Moving to a New Stage Five Years after the Company’s Establishment
-Attaining High Profitability-
Business performance grew substantially thanks to efforts such as the Operational Reform Project. Sales and profits reached new highs in the consolidated financial statement for fiscal 2004, with operating profit of \30 billion and current net profit of \15 billion. Sales declined slightly in fiscal 2005 as the market entered a period of adjustment, but operating profit nevertheless grew to \36 billion and current net profit to \19.2 billion.
In 2006, which marked the fifth anniversary of the establishment of Hitachi High-Technologies, a “medium-term management plan” to run through fiscal 2008 was announced with the aim of moving to a new stage of rapid growth. It set ambitious targets of \1 trillion in consolidated sales and \50 billion in consolidated operating profit, and set as a challenge “attaining high profitability exceeding the market growth rate.”
Goals under this basic policy were, with regard to the company’s products, “to strengthen R&D to develop excellent products more quickly” and, with regard to the company trading operations, “to develop a new business model by adopting a medium-to long-term outlook and investing in operations.”
Previously, in May 2005, a new factory had been built at the Naka Division, and production of wafer fault detection equipment was moved from the Saitama Division of Hitachi High-Tech Electronics Engineering to the Naka Division. Hitachi High-Tech Electronics Engineering subsequently become the Fine Technology Products Business Group of Hitachi High-Technologies, and in April 2007 a new factory building to produce LCD manufacturing and inspection equipment for eighth-generation and later LCD panels was completed at the Saitama Division.
In another example of the aggressive investment in key fields that took place during this period, in February 2008 Hitachi High-Tech Instruments Co., Ltd. built a new factory for chip mounters in Kumagaya, Saitama Prefecture.
Now the focus was on achieving further rapid growth.
In April 2007 Hidehito Obayashi assumed the post of Representative Executive Officer, President, Chief Executive Officer, and Director. To meet the targets of the medium-term management plan he stressed that Hitachi High-Technologies must be “deliberate in council, and decisive in action,” carefully examining market trends and responding with effective measures in rapid succession. In other words, speed and agility were key, and management should emphasize speed and a hands-on, on-site perspective. Also important were strengthening consolidated management, value creation and value recovery, and ensuring that Hitachi High-Technologies is acknowledged as a force to be reckoned with by the competition. Two key slogans were “adhere to basics and ethics” and “right and wrong before profit and loss.”
Business performance was reported in the consolidated financial statement for fiscal 2006 as sales of \951.6 billion, operating profit of \45.1 billion, and current net profit of \26.1 billion, and in the consolidated financial statement for fiscal 2007 as sales of \943.1 billion, operating profit of \49.1 billion, and current net profit of \26.9 billion. This meant that new sales records had been set the past six years running, and that sales and operating profit were very close to the targets of \1 trillion and \50 billion, respectively.
Business performance (fiscal 2004 to 2007)
Wafer inspection equipment manufacturing site at new factory of Naka Division (Building E)