Skip to main content

CSR(Corporate Social Responsibility)

Hitachi

2012 Mid-Term Management Plan

Based on the 2012 Mid-Term Management Plan, produced in fiscal 2010, we deployed management policies to pursue growth through our Social Innovation Business, to solidify our financial position, and to help resolve global social issues.

"Growth driven by Social Innovation Business" and "Solid Financial Base" Created May 2010

We created the 2012 Mid-Term Management Plan in fiscal 2010. Regarding the forecasts for fiscal 2012, although revenues will not reach the target due to our sale of the HDD and small-to-medium LCD businesses, other targets, such as operating margin ratio, net income attributable to Hitachi Ltd., debt-to-equity and total Hitachi, Ltd. shareholders' equity ratios, are expected to be achieved.

Management Goals and Forecasts for the Final Fiscal Year

  Fiscal 2011
Results 		Fiscal 2012
Forecasts		 Fiscal 2012 Targets
Revenues ¥9,665.8 billion ¥9,100 billion ¥10 trillion
Operating income ratio 4.3% 5.3% Over 5%
Net income attributable to
Hitachi, Ltd.		 ¥347.1 billion ¥200 billion Consistently generate
at least ¥200 billion
Debt-to-equity ratio* 0.86 times 0.80 times 0.8 times or below
Total Hitachi, Ltd.
stockholders' equity ratio		 18.8% 20.0% 20%
*
Including the non-controlling interest and liabilities associated with the consolidation of securitized entities

Global Growth Strategies

Aiming at increasing the overseas sales ratio for fiscal 2012 to over 50%, we will raise the percentage of employees outside Japan.

Forecast Revenue Ratio and Percentage of Employees outside Japan

  Fiscal 2010
Results*		 Fiscal 2011
Results		 Fiscal 2012
Forecasts
Outside Japan
revenue ratio		 41% 43% 43%
*
Includes impact of sale of small-to-medium LCD and HDD businesses

Results and Forecasts of Staff Composition

  Fiscal 2010
Results*		 Fiscal 2011
Results		 Fiscal 2012
Forecasts
Employees in Japan 212,000 212,000 212,000
Employees outside Japan
(percentage) 		100,000 (32%) 111,000 (34%) 125,000 (37%)
Total 312,000 323,500 337,000
*
Includes impact of sale of small-to-medium LCD and HDD businesses

Social Innovation Business Strategy

A year after the Great East Japan Earthquake, there is a strong need for building disaster-resistant cities, establishing a robust IT infra-structure, ensuring power, and accelerating the diversification of power sources. The flooding in Thailand also highlighted the need to manage risk, maintain data centers and other infrastructure, and to build a better parts supply and production system.
To help develop a sustainable social infrastructure, we will expand our Social Innovation Business by focusing on "Global", "Fusion" and "Environment".

Specific strategies:

  1. Expand smart city business globally by using our demonstration models
  2. Pursue global growth in infrastructure systems in response to market needs
  3. Expand information telecommunications business globally using Big Data technologies
  4. Accelerate global business expansion for power systems

In April 2012, we reorganized in-house companies and Group companies into five groups. By integrating IT and Social Infrastructure based on market needs, we will accelerate the creation of new businesses, technologies, and services in important growth regions and industries.

Three Focuses of Social Innovation Business

Global
Leverage the Group's knowhow and experience, as well as the trust of our regional customers and partners, to become a truly global enterprise.
Fusion
Address every nation's need for Social Innovation Business by integrating our social infrastructure and IT expertise to produce unique value.
Environment
Draw on a wide range of environmental technologies and accumulated experience to build better environmental systems, helping to resolve global environmental issues.

Social Innovation Business Framework

Image

Report Download

Related Links