Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (April 2010)
35 slides from Hitachi's investor day presentation, Apr 12, 2010
Slide 1: R&D strategy - Strategies to accelerate new growth
R&D strrategy gy - Strategies to acce elerate new growth - 12th April 2010 2 Shigeru AZ ZUHATA, D.Eng. Vice Presiddent and Executive Officer, General Manager, M Research & Development Group, Hitachi, Lttd. © 2010 Hitachi, Ltd. All rights reserved.
Slide 2: Contents
Contents 1. Corporate R&D orrganization 2. R&D to pioneer fu usion & environment business 3. Positioning for the e future 4. IP strategy 5. Summary © 2010 Hitachi, Ltd. All rights reserved.
Slide 3: Contents
Contents 1. Corporate R&D orrganization 2. R&D to pioneer fu usion & environment business 3. Positioning for the e future 4. IP strategy 5. Summary © 2010 Hitachi, Ltd. All rights reserved.
Slide 4: 1-1. R&D organization
1-1. R&D organization President Central Research Laboratory Research & Development Gr. Hitachi Gr. CTO Advanced Research Laboratory CTO: Chief Technology Officer I t ll t l P Intellectual Property t GGr. Hitachi Research Laboratory Company CTO acrross the Hiitachi Grou Te Power Systems Company Syste
Slide 5: 1-2. R&D scheme
1-2. R&D scheme Business target ２０１０ ２０１５ ２０２５ Management Focus on social in nnovation business strategy E Environmental Vision 2025 Company Business strategy roadmap Long-tterm technology devt. plan Research Sponsored p research Frontier o te & Adv. sponsored re esearch & Platform research (Company
Slide 6: 1-3. R&D investment
1-3. R&D investment ■ R&D expenditure 10% R&D expenditure 8% as % of Revenue 6% 5 2% 5 5.2% 5.2% 2% 4.6% 4.3% 4.3% 4.3% 4% Corporate labs 4.0% 3.8% 4.2% 2% 15％ enditure (billlion JPY) 0% 450 400 In-house 350 Hitachi Gr. Gr company 20％ ％ 300 company 250 Hitachi Group p 65％ 200 R&D expe 150 100 Breakd
Slide 7: 1-4. Improving return on investment
1-4. Improving return on in nvestment ■ R&D efficiency based on Hitachi Gr. co onsolidated financial data 6 p R&D expenditu / ure/Revenue ((%)) 1.00 Operating income/Revenue (%) 5 ROI 0.80 4 Operating （ i income ％） 0.60 3 R&D expenditure 0.40 2 1 0.20 0 0 00 0.00 2000 2001 2002 2003 2004 2005 2006 2
Slide 8: 1-5. Focusing on social innovation
1-5. Focusing on social inno ovation S Social i l inno i ovation ti business b i Social Social・ ・Industrial Industrial・ ・Urban n development systems Urban systems Transport T systems Cloud Smart grid Green mobility Eco-friendly Software data centers Fussion Nuclear power generation Network busiiness
Slide 9: 1-6. Prioritizing R&D investment
1-6. cPrioritizing R&D inve estment 1 Increased appropriation of corporate e funding to social innovation areas Corporate funds Corporate funding portfolio 30% 40% 4 40% 25% 55% 70% 20% 20% ■Social innovation FY200 09 ■Platform Company funds ■Other FY2010 2 Priority investment in social innovatiion
Slide 10: 1-7. Convergence of IT research facilities
1-7. dConvergence of IT research facilities ■ Consolidate C lid t IT research h facilities f iliti into i t the t Yokohama th Y k h area tto iincrease development efficiency Central Research IT business divisions Laboratory Net o k /Software Network /Soft a e Yokohama a area (660 researrchers) Serve
Slide 11: 1-8. Strengthen global R&D research hub
Fusion business 1-8. eStrengthen global R& &D ■ Regional R&D synchronized with expan nsion of social innovation business overseas North z Strengthen green mobility research America z Promotion of smart grid research (NEDO pilot project in NM, U.S.A.) Participation in NEDO pilot project in New w Mexi
Slide 12: 1-9. Integration of the Design Division
1-9. Integration of the Dessign Division ■ Contribute to business innovation “Visualization” of social 1. “Visualization” of social innovation businesss through innovation business innovative technology and market (people//lifestyle) focus 2. Introduction of human-centric design g to Inffo. & Teleco
Slide 13: Contents
Contents 1. Corporate R&D orrganization 2. R&D to pioneer fu usion & environment business 3. Positioning for the e future 4. IP strategy 5. Summary © 2010 Hitachi, Ltd. All rights reserved.
Slide 14: 2-1. Hitachi Group growth strategy
2-1. Hitachi Group growth strategy Focus on social innovation business 1. Expansion p of global g bu usiness 2 Fusion 2. F i off iinformation f ti & telecommunication t l i ti (IT) systems and power & industrial (PIS) systems 3. Expansion of environm mental business © 2010 Hitachi, Ltd. All rights r
Slide 15: 2-2. FY2010 R&D initiatives
2-2. FY2010 R&D initiativess To generate globally competitive c business Build up information platform Build-up ms for social infrastructure １ Facilitate business cooperation and coontribution to fusion business by １. consolidate IT research facilities in the Yokohama area D Develop l platform l tf
Slide 16: 2-3. Social infrastructure info. platforms
Information platforms 2-3. Social infrastructure in nfo. platforms ■ Collect massive volume of data from social infrastructure, transform into value-added information and control Social infrrastructure Manufacturing Smart Smart cities grid Green Urban planning Mobility Power infrastructure Data volu
Slide 17: 2-4. Network transport equipment
Information platforms 2-4. Network transport equipment ■ Highly reliable high quality next-genera ation transport equipment integrating various services in one infrastructure • World’s first operational service via delivery to t a domestic carrier (2009/8) Awarded 52 (FY2009) Best Ten New Produ nd u
Slide 18: 2-5. Virtualization technology supporting information processing platforms
Information platforms 2.5 Virtualization technology supporting info ormation processing platforms e Highly g y reliable information processing p g platforms p Storage capacity virtualization Server virtualization Providing users with virtual storage capacity Multiple business processes achieved on g
Slide 19: 2-6. Eco-friendly data centers
Fusion business 2-6. Eco-friendly data cente ers ■ Verification tests conducted on prototype e IT/Air conditioning Facilities collaborative control system Prototype configuration IT power control operation status IT-Facilities collaborative control Power control server Optimized Optimized Job monito
Slide 20: 2-7. Global rail services
Green mobility 2-7. Global rail services ■ 2009/12/13 UK high speed express (Cllass 395) commences operation (St. Pancras Station n, London) Features London Existing line 1. Designed to conform to European carriage New express line regulations 2. Aluminum carriage: “A-train” Ashford St it off D Stra
Slide 21: 2-8. Fortifying inverter R&D
Green mobility 2-8. Fortifying inverter R&D D ■R&D formation to expand business in hiighly efficient, efficient compact & low cost inverters Power device & modules Inverter research organization (2010/4) Inverter circuits & control Hitachi Research Laboratory Approx. 120 people Inverter design platf
Slide 22: 2-9. Li-ion batteries
Green Mobility 2-9. Li-ion batteries ■ Strengthen R&D to expand business in n high output, output high quality & safety Li- ion batteries for motor vehicles and ind dustrial applications Hitachi Research Laboratory Approx. 70 7 people ( (Adv. Batteryy Research Center,, estab. 2009/4) / ) Batteryy Sy
Slide 23: Contents
Contents 1. Corporate R&D organization 2. R&D to pioneer fusion & environment bus ess business 3. Positioning for the future 4 IP strategy 4. 5. Summary © 2010 Hitachi, Ltd. All rights reserved.
Slide 24: 3-1. Challenging R&D frontiers
3-1. Challenging R&D frrontiers 1910 1950 198 80 2000 2010～ Independent technology devt. Co-generation Global/Open innovation Electric locomotive E i Environment t/E Energy ED 15 (1924) MOS transistor Shinkan nsen traffic Innovative materials for manageement systemPattern batteries 5HP motor (1972)
Slide 25: 3-2. Global / open innovation
3-2. Global / open innovvation ■ Promotion of world world-leading leading advanced re esearch to pioneer next next-generation generation industry through concentration of knowledge witthin Japan and overseas Advanced storage device Analytical technology for semiconductor • Hitachi Cambridge Laborato
Slide 26: Contents
Contents 1. Corporate R&D organization 2. R&D to pioneer fusion & environment bus ess business 3. Positioning for the future 4 IP strategy 4. 5. Summary © 2010 Hitachi, Ltd. All rights reserved.
Slide 27: IP strategy
IP stra ategy -No. 1 IP strength in sociial innovation business – Strengthening oversea as patent applications (esp in Asian devveloping nations) (esp. © 2010 Hitachi, Ltd. All rights reserved.
Slide 28: 4-1. Globalization of IP activity (1)
4-1. Globalization of IP activity (1) ■ Strengthen overseas patent app plications • Total no. of patent applications: Overseas > Domestic • Shift focus from US to developing naations in Asia • Potential PCT patent applications forr potential markets Domestic: 53% Overseas: 47% Domestic: 50% 50%< Ove
Slide 29: 4-2. Globalization of IP activity (2)
4-2. Globalization of IP activity (2) ■ Strengthening portfolio in developing nations of Asia Patent applications in China (5 year total) Heavy Information & elect ical electrical Telecommunications Hitachi Gr. Co. Ａ Co. B Co. C Co. D Hitachi Gr. Co. E Co. F Co. G Co. H Patent applications in South-
Slide 30: 4-3. Current state of patent acquisition (1)
4-3. Current state of patent acquisition (1) ■ Example areas of IP activity focus for social innovation business Company FY 2010 FS/PPM theme Environmental/highly E i t l/hi hl efficient ffi i t th thermall Power Systems Company p power generation; Nuclear power g generation; Power device (SiC) Indu
Slide 31: 4-4. Current state of patent acquisition (2)
4-4. Current state of patent acquisition (2) ■ Environment-related technologyy patent portfolio ons or major natio nts in 2009 fo Highly functional materials Information & Telecommunications blicized paten Power & industrial No. of pub Hitachi Co. A Co. C Co. B Co. G Co. D Co. F Co. E Group 1) Total
Slide 32: 4-5. IP activity targets
4-5. IP activity targets ■ Differentiation Diff ti ti & prevention ti , contribute t ib t tto orders d ■ Secure degree of freedom for f business (cross licensing) ■ Income from patent fees © 2010 Hitachi, Ltd. All rights reserved. 31
Slide 33: Contents
Contents 1. Corporate R&D organization 2. R&D to pioneer fusion & environment bus ess business 3. Positioning for the future 4 IP strategy 4. 5. Summary © 2010 Hitachi, Ltd. All rights reserved.
Slide 34: Summary
Summary ■ New corporate R&D structu ure • Shift the R&D portfolio towa ards social innovation business • Consolidation of IT research h facilities & integration of the Design Division ■ Research strategy • Reinforce development of original technology to pioneer IT PIS ffusion IT-PIS i b business i •
Slide 35: © 2010 Hitachi, Ltd. All rights reserved.
© 2010 Hitachi, Ltd. All rights reserved.