Becoming Stronger by Strengthening the Essentials
-Aiming for Further Rapid Growth-

The main thrust of the Operational Reform Project involved concentrating resources on four core businesses (semiconductor manufacturing and evaluation equipment, life science-related devices, information and industrial systems, and trading operations), developing a more muscular management organization, and optimizing the corporate group overall.

In April 2004 the Flat Panel Display & Hard Disk Manufacturing Systems Sales Division and Nanotechnology Products Business Group were newly established. In addition, Hitachi High-Technologies acquired all the stock of Hitachi Electronics Engineering Co., Ltd. and made it a subsidiary. (In April 2006 Hitachi High-Tech Electronics Engineering underwent an absorption-type merger with Hitachi High-Technologies and was reorganized as the Fine Technology Products Business Group.) These moves were taken to expand the product lineup of the semiconductor manufacturing and evaluation equipment business while also incorporating the LCD manufacturing and evaluation equipment business and hard disk manufacturing and evaluation equipment business. In particular, the LCD manufacturing equipment business of Hitachi High-Tech Electronics Engineering would end up making a substantial contribution to the bottom line of the corporate group as a whole as a result of rapid growth in the market for LCD televisions and LCD displays.

In April 2005 a Marketing & Planning Division was newly established within the Business Group to provide strengthened medium- and longterm strategic decision-making capabilities, and a CDB (Cross-Division Business) Development Group was added to promote new businesses arising from companywide synergies.

Organizational and systemic reforms aimed at a more muscular management organization included the launch in June 2004 of a new wage and treatment system and systemic unification efforts such as the revisions to the retirement allowance and pension system in September of the same year. These laid the groundwork for a more dynamic corporation. To strengthen regional strategic functions within Japan, a new Regional Branch Office for West Japan Area and a same office for Kanto Area were established in April 2005. In addition to consolidating the functions of the regional branch offices, this move was designed to enable the generation and implementation of planning proposals tailored to local characteristics and needs. Also, measures were taken to strengthen cash fl ow management.

Back in April 2004 a project to obtain certification under the ISO 9001 quality management system was launched. By July the following year the Head Office sales operations had been certified, and in July 2006 certification of all sales facilities in Japan had been completed. In April 2005 a CSR & Environmental Promotion Department was established, tasked with issuing annual reports on Corporate Social Responsibility (CSR) in addition to the environmental reports Hitachi High-Technologies had been issuing since2002. In July 2004 an Internal Control (COSO) Promotion Project was launched.

In the area of group optimization, group companies in Japan were reorganized in order to concentrate resources. In April 2004 Nissei Electronics, Ltd. and Nissei Engineering Inc. were merged to form Hitachi High-Tech Trading Corp., and in July Instruments Technology Co., Ltd. and Hitachi Naka Instruments Co., Ltd. were merged to form Hitachi High-Tech Manufacturing & Service Corp. Then, in June 2007, Hitachi High-Tech DE Technology Co., Ltd. and Hitachi High-Tech Instruments Service Co., Ltd. merged to form Hitachi High-Tech Engineering Service Corp.

To enhance business mobility, Hitachi High-Technologies absorbed Nissei Science, Ltd. in 2005, Hitachi High-Tech Electronics Engineering Co., Ltd. in 2006, and Hitachi High-Tech Science Systems Corp. in 2007. During this period the trend toward having the names of all group companies begin with “Hitachi High-Tech” advanced, clearly showing the orientation toward group management.

As part of efforts to better organize and strengthen group companies overseas, in April 2005 the branch offices in Seoul, South Korea, and Taipei, Taiwan, were incorporated locally (as Hitachi High-Technologies Korea Co., Ltd. and Hitachi High-Technologies Taiwan Corp., respectively) and their sales systems strengthened. In May 2005 the trading company Hitachi High-Technologies (Shanghai) Co., Ltd. was established as a wholly owned subsidiary of Hitachi High-Technologies Hong Kong Limited, and in July Article in May 27, 2005, evening edition of Nihon Keizai Shimbun announcing policy of not reducing R&D spending even when profits decline Annual reports on Corporate Social Responsibility 2005 Trading Activities COLUMN 2 Plasma TV Back Cover Business 17 Hitachi High-Technologies (China) Co., Ltd. was established. Subsequently, the Vietnam Branch Office (April 2006) and Moscow Branch Office (April 2007) opened their doors.

In April 2005, with the aim of a unified operation system integrating overseas sales and services functions, Hitachi High Technologies America, Inc. merged with Hitachi Electronics Engineering (America), Inc., which had been undertaking sales and services of magnetic disk manufacturing and inspection equipment. In April 2006, in Europe, Asia, and China, eight maintenance and services companies were merged with core companies in their regions. Then, in October 2007, the London Branch Office was made a branch of Hitachi High-Technologies Europe GmbH, and in 2008 Hitachi High Technologies America, Inc. was made a wholly owned subsidiary.

Shonan Division of Hitachi High-Tech Electronics Engineering Co., Ltd.
Shonan Division of Hitachi High-Tech Electronics Engineering Co., Ltd., which was an industry leader in the LCD and Hard Disk manufacturing systems fields
Article in May 27, 2005, evening edition of Nihon Keizai Shimbun
Article in May 27, 2005, evening edition of Nihon Keizai Shimbun announcing policy of not reducing R&D spending even when profits decline
Annual reports on Corporate Social Responsibility 2005
Annual reports on Corporate Social Responsibility 2005