Hitachi Cable, Ltd. Auto Parts Business Strategy

Transcription

1 Hitachi Cable, Ltd. Auto Parts Business Strategy March 30, 2007 Shinichi Susukida Executive Officer Deputy Group Executive, Electronic & Automotive Products Group General Manager, Automotive Business Promotion Center

2 Auto Parts Business Strategy Contents 1.Hitachi Cable Group Initiatives 2.The Auto Parts Business 3.Initiatives Targeting FY2011 2

3 1.Hitachi Cable Group Initiatives (1)Company Overview Established: April 10, 1956 Capital: 25.9 billion Representative: Norio Sato, President & CEO Consolidated net sales: billion (FY06) Consolidated operating income: 11.0 billion (FY06) Consolidated workforce: 15,199 employees (As of March 31, 2006) Stock exchange listings: 1st Section, Tokyo and Osaka stock exchanges (Code: 5812) Consolidated subsidiaries: 44 companies (domestic: 18; overseas: 26; as of March 31, 2006) 3

4 1.Hitachi Cable Group Initiatives (2)Basic Management Approach Corporate Vision Devoting Ourselves to Peak Performance in Communication Contributing to society by continuing to improve the speed, accuracy and efficiency of energy and information Code of Conduct Surpass Customers Expectations Continue to Progress in Manufacturing Keep to the Straight and Narrow 4

5 1.Hitachi Cable Group Initiatives (3)Medium-Term Management Plan BEGIN Basic Growth Strategy FY07 Plan BEGIN: Breaking through with our Energy and Going for INnovation approach Begin Transformation by Mustering Group-wide Strengths Company s Company s Second Second Foundation Foundation Business growth and expansion Sustained growth in profitability Record stable profits in core businesses and concentrate resources in fields promising growth Structural Reform Phase Progress in manufacturing + New Growth Phase Progress in human assets development 5

6 1.Hitachi Cable Group Initiatives (4)Medium-Term Management Plan BEGIN Concentration of Management Resources Concentrate management resources on major target fields Aggressive investments in major target fields Electronics (digital home appliances and semiconductors) Wireless, broadcasting and information networks Automotive (HEV, electric components, and sensors) Ensure profits from core products Electronics wires and cables (industrial cables and magnet wires) Copper products Brake hoses 6

7 Auto Parts Business Strategy Contents 1.Hitachi Cable Group Initiatives 2.The Auto Parts Business 3.Initiatives Targeting FY2011 7

8 2.The Auto Parts Business (1)Positioning of the Auto Parts Business Auto Parts Business 11% Wires and Cables 1,955 (46%) Others 44 (1%) 732 (17%) Sophisticated Materials 1,519 (36%) Information and Telecommunications Networking FY billion 8

9 2.The Auto Parts Business (2)Business History Milestones 1969 Started automotive hose business delivered brake hoses 1971 Started production of automotive wire 1987 Established hose manufacturing company in the U.S Established hose manufacturing company in Mexico 1996 Started producing electric parts started producing ABS sensors 1999 Established hose manufacturing company in the Philippines 2000 Established hose manufacturing company in the U.K. Started producing power supply cables for HEVs 2003 Established hose manufacturing company in Thailand Expanded magnet wire business delivered rectangular magnet wires for HEVs 2005 Established Automotive Business Promotion Center 2006 Started production of hoses in China 2007 Relocated and expanded Thai hose manufacturing company Expanded HEV power cable harness factory in the U.S. 9

10 2.The Auto Parts Business (3)Medium-Term Plan Targets [FY2011 Business Scale: 80.0 Billion ] (billion/year) Sophisticated materials 巻 Magnet 線 wires Electric parts Hoses 0 FY Target Actual Target Forecast Target Target Target Target *Targets set when the Automotive Business Promotion Center was established in FY2006 (Copper: 500 thousand/ton) 10

11 2.The Auto Parts Business (4)Market Environment and Basic Strategies <Technology Trends > Environment Increasing demand for electric motors stemming from environmental issues and surging oil prices Safety Information Increasing driving and pedestrian safety Advances in equipping cars with information systems, such as next-generation telematics <Hitachi Cable s Strategy > Key Target Fields Grow by introducing products in a timely manner to respond to environmental issues, enhance safety and facilitate onboard information systems Core Product Fields Target steady growth in the global market centered on brake hoses Core technologies accumulated in critical safety parts, management capabilities Chance to enter market due to restructuring of the auto parts industry in North America 11

12 2.The Auto Parts Business (5)Hitachi Group s Targeted System Fields Environmen Motors Inverters Batteries t Safety Information Brakes Steering Suspension Navigation Telematics 12

13 2.The Auto Parts Business (6)Environment-Related Products Environment HEV power cable harnesses Dual-gauge copper strips for power devices Magnet wires for HEVs 13

14 2.The Auto Parts Business (7)Drive Control System-Related Products Safety ABS sensors Torque sensor coils Brake hoses *ABS: antilock brake system 14

15 2.The Auto Parts Business (8)Car Information System-Related Products Information Car antennas for telematics Wireless LAN, UWB antennas Shielded FFC for automotive use UWB: ultra-wideband FFC: flexible flat cable 15

16 ２ The Auto Parts Business ９ Global Development of Hose and Electric Components Businesses Wales Suzhou, Jiangsu Province, China Detroit Indiana Mexico Ayutthaya, Thailand Philippines Densen Works Takasago Works 16

17 ２ The Auto Parts Business １０ Global Development of the Magnet Wire and Sophisticated Materials Businesses Shanghai, China Thailand Johor, Malaysia Magnet wires: Hitachi Magnet Wire Corp. Sophisticated materials: Tsuchiura Works 17

18 Auto Part Business Strategy Contents 1.Hitachi Cable Group Initiatives 2.The Auto Parts Business 3.Initiatives Targeting FY

19 3.Initiatives Targeting FY2011 (1)Brake Hoses Establish global framework capable of supplying 50 million units/year Hitachi Cable market share target (Global) % 20% Topics Start Hose Production in Thailand Location : Amata Nakorn Industrial Estate, Chonburi Site area : 13,450 m2 Start production : 2008 Establish Assembly Factory in China Location : Suzhou (on existing Hitachi Cable (Suzhou) Co., Ltd. site) Start production :

20 3.Initiatives Targeting FY2011 (2)HEV Power Cable Harnesses Cater to to increasing number of of hybrid vehicles in in North America Strengthen system for joint development in in Japan and the U.S. Topic Expand Production Facilities at Hitachi Cable Indiana, Inc. New capacity on-stream : 2007 Sales target : 6.0 billion/year ( 3.5 billion/year in North America) (2010 target) AC power cable harness for HEVs HEV harness production facility Facility expansion 20

21 3.Initiatives Targeting FY2011 (3)Magnet Wires Respond to to trend for smaller, more efficient HEV electric motors with higher voltage Increase automotive applications in in the magnet wire business from 30% to to 50% Topic Leading the Industry in Development of Inverter Surge Resistant Enameled Wire Helps motors achieve a longer life and higher reliability by minimizing insulation degradation caused by partial discharges which are difficult to detect during inverter surges. Heat resistant to 220, the highest level in Japan Controls formation of composite made up of organic and inorganic materials at the nanometer level What is an Inverter Surge? Unusually high voltage released by an inverter. This results in a partial discharge, which breaks down membranes and can quickly degrade insulation, causing motor failure. Conductor 導体 Conductor 導体 Partial discharge Structure High lubricated layer Polyamide-imide Layer Applied Voltage (kvp) Inverter Surge Voltage Endurance Life Characteristics 周 Frequency: 波数 : 50kHz 50kHz 試 Test 験温 temperature: 度 : Inverter surge- 耐インハーターサーシ性 resistant polyamideimide wire 線ホリアミトイミト KMKED-22A Conductor Silica particle size 15 to 20nm HEV 駆動用モーター及び巻線 1.5 General-purpose 汎用ホリアミトイミト線 polyamide-imide wire Time to Failure (h) 21

22 3.Initiatives Targeting FY2011 (4)Sophisticated Materials Attain copper copper materials technology for for achieving high high strength, high high conductivity and and high high heat heat dissipation - Develop Develop a a varied varied lineup lineup of of copper copper products, products, including including high-purity high-purity oxygen-free oxygen-free copper, copper, and and alloys alloys boasting boasting high high strength strength and and conductivity conductivity Increasing use of electronics in cars Cars are being fitted with more electronics to respond to environmental issues, enhance safety and facilitate onboard information systems. Consequently, there is growing demand for technologies that can ensure the reliability of control units, batteries and other components in terms of heat dissipation and conductivity. High-heat dissipation dual-gauge copper strips Rolled Copper Foil Heat sink materials compatible with the larger currents of today s semiconductors Used as a high heat dissipation lead frame material for IGBT cooling modules, LEDs, etc. Used in negative electrode material for lithium-ion batteries in HEVs High-precision rolling technology enables the manufacture of copper foil with uniform thickness and stable flatness. Profile of dual-gauge copper strips Copper foil (negative electrode material) Lithium-ion battery 22

23 3.Initiatives Targeting FY2011 (5)Antennas for Telematics Development of of integrated car car antennas for for telematics communication services in in North America Aim to to enter automotive wireless communication field in in North America As a leading manufacturer of wireless LAN antennas for notebook PCs, Hitachi Cable has accumulated advanced design and development technologies and simulation and analysis technologies Provide antennas for GPS, SDARS (satellite radio), cellular phones and wireless LAN (11a, b, g 16e) in a single unit Respond to automotive needs, including flexibility in car design, security (tracking stolen vehicles), etc. Sales (Thousand units) 50,000 40,000 30,000 20,000 10, Telematics System Market North America Europe Asia, etc. Source: TRI Features GPS Antenna Achieves reduced interference and optimal directional characteristics in all communication formats Low-profile antennas due to compact, flat antenna design technology GPS / XM radio Antenna Cellular Antenna Cellular Antenna 23

24 3.Initiatives Targeting FY2011 (6)Summary Actively invest in key target fields Antennas: Develop antennas for telematics communication services in North America Sophisticated materials: Expand lineup of high-strength, high-conductivity products with high heat dissipation characteristics Electric parts: Ramp up manufacturing of power cable harnesses for HEVs in North America Magnet wires: Develop magnet wires for HEV electric motors Ensure profits from core products Magnet wires: increase share of automotive applications from 30% to 50% Brake hoses: establish factories in Thailand and China 24

25 Notes: The business performance figures given in this document for Fiscal 2008 and beyond represent business performance projections or targets as of March 30, These figures are based on certain assumptions deemed reasonable as of the time at which the Company prepared this document. Actual business performance may vary significantly from the projections and targets given here. Listed below are some of the primary factors responsible for such variations: Economic conditions in key markets (particularly Japan, the United States, and Asia) The capacity of the Company and group members to respond to rapid technological change, to develop new products and technologies, to bring products to market in a timely fashion, and to achieve low-cost production Fluctuations in product and material markets and in the conditions of such markets Fluctuations in foreign-exchange rates The fund-raising environment The abilities of the Company and members of its group of companies to respond to fluctuations in product demand and supply conditions, product market conditions, foreign-exchange market conditions, and other circumstances Protection of the Company s own patents and securing rights to use other companies patents Partnerships with other companies in areas such as product development Fluctuations in the conditions of the Japanese stock markets Copyright notice: This document is copyrighted in its entirety by Hitachi Cable, Ltd., which retains all rights to this document. Unauthorized reproduction or reuse by any means whatsoever is strictly prohibited. Please address inquiries to: Hitachi Cable, Ltd. Corporate Communication Section, Administration Department Attn.: Akiyama, Tsubouchi Tel

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