1©2005 Hitachi, Ltd. All rights reserved.
Dr. Michiharu NakamuraExecutive Vice President and Executive OfficerHead, Research & Development GroupHitachi, Ltd.
R&D for a high-profit growth company
Thursday, 7th April 2005
2©2005 Hitachi, Ltd. All rights reserved.
FY 2004 Achievements
1
FY 2005 Harvest
2
R&D with 2010 in sight
3
4
Introduction
©2005 Hitachi, Ltd. All rights reserved.
Contents
3©2005 Hitachi, Ltd. All rights reserved.
-1.
Based on technology and collaborative creativity, direct the group’s R&D efforts towards satisfying customers in ways that contribute to the prosperity and safety of society.
Develop world-leading technologies that drive further growth of the Hitachi Group.
Create paradigm shifts in industrial technology with original ideas and an accurate understanding of social trends.
11 Hitachi Group R&D Philosophy
4©2005 Hitachi, Ltd. All rights reserved.
-2.11 Hitachi Group R&D Scheme
Business Strategy Roadmap
Hitachi Group Platform ResearchTechnology Platforms Across the Hitachi Group
Hitachi Group Frontier Research
Sponsored Research Advanced Sponsored Research
2006Management
strategy
Business / technology
strategy
Creation of next-generation core
businesses / new businesses
Group R&D
Year
Long-term Technology Development Plan
Expansion / incubation of“Inspire A” businesses
20142004 2009“i.e.HITACHI PlanⅡ”
Paradigm-shifting Technology
Core Technology 2010Harvest
HHaarrvveesstt
FY 2004 Achievements FY 2005 Harvest
5©2005 Hitachi, Ltd. All rights reserved.
FY 2004 Achievements
1
FY 2005 Harvest
2
R&D with 2010 in sight
3
4
Introduction
©2005 Hitachi, Ltd. All rights reserved.
Contents
6©2005 Hitachi, Ltd. All rights reserved.
-1.22Presented at 2004/4/7 Information Meeting
Promoting R&D ThroughGroup Collaborative Creativity
“Inspire A” BusinessesPromoting Technological
DevelopmentRaising R&D Efficiency
Hitachi Group CTO* MeetingHitachi Group Frontier / PlatformResearchTechnology platforms across the Hitachi Group
Foster and strengthen core technologiesConcentration of R&D resources
Synchronize with management strategyR&D collaboration with outside parties
“Engine” for Creating and Strengthening Businesses
*CTO : Chief Technology Officer
FY2004 R&D Approach
7©2005 Hitachi, Ltd. All rights reserved.
・ Nanotechnology & Materials・ Li Batteries・ Fuel cells
Key Technologies, & Devices**
Automotive・ CIS・ Electric
Power Train・ Cruise Control*
StorageService & Solutions
・ Outsourcing・ E-government・ Network Solutions・ RFID Solutions・ Broadband Access
Equipment*・ System Logistics
(3PL)*
Production & Testing Equipment
・ Semiconductor & Liquid Crystal DisplayManufacturing Equip.
・ Storage Solutions・ HDDs・ Ubiquitous HDD
CIS : Car Information Systems
PDP: Plasma Display Panels3PL : Third Party Logistics
BusinessBusinessExpansionExpansion
Areas toAreas toFosterFoster
AcrossAcrossDivisionsDivisions
IndividualIndividualEffortEffort
Taking advantage of HitachiGroup
Propelled by individual business groups
<8 <8 Areas of Business>Areas of Business>
Aiming for No. 1 for nextgeneration backbone business
Potential new backbone business areas
Medical & Biotechnology
・ Medical Diagnostic Systems
・ Medical Support Systems
・ Proton Beam CancerTherapy Systems
Consumer・Degital Media・PDPs*・TFT LCDs for TV*
Social Infrastructure
Systems・ Urban renewal・ Transportation Systems・ Coal Thermal Power
Systems*
* Newly added theme
-2. 22 Promoting “Inspire A” Businesses
** Key Technologies & Devices has merged with Batteries
8©2005 Hitachi, Ltd. All rights reserved.
-3.22 Examples of “Inspire A”Business Achievements (1)
SANRISE USPInformation & Telecommunication
Systems Group
HDD for Portable Music TerminalHitachi Global Storage Technologies
Established Hitachi Vehicle EnergyAutomotive Systems Group,
Shin-Kobe Electric Machinery Co., Ltd.,Hitachi Maxell, Ltd.
Established ALAXALA NetworksALAXALA Networks Corporation,Information & Telecommunication
Systems Group
Storage Solution HDD : 1 inch Microdrive Communications Network
Wooo Li Battery
55” PDP TV, DVD Recorder with 400GB HDDUbiquitous Platform Systems Group, Hitachi GST
9©2005 Hitachi, Ltd. All rights reserved.
22 -4.Examples of “Inspire A”
Business Achievements (2)
Fuel cells, RFID Solutions, Ubiquitous HDD: Information Terminal “Nature Viewer” on display at Aichi World Expo
Information & Telecommunication Systems Group, Ubiquitous Platform Systems Group, Hitachi GST
Sankyo Co., Ltd. contractInformation & Telecommunication
Systems Group
Magnetic Cardiograph (Received Ten Best New Products Award)
Hitachi High-Technologies Corporation
Preferred manufacturer for CTRL domestic service trains in the UK
Power Systems Group
AS-IPS2 LCDHitachi Displays, Ltd.
Transport Systems TFT LCD for TVs Outsourcing
Medical Diagnostics
10©2005 Hitachi, Ltd. All rights reserved.
-5.22Strengthen competitiveness by integrating the Li-ion battery business in one company
Hitachi Vehicle Energy, Ltd.Dec. 2004: Pilot line completed
ResourcesResources
Batteries / Components / Control Systems/ Highly Functional Materials
Shin-Kobe Electric Machinery Co., Ltd.
Hitachi, Ltd.
Hitachi Maxell, Ltd. TechnologyTechnology
Hitachi, Ltd. R&D Group(Materials Research Laboratory, etc.)
Hitachi Group(Hitachi Chemical Co.,Ltd. Hitachi Metals, Ltd.,etc.)
Technology
NiNi--MHMH (’01)(’03)
00 1001000
2,000
4,000
3,000
5050
1,000
22ndnd GenerationGeneration
•• Spinel Manganese Spinel Manganese Positive PolePositive Pole
•• Carbon Negative PoleCarbon Negative Pole
•• New Manganese New Manganese Positive PolePositive Pole
•• New ElectrolyteNew Electrolyte
11stst GenerationGeneration
LiLi--ionion
Energy Density (Wh/kg)
Out
put D
ensi
ty (W
/kg) Expand
applicationsExpand
applications
Portable:Hybrid Vehicles / TrucksFuel-cell Hybrid VehiclesHybrid Diesel
Establishment of Hitachi Vehicle Energy, Ltd.
Fixed:Back-up Power Source(Cellular Phone Base Stations, Buildings, etc.)
11©2005 Hitachi, Ltd. All rights reserved.
-6.22
Successful Observation of the Spin-Hall Effect(Magnetic properties induced by passing electric current
through a semiconductor)
Mirror Display 360°3D Display360°3D Display
Silhouette Counter
Robotics
Human Interaction
Spintronics
Presented to the Prime Minister & Cabinet (National IT Strategy Council)
Sept. 2004
Hitachi Cambridge Laboratory Research Achievement(Joint research with Univ. of Texas, etc.)
Nov. 2004
March 2005
EMIEW*: An interactive robot responding to dialogueto support daily life
Agile collision avoidance
Natural hand movement
High-speed mobility
Interactive communication
2005 Aichi World Expo Exhibit(June 2005 - )
Feb. 2005
* Excellent Mobility and Interactive Existence as Workmate
TFT
Sheet Display
Organic TFT- driven Color LCD
June 2004
World’s highest definition achieved
(Collaboration with the University of Tsukuba; NEDO supported project)
Examples of Hitachi Group Frontier Research Achievements
Nov. 2004
(Collaboration with the National Institute of Advanced IndustrialScience and Technology (AIST); a NEDO supported project)
12©2005 Hitachi, Ltd. All rights reserved.
-7. 22
Power Electronics SystemOriginal optimal motor design algorithm
Stator
RotorOptimal
motor dimensions
Fatigue Crack
0.1mm
Solder
High Accuracy Strength AnalysisAnalysis tool for fatigue cracks in solder joints (developed for use in automotive LSIs, etc.)
Cu
Sn
Cu-SnCompound50µm
High-temperature Lead-free SolderSolder consists of
Cu powder / Sn powder mixed paste(developed for high heat-proof joints)
Examples of Hitachi Group Platform Research Achievements
Current waveform analysis
13©2005 Hitachi, Ltd. All rights reserved.
-8.Strengthening Global R&D Formation
22Hitachi America, Ltd. <40>
Hitachi Europe Ltd. <25> Hitachi (China) Research & Development Corporation <80>
Hitachi Asia Ltd. <5>(Singapore)
Magnetic Disks
April 2004 : Established independent R&D organization in China
April 2004 : Established Singapore Research Office
Quantum CommunicationsBioinformaticsOrganic Electronics
Storage Network SolutionsCar Information SystemsBroadband Wireless SystemsTotal Supply Chain Management
Technology
IP Network Home NetworkDigital TV
R&D Organization<Est. R&D Personnel (FY 2005)>
Main Research Themes
Open R&D Environment (1)
14©2005 Hitachi, Ltd. All rights reserved.
22 -9.
Customer Tsinghua UniversityShanghai Jiao Tong UniversityFudan University
Local Affiliates of Business Groups & Group CompaniesR&D Division• Planning• Development• Design• IP
Hitachi (China) Ltd.Hitachi (China) Ltd.
Hitachi (China)
R&D Corp.
・ Established:April 2005 (Beijing Head Office), June 2005 (Shanghai Branch Office) ・ Capital :USD6,000,000・ Number of Employees: 80 (Estimate for 2005) → 120 (Estimate for 2006)
・ Established:April 2005 (Beijing Head Office), June 2005 (Shanghai Branch Office) ・ Capital :USD6,000,000・ Number of Employees: 80 (Estimate for 2005) → 120 (Estimate for 2006)
Academic Collaboration
Col
labo
rativ
e C
reat
ion
Open R&D Environment (2)Establishment of Hitachi (China) Research & Development Corporation
• Localized Development• R&D Hub Function• Localized Development• R&D Hub Function
1. Contribute to local business efforts as the R&D hub in China2. Strengthen relationship with the government and major universities in China 3. Employ and develop talented staff
15©2005 Hitachi, Ltd. All rights reserved.
Development of innovative Development of innovative technology through comprehensive technology through comprehensive collaborative alliances with collaborative alliances with universities and participation in universities and participation in national projectsnational projects
sample
2mm×2mm×1.5mm
sample
2mm×2mm×1.5mm
Widespread Disaster Recovery TechnologyWidespread Disaster Recovery Technology
Successful application in compensation of signal deterioration in optical fibers
Photonic Crystal Device for Optical CommunicationsPhotonic Crystal Device for Optical Communications
Main Site
Back-up SiteA method to update data at the back-up site using transmission log data was developed, reducing telecommunication costs by 40%.
Update
22・ Univ. of Tokyo ・ MEXT*・ Univ. of Tokyo ・ MEXT*
・ Univ. of Tokyo・ MEXT*・ NEDO**
・ Univ. of Tokyo・ MEXT*・ NEDO**
Open R&D Environment (3)-10.
ログ
ログデータ
データLog
LogData
Data
*MEXT: Ministry of Education, Culture, Sports, Science & Technology**New Energy & Industrial Technology Development Organization
16©2005 Hitachi, Ltd. All rights reserved.
FY 2004 Achievements
1
FY 2005 Harvest
2
R&D with 2010 in sight
3
4
Introduction
©2005 Hitachi, Ltd. All rights reserved.
Contents
17©2005 Hitachi, Ltd. All rights reserved.
-1.33Priority allocation of research resources to contribute to earnings in FY 2005
Biometric personal authentication, RFID chips, secure client serversUbiquitous Solutions
Beat washing, motors, inverterHome Appliances
Accelerator, radiation control technologyProton Beam Cancer Therapy System*
High efficiency, low cost, environment-conscious, combustion analysis technology
Coal Thermal Power Generation System*
IPS mode systems, color reproduction, high yield technologyTFT LCDs for TV
Motors, engine control, automation, EMC analysisAutomotive Equipment (EPT, etc.)*
High resolution e-beam lithography, high-throughput analysisSemiconductor Manufacturing / Inspection Equipment*
ALIS, low driving voltage, high luminescence efficiencyPDP*
Perpendicular magnetic recording, signal processing, TSCM, high reliability technologyHDD*
High performance & reliability, new storage technologyStorage Solutions*
Technological Strong PointsBusiness
Priority Businesses Targeted for 2005 Harvest
*“ InspireA”
18©2005 Hitachi, Ltd. All rights reserved.
-2.33Semiconductor Inspection EquipmentProton Beam Cancer Therapy Systems
Home Appliance
Enhanced cleaning performance
BeatWash BeatWash : : New style New style washing machinewashing machinewith dryerwith dryer
Cyclonic Vacuum CleanerCyclonic Vacuum Cleaner
Improved suction efficiency(High power fan & motor)
AirAir--conditionerconditioner
Energy & Resource-saving Design
(Awarded ECCJ FY 2004 Grand Prize for Energy Conservation)
High Resolution High Resolution CDCD--Measurement SEMMeasurement SEM
Image Resolution: 2nmCompatible with 300 mm waferproduction line
Examples of Priority Businesses (1)
Synchrotron
Treatment Room
19©2005 Hitachi, Ltd. All rights reserved.
-3.33Ubiquitous Solution Business:
Platform technology for a safe, secure & comfortable society
Biometrics• Expand applications for Finger Vein
Personal Authentication equipment
Information Security
Security PC
Digital watermarking: 2004~・Preventing information leak (finance, government)・Contents protection (video, etc.)
PeopleTerminal
InformationSecure Social PlatformSecure Social Platform
・ Achievement of a strong security environment and further reduction of TCOCentral Management by
Blade-type PC Servers: 2005 ~ ・Central management of client PCs
Storage-centric: 2006 ~ ・Client data consolidation
and isolation
・ Develop solutions based on technological strengths
Examples of Priority Businesses (2)
Cryptography・Tamper resistant: 2007~・Light-weight, low power consuming
encryption・Custom LSI implementation &
deployment in various equipment
Entrance control: 2004~• Prevent illegal entry & theft
PC log-in control: 2005 ~Vehicle: 2007~
• Anti-theft• Information access• Driving-support
Bank ATM: 2005 ~
20©2005 Hitachi, Ltd. All rights reserved.
Business GroupsGroup Companies
Group managementstrategy reform
Group managementstrategy reform
Increase development
strength
Increase development
strengthFortify global MONOZUKURIFortify global MONOZUKURI
(Hitachi Group HQ)
(R&D Group) (MONOZUKURIEngineering Division)
Hitachi Gr. MONOZUKURI Fortification Approach
-4.33Contribute to low-cost production of “Inspire A” products & main products
Reduced manufacturing costReduced development timeReduced defect loss
FSW joint technology, CAE for manufacturing process, High-precision surface finishing, Embedded software production technologyHigh-frequency EMC design, Convergence Engineering for Modeling & Simulation, Beam application measurement
Quality management assessment method, Project risk management
ResultMONOZUKURI Technology High-frequency EMC Design Technology
Significant cut-back in EMC trouble-shooting time by clarification of the mechanisms based on magnetic field measurement near the circuit board.
EMC: Electro-Magnetic Compatibility
Circuit BoardMagnetic field measurement example
(1) Resource prioritization for MONOZUKURI strategic products
(2) Simultaneous Optimizationfor performance, high-reliability and cost
(3) Thorough pursuit of quality and yield
• HDDs• TFT LCDs for TVs
Increasing profit by strengthening MONOZUKURI technology
• PDPs• Automotive components
21©2005 Hitachi, Ltd. All rights reserved.
FY 2004 Achievements
1
FY 2005 Harvest
2
R&D with 2010 in sight
3
4
Introduction
©2005 Hitachi, Ltd. All rights reserved.
Contents
22©2005 Hitachi, Ltd. All rights reserved.
-1. 44
1. Fortify & foster technology platforms supporting core technologies2. Vertical integration of businesses in the Hitachi Group,
Black-boxing of technology3. Promotion of technology for incubation for future No. 1 businesses
Management Target: Achieve high-profit management in 2010
Approach: Fortify & foster No. 1 businesses (market share, profitability)
R&D Measures
Present & Next-generation
TechnologyThird generation
TechnologyParadigm-shifting
Technology
Core Technology 2010 (Select & Focus)
Priority allocation of R&D resources
Fortify & FosterNo.1
Businesses
Fortify & FosterNo.1
Businesses
R&D Approach to 2010
23©2005 Hitachi, Ltd. All rights reserved.
-2. 44 Strengthening Technology Platforms to Support Core Technologies
Mechanical & Electrical Electronics Information
No.1 Technology EducationBusiness Enterprise Competitiveness Improvement
Product CompetitivenessImprovementProductivity Improvement
Service Business DevelopmentSolution Operation Reform
Tech
nolo
gy P
latfo
rmTe
chno
logy
Pla
tform
ElectronicsEnvironment &
EnergyNew MaterialsMedical & Biotechnology
Nanotechnology
OutsourcingEA*/SoA**/Initial Stage ConsultingUtilization of Advantage
Technologies and DevicesNew Service Methodologies
Allocate platforms for core technologies in three areas
Service ScienceElectron BeamBased Measurement
Non-Destructive Measurement
Product Design Support
Solution LSIEfficient System
Development PlatformingProject Management
Embedded SystemsDigitalEngineeringMaterials
Mec
hani
cal
Inno
vatio
n C
ente
rM
echa
nica
l In
nova
tion
Cen
ter
March2005
Mat
eria
ls R
esea
rch
Labo
rato
ry
Adv
ance
d S
imul
atio
n C
ente
r
Adv
ance
d M
easu
rem
ent a
ndA
naly
sis
Cen
ter
Em
bedd
ed S
yste
ms
Pla
tform
Tec
hnol
ogy
Labo
rato
ry
Coo
pera
tive
Cre
atio
n w
ith
Cus
tom
ers
(Lab.
Ope
n-D
ays)
Cro
ss L
abor
ator
yP
roje
cts
From2002
April 2005
April2005
March2004
April2004
April2004
*EA: Enterprise Architecture**SoA:Service Oriented Architecture
Purpose
Details
24©2005 Hitachi, Ltd. All rights reserved.
44 -3.
Acoustics Research Lab.
Roof Top
Location: Hitachi-Naka-shi, IbarakiPersonnel: Approx. 400 (MERL*) Building: 3 storiesFloor space: 6,720m2
Strengthening mechanical & electrical research platforms
Collaboration with business divisions in the Hitachi-Naka region
(1) Power & Industrial Systems Gr. (2) Urban Planning & Development Systems(3) Automotive Systems (4) Renesas Technology Corp. (5) Hitachi High-Technologies Corporation, Hitachi Home & Life Solutions, Inc.
• World-class Acoustics Research Laboratory & wind-tunnel experimental labs
• Robotics research• Comfortable energy-conserving experimental
facilities• Car mechatronics research • MEMS manufacturing process research • Environment-conscious buildings
(1)(4)
(5)(2)
(3)
Hitachi System Plaza KatsutaHitachi System Plaza Katsuta
MERL*MERL*
Katsuta Station
Mechanical Innovation CenterMechanical Innovation Center
Mechanical Innovation Center
(Established March 2005)
*Mechanical Engineering Research Lab.
25©2005 Hitachi, Ltd. All rights reserved.
-4.44
AVAV・・CIS Common PlatformCIS Common Platform
BroadbandBroadbandPCPC
HDD/DVDHDD/DVDAppliancesAppliances
Flat Panel TVFlat Panel TVCar NavigationCar Navigation
TelematicsTelematics
Embedded Systems Platform Laboratory (Approx. 80 staff)Embedded Systems Platform Laboratory (Approx. 80 staff)
Terrestrial digital broadcastingTerrestrial digital broadcastingAdvanced navigationAdvanced navigationHuman interfacesHuman interfaces
Development of Leading TechnologyDevelopment of Leading Technology
Increased quality & production Increased quality & production efficiencyefficiencyDevelopment techniques & process Development techniques & process innovationsinnovations
Development of Production TechnologyDevelopment of Production Technology
Digital Digital Consumer AppliancesConsumer Appliances
Vehicular Vehicular Information TerminalInformation Terminal
Purpose: Improve competitiveness & production efficiency in the electronics field
Embedded Software
Medical Diagnostic Equipment
Embedded Systems Platform Laboratory (Established April 2005)
SemiconductorManufac. Equip.
Automotive
TransportationSystems
26©2005 Hitachi, Ltd. All rights reserved.
-5.44
Technology Black-boxing
Technology, Know-how Integration
Hitachi GroupCollaboration
UbiquitousSolutions
Embedded SystemsPlatform LaboratoryEmbedded SystemsPlatform Laboratory
Mechanical Innovation Center
Mechanical Innovation Center
Vertically Integrated Businesses
Vertical Integration of Group Business & Black-boxing of Technology
Electric Power TrainsDigital TVs
TransportationSystems
Advanced MaterialsBatteriesCrystals
AdvancedSimulation Center
AdvancedSimulation Center
Material Research Lab.
Material Research Lab.
SoftwareCommon Platforms
Common Applications Digital TVs, MRIOriginal Key Components
Embedding Software
Embedded Systems Platform Research Laboratory
Embedded Systems Platform Research Laboratory
27©2005 Hitachi, Ltd. All rights reserved.
-6.44SensorNet Business: Taking roots in a safe, secure & comfortable society
Distortion sensor forstructural surveillancein buildings
March 2005March 2005
Network-based hydrogen detection system for hydrogen stations
Dec. 2004Dec. 2004
World’s smallest sensing node : 6.9cm3(Collaboration with YRP Ubiquitous Networking Laboratory)
SensorNode
Sensor
Controller
Pow
er AntennaRF unit
Oct. 2004Oct. 2004
3mm
TemperatureHumidityHumanpresenceAccelerationIlluminationInfra-red light
NEDO commissioned project
Examples of New Business Incubation
生活
Agriculture
Network
Industrial Infrastructure
Home
Social Infrastructure
Medical&Healthcare
SensorNet & Middleware Business• Management of data from numerous
sensing nodes• Detection of change in sensed data• Simple interface for data access• Administration of sensing node location and
condition
LogisticsOffice
28©2005 Hitachi, Ltd. All rights reserved.
Research Personnel: Laboratories & Development Centers
R&D expenditure
FY 2003 FY 2004 (estimate)
Revenue
Operating income
%R&D of Revenue (2)/(1)
372 390
8,632
185
4.44.3
Group Companies
Hitachi, Ltd.
5,340
FY 2003 FY 2004 FY 2005 (estimate)
5,595Total
3,4601,880
3,5482,047
Group Companies
Hitachi, Ltd.
236 (64%)Business Groups
Corporate Laboratories
8,840
260
64 (17%)72 (19%)
5,760
3,6582,102
SupplementaryNotes
(billion JPY)
(1)
(2)
(billion JPY)
Size of the R&D Group
29©2005 Hitachi, Ltd. All rights reserved.
Thank you.
30©2005 Hitachi, Ltd. All rights reserved.
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31©2005 Hitachi, Ltd. All rights reserved.
Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance 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 are used to assist readers in identifying these “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based on current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” 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 on imports;uncertainty as to Hitachi’s access to, and ability to protect, 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; anduncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write-down equity securities it holds.
The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.