Hitachi, Ltd. - Conclusion of Absorption-Type Split Agreement for Reorganization of IT Products Business
January 29, 2024 at 03:32 pm
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Tokyo - Hitachi, Ltd. (TSE: 6501, 'Hitachi') announced on October 27, 2023 that, for the purpose of global reorganization, Hitachi's IT Platform Products Management Division, which has been responsible for business development, research/development, and production of data infrastructure in Japan, will be succeeded by the newly established Hitachi Vantara, Ltd. through an absorption-type split ('Company Split'), effective April 1, 2024.1
Today, IT Platform Products Management Division entered into an absorption-type split agreement ('the Agreement') for the company split and hereby announces the matters that were undecided in the press release dated 27 October 2023 and other matters as follows. The undecided matters are underlined and the partially changed matters are underlined.
Hitachi Vantara, Ltd. will promote the design and development of storage and other data infrastructure products, data management software, hybrid cloud infrastructure and related services and sales, operation, monitoring and maintenance services in Japan. Akinobu Shimada, General Manager of IT Platform Products Management Division, will assume the role of President of Hitachi Vantara, Ltd.
In addition, Hitachi Vantara, Ltd. and Hitachi Vantara LLC will strengthen mutual management as the re-aligned Hitachi Vantara and further integrate global storage manufacturing and sales, service operating structure to support Hitachi's technology strategy by providing hybrid cloud storage and common platform for Generative AI under a strong unified brand.
About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the business structure of 'Digital Systems & Services' - supporting our customers' digital transformation; 'Green Energy & Mobility' - contributing to a decarbonized society through energy and railway systems, and 'Connective Industries' - connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company's consolidated revenues for fiscal year 2022 (ended March 31, 2023) totaled 10,881.1 billion yen, with 696 consolidated subsidiaries and approximately 320,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.
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 'forwardlooking 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 report.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).
HITACHI, LTD. 
