Hitachi, Ltd. · TSE:6501

Hitachi — Investor Presentation (April 2011)

40 slides from Hitachi's investor presentation, Apr 14, 2011

  1. Slide 1: R&D strategy for global growth of social innovation business

    R&D strategy for global growth of social innovation business 14th April 2011 Shigeru Azuhata, Senior Vice President and Executive Officer, General Manager, Research & Development Group, Hitachi, Ltd. © 2011 Hitachi, Ltd. All rights reserved.

  2. Slide 2: Contents

    Contents 1. R&D strategy for new growth 2. Enhancing global R&D 3. Reorganization of domestic R&D 4. Summary © 2011 Hitachi, Ltd. All rights reserved.

  3. Slide 3: Contents

    Contents 1. R&D strategy for new growth 2. Enhancing global R&D 3. Reorganization of domestic R&D 4. Summary © 2011 Hitachi, Ltd. All rights reserved.

  4. Slide 4: 1-1. Management strategy [2012 Mid-term Mgmt. Plan]

    1-1. Management strategy [2012 Mid-term Mgmt. Plan] “Growth driven by Social Innovation business” & “Solid financial base” Social innovation business is made up of “Fusion of societal infrastructure & IT” and “Materials & Key devices” 1. Leverage Hitachi’s strengths to promote a global growth strate

  5. Slide 5: 1-2. Management strategy [Key business areas]

    1-2. Management strategy [Key business areas] Social Innovation Business Industrial, transportation and urban development systems Eco-friendly city (Water treatment) Construction Elevators and escalators Cloud machinery Green mobility Consulting Data centers Healthcare Energy Storage (Thermal, nucle

  6. Slide 6: 1-3. Group R&D strategy [Prioritizing investment]

    1-3. Group R&D strategy [Prioritizing investment] Concentrate investment on the Social Innovation Business Global Fusion Environment Strategic allocation of R&D investment Appropriate 50% of 1.2T JPY corporate total  FY 2010-2012 Total 600B JPY*  Major research examples: Set-up R&D structure accor

  7. Slide 7: 1.4 Group R&D strategy [Focusing investment]

    1.4 Group R&D strategy [Focusing investment] FY2012 R&D investment in social innovation business: 122% of FY2009* [billion JPY] [%] 500 6 Social innovation business Research investment (billion JPY) 450 As a % of revenue 400 5 600B JPY(FY2010-FY2012) 350 122% 4 300 220 3 Information & 250 180 Teleco

  8. Slide 8: 1-5. Corporate R&D strategy [Alignment with mngt.]

    1-5. Corporate R&D strategy [Alignment with mngt.] New R&D structure to facilitate global growth in social innovation business Basic strategy: Reinforce domestic laboratories & expand locally led overseas research Overseas research centers  Reinforce locally-led global research Double overseas rese

  9. Slide 9: 1-6. Corporate R&D strategy [Focusing investment]

    1-6. Corporate R&D strategy [Focusing investment] Focusing on corporate research funds to social innovation business Breakdown of Hitachi Group R&D investment In-house companies 15% Corporate Corporate funds laboratories 20% Company funds 30% Hitachi Group companies 65％ 70% 研究所の研究開発投資 65% of corpora

  10. Slide 10: 1-7. Corporate R&D strategy [Establish a control tower]

    1-7. Corporate R&D strategy [Establish a control tower] Technology Strategy Office To lead strategic allocation in social innovation business Plan technology strategies to achieve Hitachi Gr. management strategies  Propose Technology Roadmap for the Hitachi Group  Propose trans-Group strategic pro

  11. Slide 11: 1-8. Corporate R&D strategy [Schemes]

    1-8. Corporate R&D strategy [Schemes] Business target FY2010 FY2015 FY2025 Management Growth through social innovation business strategy Hitachi Business strategy roadmap Group Technology roadmap Research Sponsored research Frontier & Adv. sponsored research & Platform research Development (Company

  12. Slide 12: Contents

    Contents 1. R&D strategy for new growth 2. Enhancing global R&D 3. Reorganization of domestic R&D 4. Summary © 2011 Hitachi, Ltd. All rights reserved.

  13. Slide 13: 2-1. Global growth strategy [2012 Mid-term mngt. plan]

    2-1. Global growth strategy [2012 Mid-term mngt. plan] Promote and expand global localization Strengthen project control centers via local leadership Rigorously develop a more market-centric approach through local company leaders Grasp local values, standards and risks under local leadership Acceler

  14. Slide 14: 2-2. Global growth strategy [Overseas revenue]

    2-2. Global growth strategy [Overseas revenue] Aim for an overseas revenue ratio more than 50% in FY2012* [Revenue by Region] Asia, etc. Asia, etc. [13] [14] Japan China Emerging Japan Emerging [52] [11] markets [59] China markets Overseas [16] Overseas Europe ratio ratio [9] 41% 48% North Europe Ov

  15. Slide 15: 2-3. Reinforce overseas research centers

    2-3. Reinforce overseas research centers Strategy: Promote locally-led global research at the 4 worldwide research centers [Initiative 1]: Increase overseas personnel … FY2012: approx. 300 (2x) [Initiative 2]: Foster global R&D human resources … FY2012: 90%+ local staff, 30%+ doctorate holders [Init

  16. Slide 16: 2-4. Global research centers & staff increase

    2-4. Global research centers & staff increase Europe (Hitachi Europe Ltd.) China (Hitachi China R&D Corporation) USA (Hitachi America, Ltd.) ) Adv. physics  Social infrastructure  Storage systems  Power systems  Automotive equipment systems  Next-generation  Wireless  Rail system networks co

  17. Slide 17: 2-5. Global research strategy [China]

    Global 2-5. Global research strategy [China] Fusion Environment Participation in national social innovation projects Established Social Infrastructure Contribute to China’s Eco-city projects System Laboratory (Oct. 2010) <Tienjin, Guangzhou, Dalian>  R&D tailored for China Solution Technology Lab

  18. Slide 18: 2-6. Global research strategy [Europe]

    Global 2-6. Global research strategy [Europe] Fusion Environment Accelerate business in social infrastructure such as rail & power systems Thermal power business: CCS*1, A-USC*2 with local universities Provide complete rail solution from manufacturing to maintenance Promote open innovation in fronti

  19. Slide 19: 2-7. Global research strategy [U.S.A.]

    Global 2-7. Global research strategy [U.S.A.] Fusion Environment Contribute to US business Reinforce R&D for next-generation storage systems Development of eco-friendly vehicle-related technology Storage business: Develop cutting-edge virtualization technology through contact with customers in advan

  20. Slide 20: 2-8. Global research strategy [Asia]

    Global 2-8. Global research strategy [Asia] Fusion Environment Open a R&D center in India in 2011 Promote market-in style technology development for the Indian market  Mission: Open-up the way for IT business in India  Themes being undertaken: ① IT hardware & middleware for the Indian market ② Sto

  21. Slide 21: Contents

    Contents 1. R&D strategy for new growth 2. Enhancing global R&D 3. Reorganization of domestic R&D 4. Summary © 2011 Hitachi, Ltd. All rights reserved.

  22. Slide 22: 3-1. New R&D organization

    3-1. New R&D organization ● Until March 2011 ● From April 2011 R&D Group R&D Group Central Research Lab. Technology Strategy Office Advanced Research Lab. Hitachi Research Lab. Central Research Lab. Systems Dev. Research Lab. Hitachi Research Lab. Mechanical Eng. Research Lab. Production Eng. Resear

  23. Slide 23: 3-2. Aim of the new laboratories

    3-2. Aim of the new laboratories Speed-up decision making & facilitate synergy Central Research Promote fundamental to applied seamless R&D Laboratory Hitachi Enhance synergy through Research integration of social innovation Laboratory Yokohama Higher efficiency through convergence of IT Research re

  24. Slide 24: 3-3. Central Research Laboratory

    3-3. Central Research Laboratory Promote fundamental to applied seamless R&D Towards a world industry-leading CoE • Personnel: approx. 900 Technology development contributing to the expansion of the Mission social innovation business area Pioneering R&D of new areas based on future social needs Ne

  25. Slide 25: 3-4. Green IT devices

    3-4. Green IT devices Fusion Environment Overcome the limits in communication equip. using innovative optical technology Innovative optical transmission devices & modules* 100Gbps Optical transceiver Data Rate module [bps] Ultra high Optical Optical speed transmission interconnect Optical LSI (in LS

  26. Slide 26: 3-5. Fusion of diagnostics & treatment

    3-5. Fusion of diagnostics & treatment Fusion Supporting the precise diagnosis of tumors and appropriate therapy systems Diagnosis Treatment Imaging, In vitro Radiation, Ultrasound Open MRI Proton beam cancer therapy Metabolite analysis for tumor diagnosis using world’s highest vertical magnetic fie

  27. Slide 27: 3-6. Green IT systems

    3-6. Green IT systems Fusion Environment Environment conscious data centers drastically reducing power consumption Technology for collaborative control of IT and facilities Optimal Optimal IT load control air-conditioner control Power & temperature management Power consumption (W) 3000 No control 25

  28. Slide 28: 3-7. Hitachi Research Laboratory

    3-7. Hitachi Research Laboratory Enhance synergy through integration of social innovation Towards a globally top-class research • Personnel: approx. 1,200 center for social infrastructure R&D to support social innovation business such as Mission Social & Life infrastructures and underlying materials

  29. Slide 29: 3-8. Clean energy

    Global 3-8. Clean energy Fusion Environment Power generation technology for a prosperous and clean future Gas turbines Coal-fired thermal power <80MW-class (H-80)> <Adv. humid air turbine> <CO2 capture> Largest capacity 2-shaft gas turbine*1 3MW-class power generation systems Oxyfuel combustion*3 bu

  30. Slide 30: 3-9. Green mobility

    Global 3-9. Green mobility Fusion Environment Expanding global rail business by combining total MONOZUKURI power Analysis-led design MONOZUKURI technology Supercomputer Friction Stir simulation Welding (FSW) Collision absorption block Inverters & Batteries Rail maintenance Li-ion battery system UK h

  31. Slide 31: 3-10. Materials research

    3-10. Materials research Environment Lead business in high function materials through advanced materials research Cables with RF-ID Rare earth metal free Rare earth metal free magnets Cables motors Metals <Power><Rail> Key devices <Communication> materials <Environmental> <Low power consuming> <Low

  32. Slide 32: 3-11. Simulation technology

    3-11. Simulation technology Fusion Environment Raise product competitiveness by low costs, less design time & high performance FY2011: Enhance supercomputers ⇒ enable prototype-less, entire system simulation Large industrial pumps Dump trucks for mines Cavitation キャビテーション (white section) Strut （白色部）

  33. Slide 33: 3-12. Reducing environmental load

    3-12. Reducing environmental load Environment Promoting alternatives to rare metals through cutting-edge device, production technology and materials research Rare earth metal-less motor Recycling rare earth metal Rare metal-alternative glass ・低損失アモルファス鉄心 • Low-loss amorphous iron • Dry-type low-envi

  34. Slide 34: 3-13. Yokohama Research Laboratory

    3-13. Yokohama Research Laboratory Higher efficiency in IT research & fusion of Monozukuri through convergence Towards a world-leading IT research center • Personnel: approx. 1,100 Mission System technology supporting IT & Infrastructure Fusion business and IT platform based Monozukuri technology Fu

  35. Slide 35: 3-14. Data center operation management systems

    3-14. Data center operation management systems Reducing data center operation costs by automatic IT resource allocation technology Cloud-type data centers [Background] Increasing server operation costs Total server cost Automatic IT resource allocation technology (B$) Power & air- conditioning costs

  36. Slide 36: 3-15. Autonomous decentralized systems

    Global 3-15. Autonomous decentralized systems Fusion Environment Smart grid application of autonomous decentralized systems technology from rail systems Automated metering wireless network Autonomous architecture • Each subsystem can function Highly reliable automatic autonomously reading & collecti

  37. Slide 37: 3-16. Low cost production technology

    Global 3-16. Low cost production technology Fusion Environment Wide application of cutting-edge production technology using IT for cost competitiveness Production management Global SCM Production fluctuation simulation technology Multi-site multi-indices (cost, delivery date, based on statistical an

  38. Slide 38: Contents

    Contents 1. R&D strategy for new growth 2. Enhancing global R&D 3. Reorganization of domestic R&D 4. Summary © 2011 Hitachi, Ltd. All rights reserved.

  39. Slide 39: 4. Summary

    4. Summary A new R&D structure for global growth in social innovation business Asia (Hitachi Asia Ltd.) Europe (Hitachi Europe Ltd.) Central Research Lab. Green IT devices Data Centers Construction Equipment Cloud Computing Green mobility Healthcare Smart cities Elevators/ Consulting Escalators Ener

  40. Slide 40: © 2011 Hitachi, Ltd. All rights reserved.

    © 2011 Hitachi, Ltd. All rights reserved.

Hitachi — Investor Presentation (April 2011) on 6ix