Hitachi 2005 Annual Report Download - page 16

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Hitachi, Ltd. Annual Report 2006
14
Q: There are many publicly owned companies in the Hitachi Group. What is your
strategy for taking group companies public? Also, please explain your capital
structure policy.
Chairman Shoyama: I believe that the strength of group companies lies in their independence and originality. While
respecting that, we also practice a policy of “strategically integrated management” so that we can draw on the collective
strengths of the group. This policy hasn’t changed.
Based on this approach, we consider initial public offerings as an important strategy for companies that can expand
their business and raise their corporate value by going public. We also strengthen certain businesses either through
integration with businesses of Hitachi, Ltd. or other group companies, or by making them wholly owned subsidiaries.
One example is the automotive systems business.
The approach we take depends on the characteristics of the business. We believe that strengthening businesses to
shape them into their best form ultimately leads to the greatest shareholder value.
Maximizing Shareholder Value
Q: Many companies in Japan are implementing anti-takeover measures.
What is Hitachi’s stance?
Chairman Shoyama: Our basic approach is to increase our corporate value by steadily improving our operating results.
We don’t have any predetermined defense against a takeover. However, should a particular party try to acquire a large
number of Hitachi shares, we will immediately take whatever measures we consider to be the most appropriate in the
circumstances. This would include evaluating the takeover proposal with the help of experts outside Hitachi, and entering
into discussions with the buyer. If a takeover bid has no advantages in terms of both Hitachi’s corporate value and for
shareholders, we would quickly decide on and execute specific measures as deemed necessary.
Q: Finally, please tell us what measures Hitachi is taking to maximize
shareholder value?
President Furukawa: The Hitachi Group’s current performance is by no means satisfactory. But by implementing the
initiatives we have discussed in this interview, we are committed to driving a steady improvement in our operating results
with an unwavering focus on profits by offering products and services demanded by customers and society.
Chairman Shoyama: The Hitachi Group’s founding credo is to contribute to society through the development of original
technology and products. To excite and inspire our customers and society, we will draw on our true collective strengths to
create even higher value. We believe that this will ultimately translate into higher shareholder value over the long term. We are
keenly aware that a company is a member of society. We therefore fully recognize the need to continue ensuring that we
conduct our business in conformity with laws and regulations while upholding the highest standards of ethics in management.
We are also aware that our corporate social responsibility extends to conducting business with due consideration for the
natural environment. I would like to thank shareholders and other investors for their support of Hitachi.
(June 2006)