The Value Creation Process
VisionRealize a Sustainable Society through Improving Quality of Life and Adding Value for Customers
VisionINPUT(FY2020)

Human capital

OUTCOME

Provide solutions focusing on three fields:
the Environment, Resilience, and Security & Safety

Simultaneously increase social,environmental, and economic value

Diverse and global talent that can resolve
social issues

Co-creation with customers and society

Overseas employee ratio

Diversification and globalizationof Human Capital
Diversity and inclusion (D&I)

9.5%
11.6%

Ratio of female managers

Intellectual capital

Ratio of non-Japanese executive
and corporate officers

Technologies/co-creation platforms to ensure
global competitiveness293.5 billion yen
R&D staff*
2,650
Customer co-creation centers*
11
R&D investments

ITEnergy

IndustryMobility

Smart Life

AutomotiveSystems

OTIT

Products

Co-creation Methods

Partnerships for creating value
through co-creation
cumulative

61 projects(1.51 GL)

Raw material input

Financial platforms and investments
for creating value
Hitachi, Ltd.
stockholders’ equity
Interest-bearing debt
Growth investment

Sustainable growthstrategies

Expand Revenues by Accelerating
the Social Innovation Business P.28Foundations supporting
sustainable growth

Addressing Risks
and Opportunities

P.70

Corporate Governance

Enhance Global CompetitivenessPromoting Information Security P.77
Occupational Health and Safety, Employee HealthP.78

P.36

Reinforce Management System
to Improve Profitability P.46

Value Chain
Responsibilities

P.79

P.82

3,525.5 billion yen
2,397.3 billion yen
1,700 billion yen

More than 100

Lumada customer cases

More than 1,000

Lumada solution coreMore than 85257 cases

approx. 10,000

MISSION

Contribute to society through the development of superior,original technology and products.

Quality Assurance P.80
Compliance P.81

Reduction in CO2 emissions
from products and services
Reduction rate in total CO2
emissions at business sites(factories and offices)
Reduction rate in water use per unit
Reduction rate in waste
and valuables generation per unit
Reduction rate in chemical
atmospheric emissions per unit

20%
39%
24%
14%

Data

Financial capital

Number of cases registeredin the Lumada Solution Hub

Reducing environmental burden (vs. fiscal 2010)

Source of value creationand competitive superiority

3,066 kt
26.35 million m³
Total chemical substances handled
56.4 kt

1.1 trillion yen

Number of publishedof patent applications

Digital Innovation Platform

1.9 billion yen

Total water input

Lumada business revenues

Application cases for internal IT services

7 companies

Efficient use of resources(crude oil equivalent)62%

GovernanceIndustrial and Business Expertise

Natural capital

Total energy input

Total: 35,000 persons

Expand the use of Lumada in-house

More than 40 companies

Investments in start-ups
Funding for social
contribution activities

Increase of 5,000 persons

Sustainability

359.8 billion yen
approximately 400

Social and relationship capital

Lumada AllianceProgram partners

Digital talent

Increase competitive superiority
to expand business

Production/business processes
enhanced through IT
Manufacturing bases

10.1%

Ratio of female executive
and corporate officers

Engagement indicatorin employee survey

Manufactured capital

Capital expenditure(FY2020)

Value Creation

301,056
46%
Investment in education per employee 66,900 yen
Number of employees (consolidated)*

33%

Accumulate resources for growth and returns
Core free cash flows
Total dividends
Total shareholder return419.8 billion yen
101.5 billion yen+106.4%(past 5 years)Note: The total number of employees on a consolidated basis, the number of R&D staff, and the number of customer co-creation centers are as of the end of fiscal 2019. The number of manufacturing bases is as of April 2020

20

Hitachi Integrated Report 2021

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