Hitachi to Transfer Shares in Hitachi Procurement Service to Infosys, Panasonic, and PASONA

Tokyo, Japan, December 14, 2018 --- Hitachi, Ltd. (TSE:6501, “Hitachi”), Infosys Ltd. (NYSE:INFY, “Infosys”), Panasonic Corporation (TSE:6752, “Panasonic”), and Pasona Group Inc. (TSE:2168 “PASONA”), today announced that a contract was signed on December 14, 2018, regarding the transfer of part of the shares owned by Hitachi in Hitachi Procurement Service Co., Ltd. (“Hitachi Procurement Service”), Hitachi’s fully owned subsidiary that handles indirect materials*1 purchasing functions for the Hitachi Group, to Infosys, Panasonic, and Pasona Group’s subsidiary PASONA Inc. The transfer of shares is scheduled to take place on April 1, 2019.

*1 Indirect materials: materials used in a production process, but which can’t be linked to a specific product or job.

Recently, as a result of advancements in digitalization, digital technologies such as artificial intelligence (AI) and robotic process automation (RPA) are being applied in conventional tasks, and there has been a growing trend toward streamlining and increasing efficiency in work processes, while at the same time strengthening corporate competitiveness. This is true of corporate procurement operations as well, where companies are facing an urgent need to apply digital technologies in order to achieve efficient procurement activities that demonstrate high added value, and to contribute to further enhancing their competitive strength. The trend toward business process management (BPM) and Business Process Outsourcing (BPO) is also accelerating, for example in corporate procurement and accounting processes, and the related service market in Japan is expected to expand even further in the future.

In this backdrop, Hitachi, Infosys, Panasonic, and PASONA agreed to form a new company in order to combine their strengths and expertise, and to further strengthen the procurement function of indirect materials. Hitachi will transfer part of the shares in Hitachi Procurement Service to Infosys, Panasonic and PASONA, and the shareholder composition after the transfer will be as follows: Infosys: 81%; Hitachi: 15%; Panasonic: 2%; and PASONA: 2%. After the transfer is complete, the new company name will be HIPUS, Ltd. (“HIPUS”). HIPUS will combine Infosys’s expertise in procurement on a global scale, BPM platforms, and advanced IT technologies with PASONA’s human capital and BPO networks in Japan. Initially, it will strive to increase efficiency and added value through merits of scale, by applying BPO services in Hitachi’s and Panasonic’s procurement activities.

Furthermore, HIPUS will utilize Hitachi’s, Infosys’s and PASONA’s respective customer bases to introduce BPM and BPO services in processes such as procurement and purchasing operations, and will roll out a broad range of other businesses as well, for example by introducing consulting, reverse auctions*2, and other purchasing schemes, and by providing training services related to procurement. In this way, it will aim to achieve transaction volumes on a scale of 400 billion yen*3 in FY2021.

*2 Reverse auction: a type of auction in which sellers bid for the prices at which they are willing to sell their goods and services.

*3 Hitachi Procurement Service’s transaction volumes during the year ended March 2018 totaled 103.0 billion yen.

Outline of the share transfer contract

Outline

Of the regular shares in Hitachi Procurement Service. owned by Hitachi, 81% will be transferred to Infosys, 2% to Panasonic, and 2% to PASONA.

Date of signing of the share transfer contract

Dec 14, 2018

Date of share transfer execution

April 1, 2019 (tentative)

Outline of the companies

  1. New company
  1. Corporate name

HIPUS, Ltd.

  1. Representative

TBD

  1. Head Office

2-2-1 Otemachi, Chiyoda-ku, Tokyo 100-8228, Japan

  1. Establish

April 1, 2019 (The date when the corporate name will be changed from Hitachi Procurement Service.)

  1. Outline of business

BPM and BPO services in processes such as procurement and purchasing operations, etc.

  1. End of accounting period

March 31

  1. Number of employees

210

  1. Capital

JPY 500million

  1. Shareholders

Infosys, Hitachi, Panasonic and PASONA

  1. Hitachi, Ltd.
  1. Corporate name

Hitachi, Ltd.

  1. Representative

President & CEO, Toshiaki Higashihara

  1. Head Office

6-6 Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan

  1. Established

February 1, 1920

  1. Outline of business

Development, manufacture and sales of products and provision of service across eight segments: Information & Telecommunication Systems, Social Infrastructure & Industrial Systems, Electronic Systems & Equipment, Construction Machinery, High Functional Materials & Components, Automotive Systems, Smart Life & Ecofriendly Systems, Other

  1. End of accounting period

March 31

  1. Sales

JPY 9,368.6 billion

  1. Number of employees

307,275 (as of March 31, 2018)

  1. Hitachi Procurement Service Co., Ltd.
  1. Corporate name

Hitachi Procurement Service Co., Ltd.

  1. Representative

President, Shinichiro Nagagata

  1. Head Office

2-2-1 Otemachi, Chiyoda-ku, Tokyo, Japan

  1. Established

June 4, 2002

  1. Outline of business

Procurement solution services

(Commissioned procurement business, centralized purchasing of indirect materials through internet, export & import, procurement consulting, BPO services, and information tools for procurement)

  1. End of accounting period

March 31

  1. Number of employees

210 (as of March 31, 2018)

  1. Infosys, Ltd.
  1. Corporate name

Infosys Limited

  1. Representative

CEO & MD, Salil Parekh

  1. Head Office

Bengaluru, India

  1. Established

1981

  1. Outline of business

Next-generation digital services and consulting

  1. End of accounting period

March 31

  1. Sales

US$10.93 billion(March 31, 2018).

  1. Number of employees

217,700+ employees

  1. Panasonic Corporation
  1. Corporate name

Panasonic Corporation

  1. Representative

President, Kazuhiro Tsuga

  1. Head Office

1006, Oaza Kadoma, Kadoma-shi, Osaka, Japan

  1. Established

December 15, 1935

  1. Outline of business

Manufacturing, sales and service of a comprehensive range of electronics products, including parts, home electronics, household appliances, FA equipment, IT devices and housing-related equipment

  1. End of accounting period

March 31

  1. Sales

JPY 7,982.2 billion (FY2018, ended March 31, 2018)

  1. Number of employees

274,143 (as of March 31, 2018)

  1. Pasona Group Inc.
  1. Corporate name

Pasona Group Inc.

  1. Representative

Group CEO, Yasuyuki Nambu

  1. Head Office

2-6-2 Otemachi, Chiyoda-ku, Tokyo, Japan

  1. Established

December 3, 2007

  1. Outline of business

 Independent Work System(Temporary staffing)

 Insourcing(Contracting)

 HR Consulting, education and training, others

 Global Sourcing (Overseas)

 Career Solutions (Placement/Recruiting, Outplacement)

 Outsourcing

 Life Solutions

 Public Solutions

  1. End of accounting period

May 31

  1. Sales

JPY 311.4 billion

  1. Number of employees

9,074 (consolidated, including contract workers)

About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society’s challenges. The company’s consolidated revenues for fiscal 2016 (ended March 31, 2017) totaled 9,162.2 billion yen ($81.8 billion). The Hitachi Group is a global leader in the Social Innovation Business, and it has approximately 304,000 employees worldwide. Through collaborative creation, Hitachi is providing solutions to customers in a broad range of sectors, including Power / Energy, Industry / Distribution / Water, Urban Development, and Finance / Government & Public / Healthcare. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

About Infosys Ltd.

Infosys is a global leader in next-generation digital services and consulting. We enable clients in 45 countries to navigate their digital transformation. With over three decades of experience in managing the systems and workings of global enterprises, we expertly steer our clients through their digital journey. We do it by enabling the enterprise with an AI-powered core that helps prioritize the execution of change. We also empower the business with agile digital at scale to deliver unprecedented levels of performance and customer delight. Our always-on learning agenda drives their continuous improvement through building and transferring digital skills, expertise, and ideas from our innovation ecosystem. Visit http://www.infosys.com to see how Infosys (NYSE: INFY) can help your enterprise navigate your next.

About Panasonic Corporation

Panasonic Corporation is a worldwide leader in the development of diverse electronics technologies and solutions for customers in the consumer electronics, housing, automotive, and B2B businesses. The company, which celebrated its 100th anniversary in 2018, has expanded globally and now operates 591 subsidiaries and 88 associated companies worldwide, recording consolidated net sales of 7.982 trillion yen for the year ended March 31, 2018. Committed to pursuing new value through innovation across divisional lines, the company uses its technologies to create a better life and a better world for its customers. To learn more about Panasonic: http://www.panasonic.com/global.

About Pasona Group Inc.

Ever since its foundation in 1976, Pasona Group’s corporate philosophy, “Providing Solutions to Society’s Problems” has not changed.  The Company has aimed to build a better society and to create an infrastructure that provides each individual the opportunity to work and the freedom to choose the job of his or her choice.

Pasona provides HR Solutions worldwide (Temporary staffing, Contracting, HR Consulting, Place & Search, Global Sourcing, Outplacement, Outsourcing), and Life Solutions such as services in the childcare and elderly care area.  The Company is also engaged in promoting local revitalization.