Hitachi Cable, Ltd.© 2007 Hitachi Cable, Ltd. All rights reserved. 5 1.Hitachi Cable Group...
Transcript of Hitachi Cable, Ltd.© 2007 Hitachi Cable, Ltd. All rights reserved. 5 1.Hitachi Cable Group...
Hitachi Cable, Ltd.Auto Parts Business Strategy
March 30, 2007
Shinichi SusukidaExecutive OfficerDeputy Group Executive, Electronic & Automotive Products Group General Manager,Automotive Business Promotion Center
2© 2007 Hitachi Cable, Ltd. All rights reserved.
Auto Parts Auto Parts Business StrategyBusiness Strategy
Contents
3.Initiatives Targeting FY2011
2.The Auto Parts Business
1.Hitachi Cable Group Initiatives
3© 2007 Hitachi Cable, Ltd. All rights reserved.
1.Hitachi Cable Group Initiatives
(1)Company Overview
Established: April 10, 1956 Capital: ¥25.9 billion
Representative: Norio Sato, President & CEO
Consolidated net sales: ¥425.1 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)
4© 2007 Hitachi Cable, Ltd. All rights reserved.
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
5© 2007 Hitachi Cable, Ltd. All rights reserved.
1.Hitachi Cable Group Initiatives
(3)Medium-Term Management Plan “BEGIN”—Basic Growth Strategy
Progress in manufacturing
Progress inhuman assets development
Business growth and expansionSustained growth in profitability
Business growth and expansionSustained growth in profitability
Record stable profits in core businesses and concentrate resources in fields promising growth Record stable profits in core businesses and concentrate resources in fields promising growth
FY07 Plan BEGIN: Breaking through with our Energy and Going for INnovation approach
“Begin Transformation by Mustering Group-wide Strengths”
+
StructuralReform Phase
New Growth Phase
Com
pany
’s Se
cond
Foun
datio
n
Com
pany
’s Se
cond
Foun
datio
n
6© 2007 Hitachi Cable, Ltd. All rights reserved.
1.Hitachi Cable Group Initiatives
(4)Medium-Term Management Plan “BEGIN”—Concentration of Management Resources
●Electronics wires and cables (industrial cables and magnet wires)
●Copper products
●Brake hoses
●Electronics (digital home appliances and semiconductors)
●Wireless, broadcasting and information networks
●Automotive (HEV, electric components, and sensors)
Aggressive investments in major target fields
Ensure profits from core products
Concentrate management resources on major target fields
7© 2007 Hitachi Cable, Ltd. All rights reserved.
Auto PartsAuto PartsBusiness StrategyBusiness Strategy
Contents
3.Initiatives Targeting FY2011
2.The Auto Parts Business
1.Hitachi Cable Group Initiatives
8© 2007 Hitachi Cable, Ltd. All rights reserved.
FY06 ¥425.1 billion
44(1%)
Others
2.The Auto Parts Business
(1)Positioning of the Auto Parts Business
Auto Parts Auto Parts BusinessBusiness
1,955(46%)
1,519(36%)
732(17%)
Wires and Cables
Information and Telecommunications Networking
Sophisticated Materials
11%
9© 2007 Hitachi Cable, Ltd. All rights reserved.
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. 1994 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
companyExpanded HEV power cable harness factory in the U.S.
10© 2007 Hitachi Cable, Ltd. All rights reserved.
2.The Auto Parts Business
(3)Medium-Term Plan Targets
[[FY2011 Business Scale: FY2011 Business Scale: ¥¥80.0 Billion80.0 Billion ]]
*Targets set when the Automotive Business Promotion Center was established in FY2006 (Copper: ¥500 thousand/ton)
Actual Forecast Target Target Target Target
0
20.0
40.0
60.0
80.0
100.0
巻線
2006 2007 2008 2009 2010 2011
TargetTarget
41.645.046.9
58.0
80.0
6.5
12.6
9.0
18.8
(bill
ion/
year
)
Sophisticated materials
Magnet wires
Electric parts
Hoses
FY
11© 2007 Hitachi Cable, Ltd. All rights reserved.
2.The Auto Parts Business
(4)Market Environment and Basic Strategies
Key Target Fields
Core Product FieldsTarget 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
Grow by introducing products in a timely manner to respond to “environmental issues”, “enhance safety” and
“facilitate onboard information systems”
<Hitachi Cable’s Strategy>
Increasing demand for electric motors stemming from environmental issues and surging oil pricesEnvironmentEnvironment
<Technology Trends>
Increasing driving and pedestrian safetySafetySafety
InformationInformationAdvances in equipping cars with information systems, such as next-generation telematics
12© 2007 Hitachi Cable, Ltd. All rights reserved.
NavigationTelematics
Information
Brakes Steering Suspension
Safety
Motors Inverters Batteries
Environmen
t
2.The Auto Parts Business
(5)Hitachi Group’s Targeted System Fields
13© 2007 Hitachi Cable, Ltd. All rights reserved.
2.The Auto Parts Business
(6)Environment-Related Products
HEV power cable harnesses Magnet wires for HEVsDual-gauge copper strips for power devices
Environment
14© 2007 Hitachi Cable, Ltd. All rights reserved.
2.The Auto Parts Business
(7)Drive Control System-Related Products
*ABS: antilock brake system
ABS sensors Brake hosesTorque sensor coils
Safety
15© 2007 Hitachi Cable, Ltd. All rights reserved.
(8)Car Information System-Related Products
UWB: ultra-wideband FFC: flexible flat cable
Car antennas for telematics Shielded FFC for automotive useWireless LAN, UWB antennas
Information
2.The Auto Parts Business
16© 2007 Hitachi Cable, Ltd. All rights reserved.
2.The Auto Parts Business
(9)Global Development of Hose and Electric Components Businesses
Wales
Ayutthaya, Thailand Philippines
DetroitSuzhou, Jiangsu Province, China Indiana
Mexico
Densen Works Takasago Works
17© 2007 Hitachi Cable, Ltd. All rights reserved.Thailand Johor, Malaysia
Magnet wires: Hitachi Magnet Wire Corp.
Sophisticated materials: TsuchiuraWorks
2.The Auto Parts Business
(10) Global Development of the Magnet Wire and Sophisticated Materials Businesses Shanghai, China
18© 2007 Hitachi Cable, Ltd. All rights reserved.
Auto Part Business StrategyAuto Part Business Strategy
Contents
3.Initiatives Targeting FY2011
2.The Auto Parts Business
1.Hitachi Cable Group Initiatives
19© 2007 Hitachi Cable, Ltd. All rights reserved.
3.Initiatives Targeting FY2011
(1)Brake Hoses
・Hitachi Cable market share target (Global) 2006 201013% 20%
・Establish global framework capable of supplying 50 million units/year
Start Hose Production in Thailand Location : Amata Nakorn Industrial Estate,
Chonburi Site area : 13,450 ㎡ Start production : 2008
Topics
Establish Assembly Factory in China Location : Suzhou (on existing Hitachi Cable (Suzhou) Co., Ltd. site) Start production : 2007
20© 2007 Hitachi Cable, Ltd. All rights reserved.
3.Initiatives Targeting FY2011
(2)HEV Power Cable Harnesses
HEV harness production facility
Facility expansion
Expand Production Facilities at Hitachi Cable Indiana, Inc.New capacity on-stream : 2007Sales target : ¥6.0 billion/year (¥3.5 billion/year in North America)
(2010 target)
Topic
AC power cable harness for HEVs AC power cable harness for HEVs
・Cater to increasing number of hybrid vehicles in North America・Strengthen system for joint development in Japan and the U.S.
・Cater to increasing number of hybrid vehicles in North America・Strengthen system for joint development in Japan and the U.S.
21© 2007 Hitachi Cable, Ltd. All rights reserved.
HEV駆動用モーター及び巻線
(3)Magnet Wires
・Respond to trend for smaller, more efficient HEV electric motors with higher voltage・Increase automotive applications in the magnet wire business from 30% to 50%
・Respond to trend for smaller, more efficient HEV electric motors with higher voltage・Increase automotive applications in the magnet wire business from 30% to 50%
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
Topic
導体 導体導体 導体
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.
Partial discharge
What is an Inverter Surge?
ConductorConductor
High lubricated layerStructure
Silica particle size 15 to 20nm
周波数 : 50kHz試験温度: 90℃
耐インバーターサージ性ポリアミドイミド線KMKED-22A
汎用ポリアミドイミド線
Polyamide-imide Layer
Conductor Conductor
Frequency: 50kHz Test temperature: 90℃
Inverter Surge Voltage Endurance Life Characteristics
App
lied
Vol
tage
(kV
p)
Time to Failure (h)
1.0
1.5
2.0
2.5
3.0
0.01 0.1 1 10 100 1000 10000
Inverter surge-resistant polyamide-imide wire
General-purpose polyamide-imide wire
3.Initiatives Targeting FY2011
22© 2007 Hitachi Cable, Ltd. All rights reserved.
(4)Sophisticated Materials
・Attain copper materials technology for achieving high strength, high conductivity and high heat dissipation
- Develop a varied lineup of copper products, including high-purity oxygen-free copper, and alloys boasting high strength and conductivity
・Attain copper materials technology for achieving high strength, high conductivity and high heat dissipation
- Develop a varied lineup of copper products, including high-purity oxygen-free copper, and alloys boasting high strength and conductivity
Rolled Copper Foil
・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.
Copper foil (negative electrode material)
Lithium-ion battery
High-heat dissipation dual-gauge copper strips
Profile of dual-gauge copper strips
・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.
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.
3.Initiatives Targeting FY2011
23© 2007 Hitachi Cable, Ltd. All rights reserved.
(5)Antennas for Telematics
・Development of integrated car antennas for telematics communication services in North America
・Aim to enter automotive wireless communication field in North America
・Development of integrated car antennas for telematics communication services in North America
・Aim to enter automotive wireless communication field 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.
・Achieves reduced interference and optimal directional characteristics in all communication formats・Low-profile antennas due to compact,
flat antenna design technology
Features
Cellular Antenna
GPS Antenna
Sale
s(T
hous
and
units
)
GPS / XM radio Antenna
Cellular Antenna
0
0
10,000
20,000
30,000
40,000
50,000
2002 2005 2008 2011
North America Europe Asia, etc.
3.Initiatives Targeting FY2011
Source: TRI
Telematics System Market
24© 2007 Hitachi Cable, Ltd. All rights reserved.
(6)Summary
Actively invest in key target fields
Ensure profits from core products
・Magnet wires: increase share of automotive applications from 30% to 50%
・Brake hoses: establish factories in Thailand and China
・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
3.Initiatives Targeting FY2011
25© 2007 Hitachi Cable, Ltd. All rights reserved.
Notes:The business performance figures given in this document for Fiscal 2008 and beyond represent business performance projections or targets as of March 30, 2007. 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 developnew products and technologies, to bring products to market in a timely fashion, and to achieve low-cost productionFluctuations in product and material markets and in the conditions of such marketsFluctuations in foreign-exchange ratesThe fund-raising environmentThe 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 circumstancesProtection of the Company’s own patents and securing rights to use other companies’ patentsPartnerships with other companies in areas such as product developmentFluctuations 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 DepartmentAttn.: Akiyama, TsubouchiTel. +81-3-6381-1050
26© 2007 Hitachi Cable, Ltd. All rights reserved.
Auto Parts Business Strategy