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Hitachi

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CEO Message In fiscal 2017, Hitachi shifts into high gear. Our Social Innovation Business will leverage our digital technology to create new value around the world.

President & CEO Toshiaki Higashihara

In fiscal 2017, Hitachi shifts into high gear. Our Social Innovation Business will leverage our digital technology to create new value around the world.

President & CEO Toshiaki Higashihara

“What kind of company will Hitachi be ten years from now?”
My thoughts on this topic are clear: “Hitachi must be the kind of company whose very name is synonymous with innovation.”
Hitachi delivers innovations that answer society’s challenges. With our talented team and proven experience in global markets, we can inspire the world. This is our Vision, and it is up to us to make it a reality—to help establish a sustainable global society through our business operations.

Shifting into high gear

Hitachi is currently moving forward with its 2018 Mid-term Management Plan, targeting fiscal 2018. In the first year of the plan, fiscal 2016, we enacted a range of reforms to lay a strong foundation for future growth. Strong organic growth in individual businesses drove revenues, adjusted operating income, EBIT, and net income attributable to Hitachi, Ltd. stockholders to levels exceeding the forecasts we announced at the beginning of the fiscal year. The company’s ROA* and free cash flow have improved, and all promises made to the market have been fulfilled.

Fiscal 2016 Results and Fiscal 2017 ProjectionsBillions of yen
  FY 2016 FY 2017 (plan)
Revenues 9,162.2 9,050.0
Adjusted operating income
Ratio to revenues
587.3
6.4%
630.0
7.0%
EBIT
Ratio to revenues
475.1
5.2%
580.0
6.4%
Net income attributable to
Hitachi, Ltd. stockholders
231.2 300.0

Internal reforms included work on the selection and concentration of businesses. We made decisive progress on deconsolidating our three listed subsidiaries (Hitachi Transport System, Ltd., Hitachi Capital Corporation, and Hitachi Koki Co., Ltd.) and enacting structural reforms for less profitable businesses. We also continued our transition from a product-out organizational structure to a market-driven one, and our launch of the Lumada IoT platform will enable us to create enormous new value moving forward.
In fact, we are currently redesigning our entire business model around the axis of Lumada. Many businesses around the world provide consulting, products, or system integration (SI) separately, but we believe that only Hitachi can deliver full, end-to-end solutions, from exploring customer issues to constructing and maintaining actual systems.
Our shareholders tell us that they agree with this assessment of our strengths and our approach to reform. They are voicing their approval of our strategic direction and urging us to move swiftly toward realizing its potential. We are determined to live up to these expectations. In fiscal 2017, we will shift into high gear, accelerating our activities in a range of fields globally in order to leap ahead.

*
ROA (Return on assets) = Net income ÷ Total assets (Average between the end of the current fiscal year and the end of the previous fiscal year) x 100

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