Fiscal 2022, when we declared a shift to growth, marked a significant milestone for Hitachi. This pivotal year served as a crucial turning point, setting the foundation for growth in the next decade by leveraging the global groundwork established through a decade of reforms. To achieve a sustainable society through data and technology, Hitachi remains committed to reforming its business portfolio, with a focus on its Social Innovation Business.
In fiscal 2022, we streamlined our subsidiaries from over 20 to zero, aligning with our strategic objective of prioritizing core businesses while fostering growth. In 2023, we are proceeding with planned deconsolidation of Hitachi Astemo, our automotive components business. In response to the three global trends of "Green," "Digital" and "Connective" - which we believe are reshaping society - we have expanded and aligned our global assets. This includes acquiring ABB's power grid business and GlobalLogic while converting Hitachi High-Tech into a wholly owned subsidiary. As a result, overseas assets now constitute 70% of Hitachi's total assets.
With essential assets in place, we can now drive the Social Innovation Business forward, unified under a One Hitachi umbrella. Our main objective is to ensure that all our businesses can collaborate seamlessly, ushering in a new Hitachi culture. This transformation journey is an ongoing process, leading us towards a significant phase of substantial and sustainable growth.
Hitachi is now growing for the next decade. To drive our expansion and achieve even higher growth rates, we have established a dynamic cycle with four key elements: evolving governance, continuously strengthening the portfolio, innovating technologies and business models, and making tireless efforts to increase corporate value.
As we promote our Social Innovation Business, Hitachi values the dialogue and co-creation with our diverse stakeholders, including customers, governments, municipalities, academic organizations, and research organizations. We will live up to the expectations of our stakeholders with results, changing our business focus to sustainable growth. We will continue to generate stable cash through organic growth and allocate it as investment in sustainable growth and shareholder returns in the form of stable dividends and share buybacks.
As of September 2023
President & CEO
Keiji Kojima
