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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of April 2010
Commission File Number 1-8320
Hitachi, Ltd.
(Translation of registrant’s name into English)
6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8280, Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
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This report on Form 6-K contains the following:
| 1. | Presentation of HDD business update dated April 22, 2010 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Hitachi, Ltd. | ||||
| (Registrant) | ||||
| Date April 22, 2010 |
By | /s/ Toshiaki Kuzuoka | ||
| Toshiaki Kuzuoka | ||||
| Vice President and Executive Officer | ||||
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Hitachi Global Storage Technologies
Steve Milligan
President & Chief Executive Officer
April 22, 2010
©2010, Hitachi Global Storage Technologies, All rights reserved.
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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,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “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 upon 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 economic conditions, including consumer spending and plant and equipment investments in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors which Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors; exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro; uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing; uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write down equity securities that it holds; the potential for significant losses on Hitachi’s investments in equity method affiliates; legislative and regulatory changes enacted by the new Japanese government; increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Information & Telecommunication Systems, the Electronic Devices and the Digital Media & Consumer Products segments; 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; rapid technological innovation; the possibility of cost fluctuations during the lifetime of or cancellation of long-term contracts, for which Hitachi uses the percentage-of-completion method to recognize revenue from sales; fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins; fluctuations in product demand and industry capacity; uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials; uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business; uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures; general socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports, or differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations; 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; uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies; uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties; the possibility of incurring expenses resulting from any defects in products or services of Hitachi; the possibility of disruption of Hitachi’s operations in Japan by earthquakes or other natural disasters; uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information and that of its customers; uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and uncertainty as to Hitachi’s ability to attract and retain skilled personnel.
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.
© 2010, Hitachi Global Storage Technologies
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Hitachi GST Global Operations
2009 Revenue: US$4.8B 35,000 Employees US Headquarters: San Jose, CA One of the industry’s largest patent portfolios
US Headquarters
San Jose, CA
Sales offices & technical support located WW
Manufacturing
Laguna, Philippines Odawara, Japan Prachinburi, Thailand San Jose, CA Sarawak, Malaysia Shenzhen, China Singapore
Research & Development
Fujisawa, Japan Odawara, Japan Rochester, Minnesota San Jose, California
© 2010, Hitachi Global Storage Technologies
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Complete Product Portfolio
Personal Storage
SimpleDRIVE, SimpleTOUGH and G-Technology
Endurastar
CinemaStar
Mobile 2.5-inch
Travelstar series
Desktop 3.5-inch
Deskstar series
Solid State Drives (SSD)
Enterprise 2.5/3.5-inch
Ultrastar series
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Recent Key Milestones
2007 2008 2009 2010
Recruit leadership team
Focus on profitable execution
Accelerate growth
SSD partnership with Intel Branded products acquisition Substrate manufacturing acquisition
© 2010, Hitachi Global Storage Technologies
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Improving Financial Performance
$B
6 5 4 3 2 1 0
Revenue
$5.6 $5.6
$4.8
2007 2008 2009
Operating Income / Margin %
$M
300 200 100 0 (100) (200) (300)
3.7%
2.2%
(5.1%)
2007 2008 2009
Gross Margin
20% 15% 10% 5%
17.8% 18.3%
8.9%
2007 2008 2009
Free Cash Flow *
$M
500 250 0 (250) (500)
$400 $393
($461)
2007 2008 2009
* Cash flow from operations net of Capex
Successful Business Transformation During Challenging Economic Period
© 2010, Hitachi Global Storage Technologies
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Competitive Overview
Hitachi GST
Segment
Share
Overall
15.6%
Mobile
20.3%
Desktop
10.5%
Enterprise
22.5%
Source: IDC 4Q09 WW HDD Shipments
Segments Competitors
Personal Storage
Mobile
Desktop
Enterprise
Seagate
Western
Digital
Samsung
Toshiba
Vertically Integrated
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Competitive Financial Trends
Hitachi has the Opportunity to Profitably Expand its Market Presence While Building Long-Term Value
Revenue
B$
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1Q Results
Gross Margin %
35%
30%
25%
20%
15%
10%
5%
0%
CY 3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
STX Rev
STX GM%
WDC Rev
WDC GM%
HGST Rev
HGST GM%
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Competitive Financial Trends
Hitachi has the Opportunity to Profitably Expand its Market Presence While Building Long-Term Value
Revenue
B$
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1Q Results
Gross Margin %
35%
30%
25%
20%
15%
10%
5%
0%
CY 4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
STX Rev
STX GM%
WDC Rev
WDC GM%
HGST Rev
HGST GM%
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Evolving Storage Markets – Threats & Opportunities
Storage continues to undergo a long-term transformation
Data Volume
Isolated PC &
Network Storage
Connectivity IP Networks & SANs
Data Storage
Cloud Computing
1980 1990 2000 2010
Change
Mobility and netbooks
Digital photography & HD video Social networking Unstructured data growth
Growth
Personal content Internet content and files Regulatory requirements Internet search
Efficiency
Virtualization Data de-duplication
Cloud storage & online services Low-cost infrastructure
© 2010, Hitachi Global Storage Technologies
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HDD Market Outlook
Industry Revenue Growth
(2009-2012 % CAGR)
Enterprise (SSD)
59.3%
Personal Storage
27.7
Mobile
10.5
Consumer Electronics 7.2
Enterprise (HDD)
(1.5)
Desktop
(7.8)
Total
7.4%
B$
40
33.9
30
20
10
0
IDC Forecast Update, Feb. 2010
2009
2010
2011
2012
M Units
800
700
600
500
400
300
200
100
0
Source: IDC Dec. 2009
Hitachi GST is Targeting Profitable Gains in High Growth Segments
© 2010, Hitachi Global Storage Technologies
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Strategic Focus Areas: 2010 and Beyond
Optimize long-term performance of the core HDD business
Optimize supply chain Improve asset utilization Realize profitable growth
Pursue new storage market opportunities for long-term revenue and earnings growth
Personal Storage Solid State Drives (SSD)
Continue disciplined investment in technology leadership
Strategic focus on new technologies and products Selective product differentiation
© 2010, Hitachi Global Storage Technologies
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Optimizing the Core – Key Elements
Hitachi GST Focus Areas
Market driven product planning
Technology competitiveness
Predictable and repeatable development process
Flexible and responsive manufacturing
Supply Chain Management (SCM) efficiency
Effective distribution channels
Market & Product Planning
Technology
Go To Market
Product Development
Supply Chain
Manufacturing
© 2010, Hitachi Global Storage Technologies
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Focus on Profitable Execution
Improving Gross Margin and Cost Efficiencies
Product mix optimization Supply chain efficiency Manufacturing footprint
Disciplined Approach to Managing Operating Expense
Improving operational execution to drive scale
Selective investments for higher margin opportunities
Capital Investments for Profitable Growth
Targeted investments for capacity and technology enhancements Productivity improvements and asset optimization
© 2010, Hitachi Global Storage Technologies
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Long-Term Financial Models
Financial Metrics
Gross Margin
Operating Expense % to Sales
Operating Margin
Capital Expense % to Sales
Seagate
22%-26%
10%-12%
10%-14%
6%-8%
Western Digital
18%-23%
9%-10%
10%-14%
7%
Source: Seagate: NASDAQ Investor Conference (12/1/09) WD: F2Q10 Earnings Call Transcript
Hitachi GST is Positioned to Have a Highly Competitive Long-Term Financial Model
© 2010, Hitachi Global Storage Technologies
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Hitachi GST 1Q10 Results
Financial Metrics
Revenue
Gross Margin
Operating Profit
Operating Margin
1Q10*
$1.46B
+42% YoY
$422M
28.9%
$217M
14.9%
1Q09*
$1.03B
$118M
11.5%
($57M)
(5.6%)
* Quarterly results are unaudited
Strong Financial Results and Ongoing Profitable Execution
© 2010, Hitachi Global Storage Technologies
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Integrated Value Creation Model
Value Creation
Growth Opportunities
Core Optimization
Core Improvements
2009 2010 2011 2012 2013 2014
Value Creation Levers
Complete core HDD optimization Expand storage portfolio Reduce debt through cash flow Invest in new storage technology Leverage partnerships & acquisitions
Build IP and Software Portfolio
Expand Beyond HDD For Revenue Growth & Increased GM
Disciplined Investment in Next Generation Technology
Improve Balance Sheet & Capital Structure
Optimized Long-term Value Creation
Attract & Retain World-class Talent
Strengthen HDD Cost Model
Improve Core Operational Execution
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Summary
Hitachi GST has a highly competitive, vertically-integrated business model
Company transformation continues with improving trends in sustained profitability and cash flow
Focused on responsible and profitable growth
Improving scalability with disciplined cost management
Optimizing core HDD business and building long-term leadership with differentiated, higher margin offerings
Hitachi GST is Poised for Industry Leading Growth and Long-Term Value Creation
© 2010, Hitachi Global Storage Technologies
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