HITACHI Ltd.

BUSINESS
REPORT
 HITACHI Ltd.

INTRODUCTION
 Hitachi was founded in 1910 by electrical engineer Namihei Odaira.

 Hitachi Ltd. Is a Japanese multinational conglomerate corporation.

 Headquartered in Chiyoda, Tokyo, Japan.

 Hitachi is listed on the Tokyo Stock Exchange and Nagoya Stock

Exchange.

 The company's first product was Japan's first 4-kilowatt (5 hp) induction
motor, initially developed for use in copper mining.

 Hitachi conducts business ranging from IT, including AI, the Internet of
Things, and big data, to infrastructure.
 Mid-term Management Plan 2024
Three Growth Drivers
VALUE CREATION
Digital Green
Hitachi will lead global GX (Green
With an understanding of management Transformation) by switching to renewable
issues faced by customers, Hitachi will energy, electrification, energy conservation, and
contribute to the enhancement of customer
automation, and contribute to the realization of
business value through a cycle of co-
creation with customers, which involves a sustainable society. Hitachi will proactively
designing, implementing, managing, and invest in the green field to contribute to an
maintaining solutions, while working to annual reduction in CO2 emissions.
resolve subsequent issues.

Innovation
Focusing on its vision for the world in 2050,
Hitachi will identify areas where R&D is
required while striving to create innovative
technologies and products contributing to
the resolution of social issues. At the same
time, we will increase the speed of
innovation by further accelerating
collaborations with promising startups,
government and academia.
 MISSION

HITACHI GROUP IDENTITY

“Contribute to society through the
development of superior, original technology
and products.”

VALUES
“The Values reflect the Hitachi Founding Spirit,
which was shaped by the achievements of
company predecessors as they worked hard to
fulfill Hitachi's Mission.”

VISION
“Hitachi delivers innovation that answers
society’s challenges with the company’s
talented team and proven experience in global
markets.”
 Hitachi Social
Innovation
To resolve a wide range of social issues through utilizing “IT
(Information Technology),” “OT (Operational Technology),”
“Products,” and “Lumada” which Hitachi has developed over the
years. This is Hitachi’s Social Innovation Business.

According to Hitachi Social Innovation, these changes can occur:-

 Vehicles can be environmentally friendly.
 Renewable energy can be stable.
 Our modern lives can be sustainable for the planet.

Hitachi Social Innovation aims to change the perspective. To build a

sustainable society Hitachi is inspiring the world through Digital and
Green Technologies. Hitachi commits to helping achieve a
sustainable world and people's well-being by utilizing digital and
green technologies. It also expresses Hitachi’s belief in changing our
old perspective on social issues.
 BUSINESS STRATEGY IN INDIA
Hitachi is currently promoting the global rollout of the Social Innovation Business based on the 2015
Mid-term Management Plan, and has set a goal of increasing the ratio of overseas revenues, which
was at 45% in FY2013, to more than 50% by FY2015. In India, Hitachi is currently expanding its
business based on the "India Business Strategy 2015" that was created in December 2012.
Through the rollout of the Social Innovation Business in keeping with these policies, Hitachi will
contribute to the development of Indian society.
(1) Government-led efforts to put in place and maintain social infrastructures.
(2) “Make in India”.
(3) “Sell to the World”.

By promoting the above measures, Hitachi is planning to increase the number of Group employees in
India in FY2015 to approximately 13,000. It will also continue its plan to implement investments
totaling 70 billion yen over the four years from FY2012 to FY2015.
• Sustainability 2030 is our strategic plan that summarizes our main commitments to
act and drive business in a responsible, eco-friendly, sustainable way.
• Based on four pillars – Planet, People, Peace, and Partnerships
- our strategy draws from the UN’s Sustainable Development Goals (SDGs). Each pillar
has corresponding targets that drive our business to contribute social, environmental
and economic value.
Planet
Carbon-neutral in our own operations
 50% reduction of CO2 equivalent
emmissions2 along the value chain
 50% reduction of waste disposed
 25% reduction of freshwater use
 25% reduction of hazardous substances
and chemicals
People
• Zero harm
• Top quartile health absence rates
• Life-long learning culture
• Increase female diversity from 19% to 25% by 2025

Peace Partnerships
• Zero incidents of corruption and bribery • Increase involvement in multi-stakeholder partnerships
Financials
Performance in January 2021 - March 2022

Following the turbulence and the slowing down of market in the first half, the nation and
business witnessed a return to normalcy with resuming demand from utilities and
industries. While tempered by geopolitics and supply chain constraints, your company
delivered a strong, credible performance over the 15-month period under consideration.

Highlights (15 month) Key ratios

Particulars Amount (INR Effective tax rate 26.46%

crore)
Total orders received 4,548.1 Earnings per share 47.99
(INR)
Revenue 4,950.9 Debtors turnover 3.4
Profit Before Tax after 276.6 Inventory turnover 8.2
exceptional items
Profit After Tax 203.34 Current ratio 1.1
 Milestones achieved by Hitachi Energy
India
•100 percent fossil-free electricity
consumption in operations
•Set up an ESG (Environment, Social,
Governance) committee of directors to
Order split Order split track our performance and shareholders’
by by value
sector offering •Implemented green power for project sites,
negating carbon footprint of 4,000 liters of
diesel a year
•Recycle 70 percent of waste and co-
processed 155 tonnes of scrap
•Commissioned India’s largest natural
47.4% 24.8% 27.8% 76.2% 17.4% 6.4% ester-filled power
Products Projects Services
Utilities Industries
Transport &
Infrastructure transformer in the Mumbai transmission
network
 As a large multinational corporation, Hitachi has

How Hitachi Company

taken several measures to respond to the COVID-19
pandemic. Here are some examples of Hitachi's

Responding to the Covid-19

response:

Ensuring employee safety: Hitachi has implemented

measures to protect its employees, including
remote work and staggered work hours to promote
social distancing.
 Contributing to society: Hitachi has donated medical supplies and equipment to
support healthcare workers and has contributed to research on COVID-19.

Developing new technology: Hitachi has been developing new technologies to help
combat the pandemic, such as a contactless elevator system to reduce the risk of
infection.

Supporting customers: Hitachi has provided support to customers affected by the

pandemic, including financial support and technical assistance to help companies
adapt to the changing business environment.

Ensuring business continuity: Hitachi has taken steps to ensure that its operations
continue smoothly during the pandemic, such as strengthening its supply chain and
implementing contingency plans.

Overall, Hitachi's response to the COVID-19 pandemic has focused on protecting its
employees, contributing to society, developing new technology, supporting
customers, and ensuring business continuity.
 Hitachi is a diversified company with a wide range of products and services. Here are
some examples of Hitachi's products:
PRODUCT DETAIL Information Technology: Hitachi offers various IT products and services such as servers,
storage systems, and software solutions. For example, Hitachi's Virtual Storage Platform
(VSP) is a high-performance storage system that can be used to store and manage large
amounts of data.
Power Systems: Hitachi manufactures a range of power systems including nuclear power
plants, thermal power plants, and renewable energy systems. For instance, Hitachi's H-25
gas turbine is used in power generation plants around the world.
Construction Machinery: Hitachi produces a range of construction machinery such as
excavators, wheel loaders, and dump trucks. The Hitachi ZX350LC-6 excavator is a high-
performance machine that is used in various construction projects around the world.
Automotive Systems: Hitachi provides various automotive products and services such as
electric powertrain systems, engine management systems, and advanced driver assistance
systems. For example, Hitachi's lithium-ion battery systems are used in hybrid and electric
vehicles.
Healthcare: Hitachi offers various healthcare products and services such as diagnostic
imaging systems, clinical analyzers, and medical IT systems. The Hitachi Aloka ProSound
Alpha 7 ultrasound system is a high-end diagnostic imaging system that is used in medical
facilities around the world.
These are just a few examples of Hitachi's products. Hitachi's diversified portfolio allows
the company to serve various industries and markets, and it continues to innovate and
develop new products to meet changing customer needs.
 Hitachi SWOT Analysis
Strength Of Hitachi Weakness of Hitachi
 Reliable suppliers – It has
 High Attrition Rate in
a strong base of reliable Work Force.
suppliers of raw
materials.
 The marketing of the
products left a lot to be
 Product Innovation desired.
 Superb Performance in
New Markets.
 Need more investment in
new technologies.
 Good Returns on Capital
Expenditure.
 Organization structure is
only compatible with the
 High Level of Employee present business model.
Satisfaction.
 Investment in Research
and Development.
Opportunities for Hitachi Threats Hitachi
 The new technology
provides an opportunity  Company is operating in
numerous countries.
to practice a
differentiated pricing
strategy in the new  No regular supply of
market. innovative products.
 Shortage of skilled
 Organization’s core
competencies can be a workforce.
success in similar other
 Rising raw material.
products fields.
 New trends in the
consumer behavior can
open up new markets for
Hitachi.

Internal Strategic Factors External Strategic Factors

 CONCLUSION
Hitachi is a diversified global company with a strong focus on innovation and a commitment to
contributing to society. It values harmony, sincerity, customer satisfaction, ethics, and compliance.
Hitachi's vision is to create a sustainable society through its Social Innovation Business. Hitachi's
business strategy involves leveraging its expertise in IoT, big data, and AI to create new value for
customers. The company is committed to sustainability and has set ambitious goals to reduce its
environmental impact. Hitachi has reported strong financial results, despite the challenges of the
COVID-19 pandemic. Its products span a wide range of industries, including information technology,
power systems, construction machinery, automotive systems, and healthcare.