business strategy of automotive systems - hitachi · business strategy of automotive systems -...

Business Strategy of Automotive SystemsBusiness Strategy of Automotive Systems-- Actions for 2010 Actions for 2010 --

December 17, 2003Taiji HasegawaExecutive OfficerPresident & Chief Executive Officer, Automotive SystemsHitachi, Ltd.

-1-

Automotive SystemsAll Rights Reserved, Copyright (C) 2003, Hitachi, Ltd. -2-

1 Automotive Products Business in Hitachi

2 Market Environment & Hitachi’s Business Strategy

3 Actions for Future Growth Market

4 Summary

Table of Contents



2


4 Summary

Table of Contents

Market Environment & Hitachi’s Business Strategy

Automotive products business is one of the targeted businesses.

New Era Lifeline SupportSolutions

New Era Lifeline SupportSolutions

Global Products IncorporatingAdvanced Technology

Global Products IncorporatingAdvanced Technology

April 2003: The group name was changed from “Automotive Products”to “Automotive Systems.”

Automotive Products Business in HitachiExamples of Targeted Businesses in “i.e. HITACHI Plan II ”

SAN/NAS storage solutionsbusinessBiomedical business

Urban redevelopment business

Strategic outsourcing business

Railway systems business

µ-chip solutions business

HDD business

Automotive products businessAutomotive products business

Semiconductor productionequipment business

Battery business(lithium-ion batteries for automobiles,fuel cells for mobile devices, etc.)


Hitachi has more than 70 years experience in automotive products business.1930Began developmentof electrical equipmentfor vehicles

1964 1968Electronic Fuel Injection System(Response to emissions regulations)

1970s 1985-


Reasons to Focus on Automotive Products Business

Founded Automotive Products Div.Established Sawa Works

Began overseasproduction

Reasons to now focus on automotive products business

Tighter Regulations onEnvironment & Safety

Further Development ofElectric-Powered & Computerized Vehicles

Engine PowertrainMechanical/Hydraulic ControlUnidirectional Communications

Electric PowertrainElectronic Control (X-By-Wire)High-Speed/Large-Capacity, Interactive Communications

Motor and inverter controls, semiconductors, IT, Motor and inverter controls, semiconductors, IT, HDDsHDDs, new materials, etc., new materials, etc.

We will combine our technologies and know-how for hardware and software to provide system solutions for technical issues related to the automotive industry.



2


4 Summary

Table of Contents


Automotive SystemsAll Rights Reserved, Copyright（C） 2003, Hitachi, Ltd. Automotive SystemsAll Rights Reserved, Copyright (C) 2003, Hitachi, Ltd. -7-

(million units/year)

1995 20102000 2005

50.057.4 60.7

65.7

Japan

North America

Europe

Others

China

Source: “Automotive Years Hand Book 2002-03” and Hitachi estimates from several production forecasts

Vehicle Production Trend by 2010

CAAGR*(1995 2010)1.8%1.8%

Due to the market growth in China, production isexpected to reach 65.7million units in 2010.

(million units/year)

1995-2010CAAGR

Total 50.0 57.4 60.7 65.7 1.8%Others 6.8 7.7 9.5 11.3 3.4%China 1.4 2.1 5.0 6.2 10.4%

Europe 17.3 19.8 20.2 21.2 1.4%N. America 14.4 17.7 16.1 17.2 1.2%

Japan 10.1 10.1 9.9 9.8 －0.2%

20101995 2000 2005

CAAGR*(1995→2010)

3.4%3.4%

10.4%10.4%

1.4%1.4%

1.2%1.2%

－－0.2%0.2%

Growing Worldwide Vehicle Production

*CAAGR:Compound AverageAnnual Growth Rate

Automotive SystemsAll Rights Reserved, Copyright（C） 2003, Hitachi, Ltd.

Targeted Areas of Hitachiapprox. 37 trillion yen

Automotive Products Market (Worldwide)

Our business areas will expand in the near future through the further development of electric-powered & computerizedvehicles.

Engine-RelatedComponents

Electrical Equipment& Electronic Parts

Wire Harnesses/AutomotiveInstrumentation

Drive Trains,Transmissions& Steering Gears

Suspensions& BrakesCar Audios

Auto Bodies

Air Conditioners

(trillion yen/year) Others

19.1

10.8 5.1

12.7

5.0

11.3

1.42.9

1.8

(2002)70 trillion yen

Automotive Products Market and Targeted Areas of Hitachi

Automotive SystemsAll Rights Reserved, Copyright (C) 2003, Hitachi, Ltd. -8-Source: “Japanese Automotive Parts Industry ’01/02” and Hitachi estimates from several reports

Automotive Systems

2006-

InformationEnvironment

Safety&Comfort

DIG

SULEV

Clean EnvironmentClean Environment

2004

2002

2000

42V

Auto MT

X-by-Wire

Reduction of COReduction of CO22

ACC

Telematics

ITSITSLarge-CapacityCommunications

Hybrid Electric Vehicle

Electric Vehicle

Fuel CellElectric Vehicle

AT

VICSCar Navi.ﾞVDCABS

BBWSBW

ABS: Anti-Lock Brake System AT: Automatic Transmission ACC: Adaptive Cruise Control BBW: Brake By WireMT: Manual Transmission SBW: Steer By WireSULEV: Super Ultra-Low Emission Vehicle VDC: Vehicle Dynamics ControlVICS: Vehicle Information and Communication System

All Rights Reserved, Copyright（C） 2003, Hitachi, Ltd.

ITS Advanced Vehicle Control

LAN

Source: Hitachi estimates from several reportsAutomotive SystemsAll Rights Reserved, Copyright（C） 2003, Hitachi, Ltd.

Market Needs and Technology TrendsE

nviro

nmen

tS

afet

yIn

form

atio

n

Market Needs Technology Trends

Exhaust Emissions

Fuel Consumption

vs Reg. in 1983HC: 1/40NOx: 1/20

1995 201023% improvement　

SafetyPrecautions

Fatal Accidents－50%

Convenience& Comfort

･Heavy Traffic1/5

･AdvancedCruise Assist

･Ubiquitous

Collision AvoidanceCollision Avoidance


Reduction of Braking DistanceReduction of Braking Distance

Regeneration/CooperationRegeneration/Cooperation

(year)

Vehicle InformationSystem

Drive Control System

Electric PowertrainSystem

Engine ManagementSystem

Engine ControlDirect Injection forGasoline & Diesel Engines

Automotive Systems

1

2

3

4

Focusing Area: - “3 Segments / 4 System Businesses”En

viro

nmen

tSa

fety

Info

rmat

ion

Market Needs

Exhaust Emissions

Fuel Consumption

vs Reg. in 1983HC: 1/40NOx: 1/20

1995 201023% improvement

Safety Precautions

Fatal Accidents－50%

Convenience & ComfortHeavy Traffic 1/5Advanced

Cruise AssistUbiquitous


Technologies to Meet Needs

Hybrid ElectricVehicles

Fuel CellElectricVehicles

Motors,Inverters,Batteries,etc.

Adaptive Cruise Control,Lane Keeping

Electro Mechanical BrakeElectric Power Steering,Suspensions

Onboard NavigationSystems, VICS

Telematics, InteractiveCommunications

Hitachi’s Activities

ITS Advanced Vehicle C

ontrol

Source: Hitachi estimates from several reports


Automotive Parts Suppliers Electronic ManufacturersEnvironment

Automotive Parts Suppliers IT CompaniesSafety

Information

1 2

3 4

Semiconductors, Functional Materials & Components

Players in Each Business Areas



Safety

1 2

3 4

Semiconductors, Functional Materials & Components

Business Operation System for ITS Advanced Vehicle Control


ITS AdvancedVehicle Control

Information

Hitachi Hanshin ElectricHitachi UnisiaAutomotive

Hitachi Shin-KobeElectric Machinery

RenesasTechnology

Hitachi UnisiaAutomotive

Tokico HitachiXanavi

InformaticsHitachi

Hitachi GlobalStorage Technologies

HitachiCable

Hitachi PowderedMetals

HitachiMetals

HitachiChemical

:Hitachi, Ltd. and Automotive systems’ subsidiary and affiliated companies

Environment


Hitachi, Ltd.Research &

Development Group

Advanced Research Laboratory

Leading-Edge BasicStudies

SystemsDevelopmentLaboratory

SystemsSoftware

Research and Development

Production EngineeringResearch Laboratory

Production Engineering

Mechanical EngineeringResearch Laboratory

Mechatronics

Hitachi ResearchLaboratory

Energy, Industrial Engineering,Environment,Materials

Central Research Laboratory

Information andTelecommunications


Holding of “Strategic Business Meeting” on regular basis[Aim] To promote strategically important products to be developed and commercialized as a project

Holding of “Automotive Workshop” on regular basis by Hitachi Research Laboratory and Mechanical Engineering Research Laboratory[Aim] To exploit the possibility of collaboration among the laboratories for more efficient investment

and competitive differentiation

Automotive SystemsAll Rights Reserved, Copyright（C） 2003, Hitachi, Ltd. Automotive SystemsAll Rights Reserved, Copyright (C) 2003, Hitachi, Ltd. -14-


2


4 Summary

Table of Contents


Including the consolidated sales and operating profit of “automotive related business” of Shin-Kobe Electric Machinery(subsidiary of Hitachi Chemical) and Tokico(equity method affiliate).Therefore, the definition is different from that in segment information of Hitachi’s consolidated accounting.

MissionOur mission is to create new value for people, vehicles and society, and we aim to make this dream come true.

We will achieve our missions for the future one by one;a world with clean air, a safe society with no accidents, and convenient living space even in transit through our system solutions for auto manufacturers.Strategic Goal (Fiscal 2010):


Sales of 1 Trillion Yen, Operating Profit Margin of More Than 7%

Automotive Systems’ Mission and Vision

Vision



Electronic Fuel Injection Systems: No. 2No. 2**

　(Engine Control Units, Injectors, Fuel Pumps　 Electronic Throttle Bodies, Air Flow Sensors, etc)

Hydraulic Power Steering: No. 3No. 3**

Variable Valve Timing Units: No. 22 **

Collision Warning Systems: No. 2No. 2**

Starters, Alternators: No. 3No. 3**

Market Position (Fiscal 2002)

Engine Management Systems: Engine Management Systems: 22nd nd in domestic marketin domestic market

Pistons: No. 2 No. 2 **

Top share in theglobal market

Source:Hitachi estimates from several research reportsAutomotive SystemsAll Rights Reserved, Copyright (C) 2003, Hitachi, Ltd. -16-

Navigation Systems: No. 3No. 3**

(OEM market)

* In Domestic Market

(EP 250)

[250]

[330]

[250][170]

All Rights Reserved, Copyright（C） 2003, Hitachi, Ltd. Automotive Systems

Strategic Goals for 2010[[Fiscal 2010 Sales ofFiscal 2010 Sales of１１ Trillion Yen, Operating Profit Margin of More Than 7Trillion Yen, Operating Profit Margin of More Than 7％％](*2)](*2)


Sales

(billion yen/year)

3 Segments / 4 System Businesses

FY2002(Results)

FY2003(Forecast)

FY2005(Plan)

FY2010(Goal)

290(365) (370)(*１)

(*2)[500]

(*2)[1 trillion yen]

Vehicle Information Systems

Electric Power TrainSystems/ElectricalEquipment

Drive Control Systems

Engine ManagementSystems

(*1): From 2nd half of fiscal 2002, Hitachi Unisia sales are included.(*2): Including the consolidated sales and operating profit of “automotive related business” of Shin-Kobe Electric

Machinery (subsidiary of Hitachi Chemical) and Tokico(equity method affiliate).Therefore, the definition is different that in segment information of Hitachi’s consolidated accounting.


MPI Systems(Port Injection)

Direct Injection Systems

Reduction of exhaust emissions: Euro VReduction of CO2

Environmental Regulations

(1) Engine Management Systems


Strategy Focusing on Direct Injection Gasoline Control SystemFocusing on Direct Injection Gasoline Control System

Gasoline Engine SystemsGasoline Engine Systems

1

2

02002

0.5

1.5

2005 2010(year)

Source: Hitachi estimates from several research reports

(trillion yen/year)

1.65

24.6%

CAAGR(2002 2010)

Utilization of simulation and combustionanalysis from nuclear power generationand gas turbines

HitachiHitachi’’s Core Competences Core Competence

Proposal of optimized Proposal of optimized combustion conceptcombustion concept

Improvement ofImprovement of developmentdevelopmentspeed by 30%speed by 30%

Mixture FlameFuel Spray

Spark Plug Intake Port

CombustionChamber

Injector

Strategy by Business(Product)

MarketTrend

Business(Product)

RegionCustomer


(1) Engine Management SystemMain ProductsMain Products

InjectorEngine ControlUnit

High-PressureFuel Pump

ElectronicThrottle Body

Air Flow Sensor


NOx Catalyst

Piston

Valve TimingControl

No. 1 ShareWorldwide

Strategy by Business(Product)Business(Product)

RegionCustomer

Automotive SystemsAll Rights Reserved, Copyright（C） 2003, Hitachi, Ltd. Automotive Systems

500

02002

250

2005

Hybrid Electric Vehicle

Electric Vehicle Fuel CellElectric Vehicle

509Ratio of total vehicleproduction in 2010: 7.7%

2010

ULEV, SULEV, ZEVUltra-Low Emission VehicleSuper Ultra-Low Emission VehicleZero Emission Vehicle

(2) Electric Powertrain SystemStrategy

Automotive SystemsAll Rights Reserved, Copyright (C) 2003, Hitachi, Ltd. -20-Source: Hitachi estimates from several research reports

NextNext--GenerationGenerationEco Friendly AutomobileEco Friendly Automobile HitachiHitachi’’s Core Competences Core Competence

Global Expansion of Products for Hybrid Electric VehicleGlobal Expansion of Products for Hybrid Electric Vehicle

(year)

(10kilo units/year)

Environmental RegulationsAbility to incorporate both Ability to incorporate both engine control and motor controlengine control and motor control

Ability to provide motor, inverterAbility to provide motor, inverterand battery (land battery (lithium-ion secondarybattery) as a SYSTEM) as a SYSTEM

Application of motor technologies since Hitachi’s formation and inverter technologies for bullet trains

EngineEngineControlControl

Motor Motor ControlControl

EnergyEnergyManagementManagement


MarketTrend

Business(Product)

Business(Product)

RegionCustomer


Drive System for Next-Generation Hybrid Electric VehicleDrive System for Next-Generation Hybrid Electric Vehicle

(2) Electric Powertrain System


Lithium-ion SSecondary BatteryMotor InverterCollaboration betweenCollaboration betweenHitachi Research LaboratoryHitachi Research Laboratory& & ShinShin--Kobe Electric MachineryKobe Electric MachineryKnowKnow--how for structure/controlhow for structure/controlMaterial technologyMaterial technology(positive electrode/(positive electrode/

battery electrolyte, etc.)battery electrolyte, etc.)

Small & compactSmall & compactDevelopment & production Development & production of exclusive semiof exclusive semi--conductor componentconductor componentsuch as such as ““power devicepower device””and and ““IGBTIGBT”” withinwithinHitachi GroupHitachi Group

Small & compactSmall & compactHighHigh--density wiredensity wire

Lithium-ion secondary battery: decided to construct the pilot line(production at Sawa Works(Japan) which produces motors & inverters)


Business(Product)

RegionCustomer

Main ProductsMain ProductsMain Products

Battery-LessElectric 4WD SystemBattery-LessElectric 4WD System

Lithium-Ion Secondary BatteryLithium-Ion Secondary Battery

Automotive Systems

Main ProductsMain ProductsMain Products2002

mass production

All Rights Reserved, Copyright（C） 2003, Hitachi, Ltd. Automotive SystemsAll Rights Reserved, Copyright (C) 2003, Hitachi, Ltd. -22-

(2) Electric Powertrain System

Water-Cooled Alternator

Controller Motor

2002:Yamaha Motor “Passol”

2000:Nissan “Tino Hybrid”

2003:Mazda “DEMIO”

2002:Nissan “MARCH”

Belted Alternator Starterwith Integrated Inverter

2002mass production


Business(Product)

RegionCustomer

Simplified Hybrid System for idle-stoppingSimplified Hybrid System for idle-stopping


Strategy

(3) Drive Control System

Advancing R&D to Realize Advancing R&D to Realize ““ＸＸ--ByBy--WireWire””HitachiHitachi’’s Core Competences Core Competence

・・Sensor FusionSensor Fusion(Millimeter wave radar & Camera)(Millimeter wave radar & Camera)

・・Integrated Circuit for Integrated Circuit for Millimeter Wave RadarMillimeter Wave Radar

・・Communication Software for Communication Software for XX--ByBy--WireWire

Applying highly dependable control technologyfostered in railway business and semiconductortechnology attaining high-speed communications to automotive business

・・Drive Control Technology and Drive Control Technology and Actuation Technology for Realizing Actuation Technology for Realizing BrakeBrake--ByBy--Wire and SteerWire and Steer--ByBy--WireWire

MarketTrend

NextNext--GenerationGenerationDrive Control SystemDrive Control System


1

2

2002

0.5

1.5

(trillion yen/year)

Suspension

Brake

Steering

FailSafe Equipment

20050

2010

CAAGR*(2002→2010） 12.3%1.79

-23- Automotive SystemsAll Rights Reserved, Copyright （C） 2003, Hitachi, Ltd.

Business(Product)

RegionCustomer

(*)CAAGR:Compound Average Annual Growth RateSource: Hitachi estimates from several research reports


Millimeter WaveRadar (76GHz) Hitachi

Main ProductsMain ProductsMain Products

Image Processing Camera Hitachi

Electric Power SteeringHitachi Unisia

Automotive

EMB (Electro-Mechanical Brake)Hitachi, Hitachi Unisia Automotive, Tokico,Hitachi Cable

ABSHitachi Unisia

Automotive

Electronic BoosterTokico

：under development

All Rights Reserved, Copyright （C） 2003, Hitachi, Ltd.

Wide Angle Short Range Radar[For pre-crash](76GHz)Hitachi

Semi-Active SuspensionTokico


Business(Product)

RegionCustomer

Automotive Systems-24-


ACC(Adaptive Cruise Control)Unit　Hitachi

Automotive Systems

Application ExamplesApplication Examples


In 2003: Isuzu“GIGA”

In 2002：　Nissan “CIMA”

Future Vehicle ConceptFuture Vehicle Concept

76GHzMillimeter Wave Radar

ImageProcessing Camera

Electronic Booster

In 2003: Subaru “LEGACY”



76GHzMillimeter WaveRadar

Business(Product)

RegionCustomer



ACC Unit

Automotive Systems

（４） Vehicle Information SystemVehicle Information System

2001 2005 2010

298

（billion yen/year)

7471,388

443

1,7151,190

3,103

TelematicsService

OnboardEquipment


Aiming for Global de Facto Standard in Social Aiming for Global de Facto Standard in Social Infrastructure and Onboard EquipmentInfrastructure and Onboard Equipment

(year)

Providing total solutions for Providing total solutions for onboard equipment and portal serviceonboard equipment and portal service

Applying high-speed data communication technology (EV-DO) and storage technology (HDD) to automotive business

Vehicle Information Vehicle Information

Providing worldProviding world’’s first servers first server--assistedassistednavigation and car portal servicenavigation and car portal servicefor Nissan: for Nissan: ““CARWINGSCARWINGS””VRMVRM(Vehicle Relationship Management)(Vehicle Relationship Management)


Strategy

MarketTrend HitachiHitachi’’s Core Competences Core Competence

Source: Surveys of Nomura Research Institute/Yano Research Institute/Roland Berger

Business(Product)

RegionCustomer



Drive Route AssistTMNissan “CARWINGS” UnitAutomotive SystemsAll Rights Reserved, Copyright（C） 2003, Hitachi, Ltd.

Main ProductsMain Products and Servicesand Services

Car Navigation SystemsCar Navigation Systems

Telematics:Portal & Onboard EquipmentTelematics:Portal & Onboard Equipment

Next-Generation Telematics ServicesNext-Generation Telematics Services

HDD Navigation System（Xanavi Informatics）

VRM

MassProduction


（４） Vehicle Information SystemVehicle Information System

MassProduction

in 2002

Business(Product)

RegionCustomer



Main Customers of Hitachi Automotive Systems Gr.

SubaruIsuzu SuzukiGM FiatOpel

GM Gr.

Saab

Toyota Gr.

Toyota Daihatsu Hino

DaimlerChrysler

DaimlerChrysler Gr.

VW AudiAudi

VW Gr.Renault/Nissan Gr.

NissanRenault NissanDiesel

PSA Gr.

PSA Hyundai KiaKia

Hyundai Gr.

BMW

BMW

JaguarVolvoFord

Ford Gr.

Mazda

Mitsubishi


Honda

Honda

Sales by customers in fiscal 2003 (Forecast)Sales by customers in fiscal 2003 (Forecast)

Renault/Nissan

55%GM Gr. 20%Ford Gr. 5%

Others15%Honda 5%

Strategy Sales Promotion for Global Top 10 CarmakersSales Promotion for Global Top 10 Carmakers


Business(Product)

RegionCustomer


Strategy by Customer


Business(Product)

RegionCustomer

“Development,”“Production,”and “Sales” bases in North America, Asia and Europe to meet global customers’ requirements

ProductionSalesTechnical CentersLicensing of Technology

■▲●◆

■▲◆■■▲▲◆◆ ■▲●■■▲▲●■▲●■■▲▲●●

■▲■■▲▲■▲■■▲▲

■▲■■▲▲

■▲◆■■▲▲◆◆

■■■

▲●◆▲●◆▲◆▲◆▲▲

▲●▲●

▲▲

■▲■▲

◆◆◆

■▲■■▲▲

■■■

■▲■■▲▲■▲■■▲▲■▲■■▲▲

■▲■■▲▲

▲●▲▲●●

◆◆◆

■▲◆■■▲▲◆◆

◆◆◆

◆◆◆

North, Central and South America

11

North, Central and South America

11Asia/Oceania26

Asia/Oceania26

Europe/Africa14

Europe/Africa14

As of Nov. 2003


Strategy by Region (1) Global Operations



■

November 2002Production and salesControl units, Air flow sensors, etc.

December 2003Production and salesStarters

Hitachi HighlyAutomotive Parts(Shanghai) Ltd.August 2002

Production and sales Power steering parts, etc.

Guangzhou Hitachi Unisia Automotive Parts Co., Ltd.


Expand sales in growing market of ChinaEstablish production, sales, local technical support and procurement organization　　Early establishment in rapidly growing market of China

to expand business

Strategy

Company FoundationDescription of businessProduction items

Hitachi Automotive Products (Suzhou) Ltd.

October 1995Production and salesAlternators, starters, etc.

Changsha Hitachi Automotive Products Co., Ltd.

Strategy by Region (2) ChinaBusiness(Product)

RegionCustomer



Wolfsburg

NeckarsulmHRA-Poland

Milan

Frankfurt

Sachsen Works

Paris

Bari

With tighter environmental regulations, rapid growth in environmental products market is expected.Prompt rollout of products using Hitachi’s advanced technology

　e.g. high pressure fuel pumps for direct gasoline injection systems

Strategy

Bolton

July 2003Production, sales and

Engineering support

Hitachi Automotive SystemsEurope GmbH

Company FoundationDescription of businessProduction items

April 1997Production and salesElectronic products

　　　(control units, etc.)

Hitachi Automotive ProductsEurope,Ltd.

Strategy by Region (3) Europe

November 2003 (start of construction)

Production and salesMechatronics products

(high pressure fuel pumps, etc.)

Hitachi Automotive SystemsEurope GmbH.Sachsen Works


Business(Product)

RegionCustomer


Main Customers of Hitachi Automotive Systems Gr.Strategies by Region (4）Expansion of Overseas Business

Fiscal 2003 (Forecast)Fiscal 2003 (Forecast) Fiscal 2010 (Target)Fiscal 2010 (Target)

Aiming to Expand Overseas Sales Raitoof 32% in Fiscal 2003 to More Than 50% in Fiscal 2010

In Japan68%

Overseas 32%(including China 1%)

Automotive SystemsAll Rights Reserved, Copyright（C） 2003, Hitachi, Ltd.All Rights Reserved, Copyright （C） 2003, Hitachi, Ltd.

In Japan50%

Overseas 50%(including China 6%)

Business(Product)

RegionCustomer



SummaryAutomotive technology will develop significantly in the electricAutomotive technology will develop significantly in the electrical and al and electronic fields, corresponding to the requirements of the maelectronic fields, corresponding to the requirements of the market, such as rket, such as environmental and safety regulations andenvironmental and safety regulations and the improvement of convenience.the improvement of convenience.

Focusing on the Focusing on the ““3 Segments / 4 System Businesses3 Segments / 4 System Businesses””to realito realize ITS advanced vehicle controlze ITS advanced vehicle control

LongLong--term strategic goal:term strategic goal:Sales of 1 trillion yen, operating profit margin of more than 7%Sales of 1 trillion yen, operating profit margin of more than 7% (Fiscal 2010)(Fiscal 2010)

4) 4) Vehicle Information SystemVehicle Information System

1.1.EnvironEnviron--mentment

1) 1) Engine Management SystemEngine Management System

2) 2) Electric Powertrain System Electric Powertrain System

3) 3) Drive Control SystemDrive Control System2. 2. SafetySafety3. 3. InforInfor--

mationmation

ITSITSAdvancedAdvancedVehicle Vehicle ControlControl

Motor and inverter controls, semiconductors, IT, HDDs and new maMotor and inverter controls, semiconductors, IT, HDDs and new materialsterialsHitachi provides solutions based on a broad range of technologieHitachi provides solutions based on a broad range of technologies:s:

-34- Automotive SystemsAll Rights Reserved, Copyright （C） 2003, Hitachi, Ltd.

One of the Targeted Businesses

Including the consolidated sales and operating profit of “automotive related business” of Shin-Kobe Electric Machinery(subsidiary of Hitachi Chemical) and Tokico(equity method affiliate).Therefore, the definition is different from that in segment information of Hitachi’s consolidated accounting.

Cautionary Statement

Certain statements contained in this document may constitute forward-looking statements which reflect management’s current views with respect to certain future events and financial performance based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify forward-looking statements. Actual results may differ materially from those projected or implied in the forward-looking statements and from historical trends. Further, certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate.

Factors that could cause actual results to differ materially from those projected or implied in any forward-looking statements and from historical trends include, but are not limited to:

- rapid technological change, particularly in the Information & Telecommunication Systems segment and Electronic Devices segment;

- uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technology on a timely and cost-effective basis and to

achieve market acceptance for such products;

- fluctuations in product demand and industry capacity, particularly in the Information & Telecommunication Systems segment, Electronic Devices

segment and Digital Media & Consumer Products segment;

- increasing commoditization of information technology products, and intensifying price competition in the market for such products;

- fluctuations in rates of exchange for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are

denominated, particularly between the yen and the U.S. dollar;

- uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing, particularly in the context of limited credit

availability currently prevailing in Japan;

- uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand and/or exchange rates;

- general economic conditions and the regulatory and trade environment of Hitachi’s major markets, particularly, the United States, Japan and elsewhere in

Asia, including, without limitation, continued stagnation or deterioration of the Japanese economy, or direct or indirect restriction by other nations of

imports;

- uncertainty as to Hitachi’s access to, or protection for, certain intellectual property rights, particularly those related to electronics and data processing

technologies;

- uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and

development of certain key products; and

- uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write-down equity securities it holds.

These factors listed above are not exclusive and are in addition to other factors that are stated or indicated elsewhere in this report, or in other materials published by the Company.

business strategy of automotive systems - hitachi · business strategy of automotive systems -...

Documents