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Hitachi, Ltd. Annual Report 2007 05
Based on this management policy, we are implementing various restructuring measures to ensure the
growth of the Hitachi Group. In fiscal 2006, we agreed to a comprehensive strategic global alliance with
GE to establish joint venture companies in the nuclear power business, which is expected to grow going
forward. In the HDD business, we will partially consolidate and integrate production operations. Meanwhile,
in flat-panel TVs, we have decided to establish production facilities in the Czech Republic and Malaysia.
These are just some of the bold restructuring actions we have taken or are taking.
In Japan, we have taken steps to strengthen the car information systems business by making Clarion
Co., Ltd. a subsidiary through a tender offer bid for its shares. We also subscribed to a tender offer from
Nidec Corporation for the shares of Japan Servo Co., Ltd., selling our shares in this company. In another
restructuring move, Hitachi Metals, Ltd. merged with subsidiary NEOMAX Co., Ltd.
Increasing Shareholder Value
In fiscal 2007, in line with our management policy, we will continue to grow the social innovation business
and implement structural reforms to strengthen operations in targeted fields. Furthermore, to build a solid
Group management structure, in addition to channeling management resources to operations in targeted
fields, we plan to step up our drive to globalize our businesses and pursue further synergies throughout
the Hitachi Group. By also increasing management efficiency through rigorous cost cutting, which includes
actions to improve our monozukuri capabilities, we aim to improve earnings.
Hitachi’s corporate credo is to contribute to society through the development of superior, original
technology and products. This credo is guiding us as we work to improve corporate value and thereby
meet the expectations of all our stakeholders, including shareholders, customers and employees. By also
contributing to the advancement of society, we believe that we can increase long-term shareholder value.
June 26, 2007
Etsuhiko Shoyama
Chairman and Director
Kazuo Furukawa
President, Chief Executive Officer and Director