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Hitachi

Hitachi High-Technologies GLOBAL

January 4, 2011

New Year's Greetings for 2011 from the President Leading the Way for Our Customers' Future as a Fast Moving Creator

Happy New Year.

2010 was a year of strenuous efforts to find a way out of the grave worldwide financial crisis of 2009 as governments implemented economic measures and companies made bold choices and took steps to centralize and drastically reduce costs in what truly was a struggle for survival.

The Hitachi High-Tech Group went into the red for the first time ever in FY2009 and, in response, we pressed forward with business restructuring. Those measures have paid off and FY2010 was a year marked by the accelerated development of new businesses and new products that will fuel our future growth and expansion. Everyone in the Group pulled together and continued to make every effort to achieve our objectives.

As you are all aware, 2011 will be a memorable year for us as it marks the tenth anniversary of the founding of Hitachi High-Technologies. We came into being on October 1, 2001 through the integration of Nissei Sangyo Co., Ltd.(the Hitachi Group's trading company), and the manufacturing functions of Hitachi, Ltd.'s Instruments Group and Semiconductor Manufacturing Equipment Group. This was followed by reorganizations and integrations with Sanyo High Technology Co., Ltd., Hitachi Electronics Engineering Co., Ltd., and the semiconductor manufacturing equipment business of Renesas Eastern Japan Semiconductor, Inc., and we have developed as a unique cutting-edge technology enterprise that possesses the three functions of manufacturing, sales, and services.

During these years we have promoted such activities for new growth as establishing our corporate vision of "becoming a global leader in high-tech solutions," making the transition to the "company with committees system," launching new business initiatives, and enhancing our global operations. In addition, we have developed the infrastructure to function efficiently as a unified group via such measures as consolidating our organization, reforming our business management system, and developing a global IT infrastructure.

And today, building upon our achievements of the past ten years, we take on a new challenge aimed at growth in the next ten years. I want to make Hitachi High-Technologies a company that leads the way for our customers as a fast moving creator.

As this new year begins, I have four messages for you aimed at making 2011 a new start for the Hitachi High-Tech Group.

1. The first is this: Let us accelerate our growth in the coming era and implement our corporate vision.

We are currently deciding on a new business strategy for the next decade aimed at realizing our corporate vision. If we are to lead the way for our customers as a fast moving creator, we need to clarify the kind of company we want to be, where we will compete, and what we are aiming for. Based on our current tasks and the anticipated business climate, I want to establish a general strategy for the company as a whole regarding such matters as business models and portfolios, the promotion of globalization, and the development of business infrastructure, and make it the shared foundation for the decision-making and actions of every employee in the Group. I will also establish a medium-term management plan that will start in FY2011 and finish in FY2013.

I want to fully integrate the dual strengths of our manufacturing and trading functions and further combine them with the overall strength of the Hitachi Group as the core competence for our Group to grow and develop as a business creator. We will exploit our ability to create business based on our technological development, manufacturing and service, and global marketing capabilities to create new business models and provide "one-stop solutions."

2. My second message is that we need to boost the strength of our integrated manufacturing, sales, and service capabilities and do business globally.

The core competence of the Hitachi High-Tech Group lies in effectively combining and integrating them. These three functions are our Group's greatest strength. I want to make maximum use of them. In doing so, it is important to see everything from the perspective of "total optimization." I want each one of you to not simply pour all your energies into your work but to also focus your efforts on sharing the objectives and targets of the Hitachi High-Tech Group as a whole, maximizing added value for the customer and also maximizing the Group's profits.

The task before us now is to further boost the strengths of our integrated manufacturing, sales, and service capabilities and to create a new business model that other companies cannot imitate, one that offers total solutions that include our proprietary products and systemization of those products with our trading products.

3. My third message is that we must contribute to improving the global environment by expanding our operations in the areas of the environment and new energy.

Today, global environmental issues represent a major challenge in the achievement of a sustainable society. The Hitachi High-Tech Group is taking steps to meet this challenge. The Group's basic stance on environmental issues is one of "aggressive environmental management." We will continue to work diligently on expanding our eco-related business by increasing our eco-products in order to reduce CO2 emissions and augmenting our eco-friendly products and environmentally-aware operations. In particular, the fields of the environment and new energy show remarkable growth and are ones in which our Group's ability to create new business will come into its own. I want us to capitalize on the strengths of our manufacturing and trading functions to expand business in these fields and to contribute to the social innovation businesses to which the Hitachi Group is committed.

4. My fourth and final message is: Let us embrace shared values and create a vibrant company that has a dream.

A company that achieves sustained strong growth has its own unique aspirations, the foundation of a company's character to which its employees look to, that are carefully passed on to all who work there. The aim of the Hitachi High-Tech Group's corporate culture policy is to be a company that "inspires confidence to tackle new challenges," one that is "vibrant and open to new ideas" and one that "encourages speedy and efficient performance through teamwork." It is essential that all employees share this corporate culture policy and implement it naturally in our daily actions if the Group is to continue to grow in ten or twenty years' time. We launched the SPIRIT Meetings in the last fiscal year as a practical measure to share and put into practice our shared values as a Group.

Incorporating shared values and high aspirations into our work will help each one of us to find fulfillment and achieve our dreams. Our personal growth is bound together with the growth of the Hitachi High-Tech Group and with social progress. I want us to all work together to make this a vibrant company that has a dream and creates new business.

The major premise in tackling these four points as a Group is that we are trusted as individuals, as an organization, and as a corporation, and that we faithfully adhere to ethics and follow the right course of action. Once more, I would like you to be well aware that it is when we reliably practice ethics and integrity and earn society's empathy and trust that the Hitachi High-Tech Group can achieve sustained growth along with our customers and society. I ask you to base your decisions and actions on these principles.

I wish you all the best for the New Year and hope that 2011 will be full of happiness and successfor you and the Hitachi High-Tech Group.

Media Inquiries

Public & Investor Relations Group,
Secretary's Office
Aiko Matsumoto
Tel: +81-3-3504-3258

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