英文版培训课件：Management Strategy

Management

StrategyJune

4,

20021FY2001

Results

and

FY2002

Estimates2FY2001Ended

Mar.

31,

20027,993.7-117.4（73％）（－）（71％）（－）（－）（39％）（85％）（－）（－）75-3811918436（210％）（－）（147％）（－）（－）（123％）（96％）19060（－）（－）8,100200（101％）（－）Netsales:Operating

income:Information

&

Telecommunication

Systems35.7Electronic

Devices-163.6Power&

IndustrialSystems55.0Digital

Media

&

Consumer

Products-14.6High

FunctionalMaterials

&Components-22.0Logistics,Services

&Others3.2Financial

Services37.4Incomebefore

incometaxes

and

minority

interests:-586.0Net

income:-483.8：：：：(billion

yen)y/y

FY2002

(E)

y/y(%)

EndingMar.31,2003

(%)（95％）（－）“V-Shaped”

Recovery4003002001000-100-200FY2000FY2001FY2002(E)

3Operating

Income

(loss)FY2001:

Restructuring

charges

Restructuringofoperations:

Special

termination

benefits:140.4

billion

yen185.1

billion

yenFY2001:

Operating

loss:

-117.4

billion

yenReductionoffixedcosts:

Recoveryinutilization:

Lower

cost

of

materials:+240.0

billion

yen+180.0

billion

yen+320.0

billion

yen(ProcurementRenewalProject(PRP):

160.0billionyen)

Lower

selling

prices: -400.0billionyen

Others: -22.6

billion

yenNet

improvement:FY2002:Operatingincome:200.0billionyen

(projected)+317.4

billion

yen(billion

yen)4Reforms

achieved

by

Medium-Term

Business

Plan:

“i.e.

HITACHI

Plan”"Best

Solutions

Partner"Bolstered

global

solutions

businessStructural

reforms

by

Group

realignments,

alliances

&

acquisitionsSpeedingupdecisionmaking,increasedefficiency

in

managementsystemsEmployee

evaluation

and

remunerationsystems

based

on

performanceImplementationof

brand

managementIncreased

communication

both

internallyandexternally,

driving

sense

of

urgency5004003002001000-100-200FY1999FY2000FY2001FY2002

(E)Operating

Income

(loss)Pushing

Ahead

WithMedium-Term

Business

Plani.e.HITACHIPlanRoller-

coastertypeRope-waytype(billion

yen)Accelerating

Corporate

Innovation

Initiative5(CII):

(1)

Procurement

Renewal

Project

(PRP)Reduction

of

materials

purchasing

costs:Centralized

Net-based

purchasingRevisionof

procurement

specificationsand

methods

Slashing

distribution

costsOriginal

plan:reducing

600

billion

yen

in

FY2002

(Compared

to

FY2000)FY2002:640billion

yen(projected)FY2001:

260

billion

yen(both

compared

to

FY2000)Accelerating

CII:

(2)

Project

CTosecurefundsforstrategicinvestmentsandreduceinterest-bearingdebt:

shorten

by25%

turnoverof

inventoryand

accountsreceivableAt

September

30,

2000:

Turnover

of

204

days(Inventory:

99;Accounts

receivable:

105)<Original

FY2001

plan:175days;

improvecashflowby800

billionyen>FY2001

results:164days(Inventory:70;Accountsreceivable:94)

Cash

flow

improvement:

1,060billionyen3,493.13,590.83,0001,5001,452.41,489.6Sep.

2000Mar.

2001Mar.

2003(E)Mar.

20022,998.2(1,450)(3,000)Debt(billion

yen/term

end)Financial

Services1,528.2original

plan6Accelerating

CII:

(3)

Project

A－FY2003ProjectAtarget－

30%

of

net

sales40%

of

operating

income02004006008001,0001,2001,4001,600FY2001FY20025101520253035net

sales7Developing

businesses

thatare

the

best

in

the

worldProject

A

Sales

–

FY2001:

1,110billion

yen;

FY2002:

1,400

billionyenExamples:Storagesolutions,e-governmentsolutions,electricitysales,

advanced

medical

solutions,

ITS,

PDP

televisions,

F-ZTAT

microcomputeroperating

income0

（billion

yen）（billion

yen）Accelerating

CII:

(4)

Global

Strategy8(5)Project

EGlobal

StrategyOverseas

sales

ratio:From

32%

in

FY2001

to

projected

45%

in

FY2005

Aggressive

M&A’s

in

growing

business

fields

Expandbusiness

in

ChinaProject

EUsing

IT

capabilities

to

dramatically

upgrade

Hitachi’s

operational

structureInvesting

15

billion

yen

tobuild

a

total

supply

chain

management(TSCM)

systemand

daily

close

system

by

April2003(inadditionto200billionyenITinvestmentprojectedunder

the

i.e.Hitachiplan)Financial

StrategyLong-term

credit

rating:

Aim

to

maintain

single-A

or

higherImproveD/Eratio

March

2002:

0.97(Without

financial

services:

0.68

March

2004:

0.8

(projected)

:

0.5)UseProject

Cto

improve

cash

flowIncrease

use

of

the

Hitachi

Group

Pooling

System

Loans

for

Group

companies(aimed

to

reduce

debt):From

234.9billionyen

inMarch2002to

500

billionyen

inMarch

20039Vision

for

Hitachi’s

FutureHitachi

aimsto

be

a

globalsupplierof

total

solutions,

offering

IT-and

knowledge-based

Information

Systems

Services

and

Social

Infra-

structure

together

with

key

hardware,

software

and

high

functional

materialsand

components.Focusedontheabovetwokeyfields,Hitachiwilloffer:

keyhardware,softwareandhighfunctionalmaterialsand

componentsInformation

Systems

ServicesSocial

Infrastructure10“Future

Inspiration

Value”

(FIV)11(FIV:

Market

Efficiency

Value

Added

+

εx

Social

and

Environmental

Value)Investment

criteriaProfitable

within

3

years

and

eliminate

accumulated

losses

within5

yearsWithdrawal

criteria2

consecutive

years

in

the

red:

warning

issuedAfter

warning,

if

the

rebuilding

plan

is

not

approved

or

if

within

2

years

business

does

become

profitable:

withdrawor

sell

Implementing

FIVUse

FIV

to

evaluate

results

in

each

business.Make

managers

fully

aware

of

cost

of

capital

by

reflecting

FIV

on

bonuses

starting

from

FY2002

and

through

educationNew

Group

Management

Framework12Integrated

Management

of

the

Hitachi

GroupReduce

the

number

of

Group

companies

by

300

Clarify

the

management

framework

for

the

Group

1）Group

A:

Consolidated

Group

ManagementCompaniesfunctionbothstrategicallyandoperationallyin

step

withthe

HitachiGroupGroup

B:

Consolidated

Vision

and

BrandCompanies

share

management

vision

and

brand

as

member

of

theHitachiGroupGroup

C:

Consolidated

FinancesCompanies

with

autonomous

managementStudying

new

corporate

governance

system

suitable

for

Group

managementRealignment

Scenario

for

Hitachi

BusinessesConcentrateresourcesoninformationsystems

servicesand

socialinfrastructureDevelop

powerful

hardware

and

advanced

software;

offer

full-fledgedservicesImplementnewframeworkforGroupmanagement;

useFIVtoproactivelydecidewhentowithdrawfrom

or

investin

businessesStrengthening

Hitachi's

DNA

astheglobaltechnologyleader

(Produce

conglomerate

premium)13Progress

in

Business

RealignmentsFinancialservicesLogisticsservicesSoftware

Computertapes,batteries

andopticaldisksDisplaysIndustrialsystemsTelecommunicationequipmentConsumer

SemiconductorsproductsSAN/NASFinancialsystemse-GovernmentsystemsOutsourcingElectric

power

systemsBuildingsystemsAutomotive Publicproducts systemsTraffic

systemsSocial

InfrastructureR&D/BrandKeyhardware,softwareandhigh-

functional

materials

&

componentsHigh

functionalmaterials&

componentsConstructionmachineryInformation

Systems

ServicesFiberoptic

components14Progress

in

Business

RealignmentsKeyhardware,softwareandhighfunctional

materials

&

componentsFinancialservicesLogisticsservicesHDDPrintersSoftware

Computertapes,batteries

andopticaldisksDisplaysIndustrialsystemsTelecommunicationequipmentConsumer

SemiconductorsproductsSAN/NASFinancialsystemse-GovernmentsystemsOutsourcingElectric

power

systemsBuildingsystemsAutomotive Publicproducts systemsTraffic

systemsInformation

Systems

ServicesSocial

InfrastructureR&D/BrandHigh

functionalmaterials&

componentsConstructionmachineryIBMHDDFiberoptic

components15Progress

in

Business

RealignmentsFinancialservicesLogisticsservicesIIBBMMHHDDDDUnisia

JECSHitachiKokiCo.,

Ltd.PrintersHDDKeyhardware,softwareandhighfunctional

materials

&

componentsUnisia

JPrintersSoftware

Computertapes,batteries

andopticaldisksDisplaysIndustrialsystemsTelecommunicationequipmentConsumer

SemiconductorsproductsSAN/NASFinancialsystemse-GovernmentsystemsOutsourcingElectric

power

systemsBuildingsystemsAutomotive Publicproducts systemsTraffic

systemsInformation

Systems

ServicesSocial

InfrastructureR&D/BrandHigh

functionalmaterials&

componentsConstructionmachineryHitachi

Electronics

EngineeringCo.,

Ltd.Fiberoptic

components16三菱重工Progress

in

Business

RealignmentsFinancialservicesLogisticsservicesKeyhardware,softwareandhighfunctional

materials

&

componentsIBMHDDUnisia

JPrintersMitsubishiHeavy

Industries

Nuclear

powerSoftware

Computertapes,batteries

andopticaldisksDisplaysIndustrialsystemsTelecommunicationequipmentConsumer

SemiconductorsproductssystemssystemsFinancial

e-GovernmentOutsourcingElectric

power

systemsBuildingsystemsAutomotive Publicproducts systemsTraffic

systemsInformation

Systems

ServicesSocial

InfrastructureR&D/BrandHigh

functionalmaterials&

componentsConstructionmachineryHitachi

Electronics

EngineeringCo.,

Ltd.OpNextClarity

GroupSAN/NAS

ExperioGrant

ThorntonServers/Storage

systemsFiberoptic

components17Progress

in

Business

RealignmentsFinancialservicesLogisticsservicesSocial

InfrastructureKeyhardware,softwareandhighfunctional

materials

&

componentsMitsubishiHeavy

IndustriesNuclear

powerServers/Storage

systemsHDDUnisia

JPrintersSoftware

Computertapes,batteries

andopticaldisksDisplaysIndustrialsystemsTelecommunicationequipmentConsumerElectric

power

systemsPublic

systemsBuildingsystemsAutomotiveproductsTraffic

systemsInformation

Systems

ServicesR&D/BrandHigh

functionalmaterials&

componentsConstructionmachineryIBMproductsHitachi

Electronics

EngineeringCo.,

Ltd.SemiconductorsOpNextsystemssystemsFinancial

e-GovernmentOutsourcingSAN/NAS

Experio18HDDUnisia

JPrintersNECMitsubishiElectricElpidaSystem

LSIsWithdrawalfromCDT

businessClosureof

overseasTVproduction

basesProgress

in

Business

RealignmentsMitsubishiHeavy

IndustriesNuclear

powerServers/Storage

systemsFinancialservicesLogisticsservicesKeyhardware,softwareandhighfunctional

materials

&

componentsSoftware

Computertapes,batteries

andopticaldisksDisplaysIndustrialsystemsTelecommunicationequipmentConsumerproductsElectric

power

systemsPublic

systemsBuildingsystemsAutomotiveproductsTraffic

systemsInformation

Systems

ServicesSocial

InfrastructureR&D/BrandSemiconductorsIBMHitachi

Electronics

EngineeringCo.,

Ltd.OpNext

High

functionalmaterials&

componentsConstructionmachinerysystemssystemsFinancial

e-GovernmentOutsourcingSAN/NAS

Experio19Inspire

the

NextUbiquitous

solutionsSecurity

solutionsFinancial

solutionsBusiness

reform

solutionsDistributed

energy

solutionsLow

emission

vehiclesAdvanced

medical

solutionsBio

solutionsInformationSystems

ServicesR&D/BrandSocial

InfrastructureIntelligentManagementAdvancedHealthcareSustainable

EnvironmentalQuality

Life20This

documentcontains

forward-lookingstatements

which

reflectmanagement’s

currentviewswith

respecttocertainfutureevents

andfinancial

performance.

Words

such

as“anticipate,”

“believe,”

“expect,”

“estimate,”

“intend,”

“plan,”

“project”

andsimilar

expressions

which

indicate

futureevents

andtrendsidentify

forward-looking

statements.

Actual

results

maydiffer

materiallyfrom

those

projected

or

implied

in

the

forward-looking

statementsand

from

historical

trends.

Further,

certain

forward-lookingstatementsare

baseduponassumptions

of

futureeventswhichmaynot

prove

to

beaccurate.Factors

that

couldcause

actual

results

todiffer

materially

from

those

projected

or

implied

inany

forward-lookingstatements

include,

butarenotlimited

to,rapid

technological

change,

particularly

inthe

Information&Telecommunication

Systemssegment

and

Electronic

Devices

segment;

uncertainty

as

to

Hitachi’s

ability

to

continueto

develop

products

and

to

market

products

thatincorporate

newtechnology

onatimelyand

cost-effective

basis

andachievemarketacceptance;fluctuations

inproduct

demand

and

industry

capacity,particularlyin

the

Information&Telecommunication

Systems

segment,Electronic

DevicessegmentandDigital

Media&

Consumer

Products

segment;

increasing

commoditization

of

information

technology

products,

and

intensifying

price

competition

in

the

marketfor

such

products;

fluctuations

in

rates

ofexchangefor

the

yenand

other

currencies

in

which

Hitachi

makes

significant

sales

or

in

which

Hi