Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2011)
24 slides from Hitachi's investor day presentation, Jun 16, 2011
Slide 1: Urban Planning and Development Systems Business Strategy
Urban Planning and Development Systems Business Strategy Hitachi IR Day 2011 June 16, 2011 Toshio Ikemura Vice President and Executive Officer President & CEO Urban Planning and Development Systems Company Hitachi, Ltd. © Hitachi, Ltd. 2011. All rights reserved.
Slide 2: Contents
Urban Planning and Development Systems Business Strategy Contents 1. Business Overview and Market Trends 2. Business Strategy (Japan) 3. Business Strategy (Overseas) 4. Business Performance Trends and Targets © Hitachi, Ltd. 2011. All rights reserved.
Slide 3: 1-1 Business Overview
1-1 Business Overview Building FM* Elevator and business, etc. (28%) Escalator business (72%) Security Manufacture, sales, installation, Video surveillance systems maintenance and modernization Room access control systems of elevators and escalators Energy saving FY2010 Energy saving assessment Cons
Slide 4: 1-2 Market Trends
1-2 Market Trends *Hitachi estimates Elevator and Escalator Market Size Building FM Market Size (Thousand units) (Japan, Trillion yen) Japan Asian belt zone Other Apr. 2010 Increasing demand from enforcement of the 543 578 revised Energy Conservation Law 501 504 470 193 191 400 210 182 192 1.35 1.43
Slide 5: 1-3 Growth Strategy
1-3 Growth Strategy Japan Elevators and Escalators Strengthen and expand elevator and escalator modernization business to meet growing refurbishment demand. Building FM Provide high-value-added services for whole buildings linked to products of energy saving and security. Overseas Elevators and Esca
Slide 6: Contents
Urban Planning and Development Systems Business Strategy Contents 1. Business Overview and Market Trends 2. Business Strategy (Japan) 3. Business Strategy (Overseas) 4. Business Performance Trends and Targets © Hitachi, Ltd. 2011. All rights reserved.
Slide 7: 2-1 (Japan) Elevator and Escalator Business, Building FM Business
Business Strategy 2-1 (Japan) ■Hitachi’s elevators and escalators Elevator and Escalator Business Comparison of Modernization Orders and New Equipment Orders Demand associated with restoration and *Unit base year FY2008=100 rebuilding after Modernization the Great East Japan Earthquake Respond quick
Slide 8: 2-2 Elevators and Escalators Business
2-2 Elevators and Escalators Business Providing rapid and ongoing support for restoration and rebuilding efforts Rapid initial response Leveraged benefits of nationwide disaster response drills to send 118 support personnel to disaster-stricken areas on March 11. (A total of 2,000 people provided su
Slide 9: 2-3 Building FM Business
2-3 Building FM Business Strengthen response to energy-reduction and energy-saving demand. Offer support for saving energy via the BIVALE, a cloud type Integrated building control system Build cloud systems utilizing existing service infrastructure Remotely control energy use for each tenant from co
Slide 10: Contents
Urban Planning and Development Systems Business Strategy Contents 1. Business Overview and Market Trends 2. Business Strategy (Japan) 3. Business Strategy (Overseas) 4. Business Performance Trends and Targets © Hitachi, Ltd. 2011. All rights reserved.
Slide 11: 3-1 Global Elevators and Escalators Market
Market Trends 3-1 (Global Elevators and Escalators Market) FY2010→FY2012 New Equipment Market Trends (Thousand units, Hitachi estimates) 304 252 578 504 Global 14 16 27 33 China Middle East 367 Asian India 305 belt zone 12 14 FY2010 FY2012 FY2010 FY2012 Southeast Asia 305 367 Asian belt zone Asia be
Slide 12: 3-2 Global Elevator and Escalator Market Business Strategy
Business Strategy 3-2 (Global Elevator and Escalator Market) China Bolster production system further in line with order expansion Expand and upgrade sales and service bases with an eye on expanding the maintenance business. Southeast Asia, India and Middle East Strengthen business structure led by A
Slide 13: 3-3 Regional Business Strategy (China)
3-3 Regional Business Strategy (China) Increase production capacity and expand and upgrade sales and service bases to respond to market needs. Production system Increase output further by lifting production capacity at existing bases and through construction of a new plant Bases Details Tianjin Rais
Slide 14: 3-4 Regional Business Strategy (Southeast Asia, India, Middle East)
Regional Business Strategy 3-4 (Southeast Asia, India, Middle East) Expand business by strengthening local project control centers Hitachi Elevator Asia Pte. Ltd. Hong Other India Thailand Malaysia Singapore Philippines Distributors Kong Participation of regional HQ Develop personnel staffs in manag
Slide 15: 3-5 Development / Manufacturing Delivery Framework
Business Strategy 3-5 (Development / Manufacturing Delivery Framework) Strengthen framework through cooperation among Japan, China and Southeast Asia bases Create highly efficient development / manufacturing and delivery framework aligned to market characteristics Development base Type Location Main
Slide 16: 3-6 Large Orders Awarded
3-6 Large Orders Awarded DONGGUAN TBA TOWER Wuxi Guolian Financial Building 70-floor, 290 m-tall building High-speed elevators: 22 units A total of 60 elevators and escalators, including 39 ultra-high-speed and high-speed elevators, and 8 escalators Al Hikmah Tower 61-floor, 231 m-tall building Wuxi
Slide 17: 3-7 Future Business Development
Future Business Development 3-7 (Global Elevator and Escalator Market) Tianjin Japan China regional HQ (Guangzhou) Shanghai Kuwait Delhi Dubai Guangzhou Muscat Jeddah Hong Kong Bangkok Manila Ho Chi Minh City Kuala Lumpur Singapore Asia regional HQ (Singapore) Jakarta Direction of China: Expand from
Slide 18: Contents
Urban Planning and Development Systems Business Strategy Contents 1. Business Overview and Market Trends 2. Business Strategy (Japan) 3. Business Strategy (Overseas) 4. Business Performance Trends and Targets © Hitachi, Ltd. 2011. All rights reserved.
Slide 19: 4-1 Business Performance Trends
4-1 Business Performance Trends 36% 34% 31% 28% Operating income Revenues Overseas revenue ratio (Billion yen) ratio (%) 12 < >: Base year FY09 revenues=100 500 〈107〉 10 〈100〉 〈103〉 〈103〉 420.0 393.8 404.5 407.0 400 8 7.6% 8.0% 7.4% 300 6.7% 6 200 4 100 2 0 0 FY2009 FY2010 FY2011 FY2012 (Forecast) (
Slide 20: 4-2 FY2010 Financial Results (Actual)
4-2 FY2010 Financial Results (Actual) FY2010 Financial Results (Actual) (Billion yen) FY2009 (Actual) YoY FY2010 (Actual) YoY Revenues 393.8 95％ 404.5 103％ Elevator and escalator 280.3 97％ 291.6 104％ business Building FM business, 113.5 91％ 112.9 99％ etc. Operating income 26.4 90％ 30.0 114％ Overall
Slide 21: 4-3 FY2011 Financial Forecasts
4-3 FY2011 Financial Forecasts FY2011 Financial Forecasts (Billion yen) FY2010 (Actual) YoY FY2011 (Forecasts) YoY Revenues 404.5 103％ 407.0 101％ Elevator and escalator 291.6 104％ 300.0 103％ business Building FM business, 112.9 99％ 107.0 95％ etc. Operating income 30.0 114％ 31.0 103％ Revenues are exp
Slide 22: 4-4 FY2012 Targets
4-4 FY2012 Targets FY2012 Targets Revenues: ¥420 billion Overseas revenue ratio: 36% Operating income ratio: 8% Aim to expand business further, centered on overseas business, to achieve FY2012 targets. © Hitachi, Ltd. 2011. All rights reserved. 22
Slide 23: Cautionary Statement
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
Slide 24: HITACHI Inspire the Next
HITACHI Inspire the Next