Achieving a Turnaround to Get Back in the Black

In April 2010 President Obayashi, noting that it was time to “reap the fruit of the business restructuring,” called for the promotion of measures directed toward future expansion of business activities; acceleration of the growth strategy; strengthening of the business on a global scale; creation of new business opportunities; boosting operational efficiency through manufacturing reforms and strengthening the IT infrastructure; boosting consolidated business performance; improving cash fl ow management; and adhering to “the basics and the ethics.” Also, a Corporate Projects Center and New Business Development Dept. were established within the Corporate Strategy Division. The Center’s aim was to foster businesses, products, and services that would sow the seeds for future business expansion. The theme of “The first project” (support for pharmaceutical research) was also selected. Structural reforms related to the Naka Division led to a reorganization into companies engaged in product-related business and companies engaged in manufacturing. As part of an effort to integrate manufacturing, sales, and services related to semiconductor back-end equipment, Hitachi High-Technologies took over the die bonder business of Renesas Eastern Japan Semiconductor, Inc., assigning it to the Yamanashi Div. of Hitachi High-Tech Instruments Co., Ltd. Efforts to strengthen the business on a global scale included the absorption in May of Hitachi High-Technologies (China) Co., Ltd. by Hitachi High-Technologies (Shanghai) Co., Ltd. and the establishment in October of an electron microscope application lab in Maryland, U.S.A.

New activities included the first SPIRIT Meeting in June. These meetings were based on the idea that it is essential to create new strategies and business opportunities in order to ensure that the company achieves high growth, with an eye toward accelerating the growth strategy. They provided venues for the employees working to promote these goals to discuss themes such as “What are the shared values that we most cherish?” and “What is the essence of ‘high-tech’?” In all, 20 meetings were held and approximately 400 employees participated.

In July the second Executive Officers’ Brainstorming Session (BS10) was held. It examined a diverse range of issues, including achieving an optimal worldwide business management system and strengthening the manufacturing system; R&D strategy and system building; and strengthening corporate functions. Also, a global IT investment plan totaling approximately \10 billion was announced in order to strengthen information systems.

In December, in recognition of its contribution to the molecular analysis of the Itokawa asteroid carried out as part of the Hayabusa project of the Japan Aerospace Exploration Agency (JAXA), Hitachi High-Technologies received the Award for Distinguished Service to the Project from the Minister of Education, Culture, Sports, Science and Technology and the Minister for Space Development.

The efforts mentioned above, combined with an emphasis on overall cost-cutting measures, enabled Hitachi High-Technologies to achieve a turnaround in performance. The consolidated financial results for fiscal 2010 showed an increase in sales of 5.9% year-on-year to \653.4 billion, operating profit of \27.9 billion, and current net profit of \17.8 billion.

Launch ceremony of Yamanashi Div.
Launch ceremony of Yamanashi Div., Hitachi High-Tech Instruments Co., Ltd.
SPIRIT Meeting
SPIRIT Meeting