while always being guided by our vision which states, "Ensure a prosperous land and society for the future; we contribute toward realizing a safe and sustainable society." I hope that everyone will demonstrate the "Kenkijin spirit" to the best of their ability, further develop the individuality which you each possess, and play an active role in every workplace.

In closing, I would like to wish everyone a happy new year and pray that 2024 is a healthy and bright year for you and your families. Let us run up the orange-colored slope which leads to a prosperous land and society for the future while keeping the group identity and Kenkijin spirit close to our hearts.