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CSR(Corporate Social Responsibility)

Hitachi

We have revised our business portfolio to reflect the shift in focus to Social Innovation Business. While we did not reach our overall revenue target, we did achieve most of our profit targets. We also realized our D/E ratio and equity ratio targets, enabling us to strengthen our foundation for further growth.

FY 2012 Performance

 
  FY 2011 Results FY 2012 Results FY 2012 Target*1
Revenues 9,665.8 billion yen 9,041.0 billion yen 10 trillion yen
Operating income ratio 4.3% 4.7% Over 5%
Net income attributable to Hitachi, Ltd. stockholders 347.1 billion yen 175.3 billion yen Consistently generate at least 200 billion yen
D/E ratio*2 (manufacturing, services & others) 0.86 times (0.56 times) 0.75 times (0.47 times) 0.8 times or below
Total Hitachi, Ltd. shareholders' equity ratio (manufacturing, services & others) 18.8% (20.5%)21.2% (23.2%) 20%
Exchange rate 79 yen/US dollar
109 yen/euro
83 yen/US dollar
107 yen/euro
80 yen/US dollar
110 yen/euro
*1
As of June 9, 2011 (revised to reflect HDD business transfer), assumed exchange rate
*2
Including noncontrolling interests and liabilities associated with the consolidation of securitized entities.

2012 Mid-Term Management Plan: Key Management Policies and Related CSR Activities

CSR activities related to our key management policies and Hitachi's material issues played a crucial role in achieving 2012 Mid-Term Management Plan goals.

2012 Mid-Term Management Plan Key Management Policies

Ⅰ. Strengthen Management Base

(1) Cost structure reforms
・Execute the Hitachi Smart Transformation Project
(2) Strengthen financial position
・Increase profitability and reinforce financial position
・Focus management resources

Material Issues for Hitachi / CSR Initiatives and Results

Supply Chain Management

Rate of procurement outside Japan

FY 2010 FY 2011 FY 2012
36% 38% 38%

Cost-cutting effect of Hitachi Smart Transformation Project

FY 2011 FY 2012
35 billion yen 75 billion yen

Supplier audits in emerging countries

FY 2012
12

Ⅱ. Global Growth Strategies

(1) Expand investment in key regions
・Globalize corporate functions and promote China Business Strategy 2015
・Expand business in ASEAN countries as a new key region and establish business in Myanmar
(2) Optimize use of human resources and increase efficiency
・Pursue global human resource strategies
・Launch Global Management Human Resources Development and Allocation Program in Fiscal 2012
(3) Strengthen global governance
・Strengthen response to globalized management and supervisory functions
(4) Value creation and CSR
・Pursue contributions to the environment and regional social contribution activities
・Respect human rights and implement stakeholder dialogues

Diversity Management

Non-Japanese employees in Japan

FY 2010 FY 2011 FY 2012
230 people 239 people 257 people

Ratio of female managers (Hitachi, Ltd.)

FY 2010 FY 2011 FY 2012
3.3% 3.4% 3.5%

Employment ratio of people with disabilities (Hitachi, Ltd. in Japan)

FY 2010 FY 2011 FY 2012
2.05% 2.00% 2.02%

Caring for the Environment

Contributions to CO2 emission reduction

FY 2010 FY 2011 FY 2012
15.51 million tonnes 19.04 million tonnes 22.74 million tonnes

Rate of reduction in CO2 emissions per unit production*1 (global)

FY 2010 FY 2011 FY 2012
21% 22%

Respect for Human Rights

Creation of the Hitachi Group Human Rights Policy
Announcement of the Hitachi Group Human Rights Policy (May 2013)

Occupational accident rates*2

2010 2011 2012
0.20 0.15 0.19

Products That Create a Sustainable Society

Eco-Product sales ratio

FY 2010 FY 2011 FY 2012
78% 80% 84%

Public Policy Initiatives

Stakeholder dialogues

FY 2010 FY 2011 FY 2012
3 3 2

Funding for Social Contribution Activities

FY 2010 FY 2011 FY 2012
1.6 billion yen 3.5 billion yen 3.2 billion yen
*1
Base year 2005
*2
90 major Hitachi Group companies in Japan including Hitachi, Ltd. through to 2011; 175 Hitachi Group companies in Japan, including Hitachi, Ltd. for 2012.