Hitachi 2005 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2005 Hitachi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

Hitachi, Ltd. Annual Report 2006 11
Q: As Hitachi’s new president, how do you intend to manage the company?
President Furukawa: Upon my appointment as president, I was reminded of the founding spirit of Hitachi, which is
encapsulated by the words, “harmony,” “sincerity” and “pioneering spirit.” I have reaffirmed the importance of this spirit even
today with three words that I hope will define my presidency: trust, challenge and leap forward. With respect to the founding
spirit, I would like to single out pioneering spirit, which is at the heart of the will to take on challenges. To leap forward, we
must rise to the challenge in three aspects of our operations: innovation, globalization and capturing synergies.
I believe that Hitachi should be an aggregate of businesses that underpin people’s lives. That is, it should be an
aggregation of social infrastructure, industrial infrastructure and life infrastructure, each combined with information infra-
structures to produce synergies and create optimal value, what we call “uVALUE,*2” for customers and society. In other
words, Hitachi should be a business entity that utilizes its true collective strengths to add considerable value that only
Hitachi can deliver through innovations from the combination of experience, knowledge and expertise drawn from a broad
range of business areas.
From a medium-term perspective, I am convinced that the course of the business structural reforms under
“i.e.HITACHI Plan II,” was correct. This restructuring is producing results. We have also made progress with respect to
consolidated management and strengthening of group governance. Looking ahead, though, we will redouble our efforts to
achieve as soon as posible the goals that we failed to meet during the medium-term plan.
*2uVALUE
uVALUE comprises the letter “u,” which stands for ubiquitous, and the word “value.” uVALUE is value created for customers in a ubiqui-
tous information society by interconnecting business, lifestyles and communities. Hitachi is determined to create this value with custom-
ers as their “best solutions partner.”
Business Structural Reforms and Globalization
Q: What progress has Hitachi made with business structural reforms?
Chairman Shoyama: Under “i.e.HITACHI Plan II,” we implemented a host of structural reforms to make our businesses
more competitive. In the past fiscal year, we announced three major initiatives, in particular.
One was the April 2006 formation of a company called Hitachi Plant Technologies, Ltd. through the merger of
Hitachi Plant Engineering & Construction Co., Ltd., Hitachi Kiden Kogyo, Ltd. and
Hitachi Industries Co., Ltd. with part of Hitachi, Ltd.’s Industrial Systems Group.
This integration of resources was made to strengthen the Hitachi Group’s com-
petitiveness in the social and industrial infrastructure business.
The second major reform was in the automotive systems field. We made Hitachi
Mobile Co., Ltd. a wholly owned subsidiary of Hitachi, Ltd. also in April 2006.
Formerly a publicly owned company, Hitachi Mobile repairs and sells automotive
components as well as provides related maintenance services. We
made this move to create an integrated framework for
automotive systems that extends from development
to manufacturing through engineering services.
Hitachi, Ltd. Annual Report 2006 11