Hitachi, Ltd. · TSE:6501

Hitachi — Hitachi Ltd Ord — Q2 2025 Earnings Presentation

32 slides from Hitachi's earnings presentation, Oct 30, 2025

  1. Slide 1: Outline of Consolidated Financial Results for the Second Quarter Ended September 30, 2025

    Outline of Consolidated Financial Results for the Second Quarter Ended September 30, 2025 [Fiscal 2025] Hitachi, Ltd. Senior Vice President and Executive Officer, CFO Tomomi Kato October 30th, 2025 ©Hitachi, Ltd. 2025. All rights reserved

  2. Slide 2: Contents

    Contents 1. Key Messages 2. Q2 FY2025 Results 3. FY2025 Outlooks 4. Performance by Business Segment 5. Lumada Business Appendices 2 ©Hitachi, Ltd. 2025. All rights reserved

  3. Slide 3: Highlights of Hitachi Group's Performance

    Highlights of Hitachi Group’s Performance 1. Q2 FY2025 Results ✓Solid momentum continued, driven by strong Energy’s Power Grids business and solid DSS’s Japanese IT business, with higher revenue and profit ✓Adjusted EBITA reached a record high for Q2 ✓Core FCF significantly increased, driven by high

  4. Slide 4: Segment Highlights

    Segment Highlights ✓ Q2 : Solid momentum continued in DSS’s Japanese IT business and Energy’s Power Grids business ✓ Full-year : In addition to upward revisions to Adj. EBITA in Energy and other sectors, business risks and tariff impacts, etc. previously factored into Corporate items & Elimination w

  5. Slide 5: DSS: Driving the Growth Strategy

    DSS: Driving the Growth Strategy ✓DSS remained solid in Q2, with orders up +6% YoY, consistent with revenue and profit. (posted record-high revenue and profit) ✓The Japan business continued its solid sales momentum, driven mainly by DX/modernization projects ✓For the overseas business, although reve

  6. Slide 6: GlobalLogic: Contribution to Lumada Business Expansion

    GlobalLogic: Contribution to Lumada Business Expansion 1. Key Initiatives GlobalLogic enhances its AI capabilities and supports AI implementation both within and outside the Hitachi Group, thereby contributing to the expansion of the Lumada business Enhancing, Integrating, and Assetizing Creating sy

  7. Slide 7: Progress on Initiatives to Enhance Enterprise Value

    Progress on Initiatives to Enhance Enterprise Value Growth Investments for Lumada Expansion (Enhancing Digital Services / Accelerating Physical AI Implementation) 1 ✓ Pursuing M&A to strengthen HMAX / Physical AI technologies Mobility : Omnicom (Railway Infrastructure Monitoring System) DSS : synver

  8. Slide 8: Contents

    Contents 1. Key Messages 2. Q2 FY2025 Results 3. FY2025 Outlooks 4. Performance by Business Segment 5. Lumada Business Appendices 8 ©Hitachi, Ltd. 2025. All rights reserved

  9. Slide 9: Q2 FY2025 Highlights

    Q2 FY2025 Highlights ✓ Revenue and profit increased, driven by strong momentum primarily in the Japanese IT business —driven by demand for DX/modernization—and continued strength in the Power Grids business, fueled by robust demand for transmission upgrades and renewable energy connections ✓ Revenue

  10. Slide 10: Breakdown of YoY Changes in Revenue, Adj. EBITA, and Core FCF in Q2 FY2025

    Breakdown of YoY Changes in Revenue, Adj. EBITA, and Core FCF in Q2 FY2025 Billions of yen [YoY +8%] [YoY +8%] 2,334.5 +178.5 2,513.0 +16.0 2,529.0 ⊕ Power Grids (Energy) Revenue ⊕ Industrial AI (CI) ⊕ Front Business (DSS) ⊖ Urban Systems (CI) Q1 FY24 Energy・ 小計 Foreign 為替影響 Q2 FY24 エナジー・ Subtotal E

  11. Slide 11: Financial Position and Cash Flows

    Financial Position and Cash Flows Summary of Consolidated Financial Position As of As of Difference from Billions of yen March 31, 2025 September 30, 2025 March 31, 2025 Total assets 13,284.8 13,887.1 +602.3 Cash and cash equivalents 866.2 1,278.9 +412.6 Trade receivables and contract assets 3,496.3

  12. Slide 12: Regional Revenues in Q2 FY2025

    Regional Revenues in Q2 FY2025 ✓ The business in Europe and North America expanded: Energy, driven by robust demand for transmission upgrades and connections to renewable energy sources, and Mobility, driven by robust performance of signaling systems projects ✓ The business in China declined: In CI,

  13. Slide 13: Orders Results in Q2 FY2025

    Orders Results by Business Segment in Q2 FY2025 ✓ DSS ：Orders in Japan remained solid in Front Business and IT Services, supported by projects focused on DX/modernization. Overseas orders in Services and Platforms continued to be impacted by restrained investment from customers in Europe and the U.S

  14. Slide 14: Contents

    Contents 1. Key Messages 2. Q2 FY2025 Results 3. FY2025 Outlooks 4. Performance by Business Segment 5. Lumada Business Appendices 14 ©Hitachi, Ltd. 2025. All rights reserved

  15. Slide 15: FY2025 Highlights

    FY2025 Highlights ✓ In addition to strong performance in Energy driven by the Power Grids business, Mobility and CI have also been revised upward. Overall upward revision for Hitachi Group: Revenue: +200.0 bn yen, Adjusted EBITA: +100.0 bn yen, Net Income: +40.0 bn yen, Core FCF: +160.0 bn yen ✓ Eve

  16. Slide 16: Breakdown of YoY Changes in Revenue and Adj. EBITA in FY2025

    Breakdown of YoY Changes in Revenue and Adj. EBITA in FY2025 Billions of yen [YoY +7%] [YoY +5%] +644.7 10,428.0 10,300.0 9,783.3 (128.0) Revenue FY24 FY24 DSS・エナジー・ Energy・ 小計 Subtotal 為替影響 Foreign FY25 FY25 DSS・Others モビリティ・他 Foreign Exchange Exchange +200.5 1,248.0 1,210.0 (36.0) (18.0) (20.0) 1,

  17. Slide 17: Breakdown of YoY Changes in Net Income and Core FCF in FY2025

    Breakdown of YoY Changes in Net Income and Core FCF in FY2025 Billions of yen +154.9 ⊖ Reversal of gains from large asset sales in previous year ⊖ Increase in restructuring expense (34.5) +151.3 750.0 Net Income 615.7 (117.4) (20.0) (Attributable to Hitachi, Ltd. Shareholders) FY24 調整後営業利益 (*) 空調事業合

  18. Slide 18: Contents

    Contents 1. Key Messages 2. Q2 FY2025 Results 3. FY2025 Outlooks 4. Performance by Business Segment 5. Lumada Business Appendices 18 ©Hitachi, Ltd. 2025. All rights reserved

  19. Slide 19: DSS: Performance in FY2025

    DSS: Performance by Business Segment in FY2025 Q2 FY2025 YoY FY2025 YoY vs Previous Forecasts Billions of yen Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Digital Systems & 708.8 109.9 +4% +19.5 2,950.0 437.0 +4% +42.9 (2)% ±0.0 Services 15.5% [+5%]

  20. Slide 20: Energy: Performance in FY2025

    Energy: Performance by Business Segment in FY2025 Q2 FY2025 YoY FY2025 YoY vs Previous Forecasts Billions of yen Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Energy 750.8 94.2 +27% +50.0 2,970.0 368.0 +13% +115.9 +5% +22.0 (*) 12.6% [+25%] +5.1 pts 1

  21. Slide 21: Mobility: Performance in FY2025

    Mobility: Performance by Business Segment in FY2025 Q2 FY2025 YoY FY2025 YoY vs Previous Forecasts Billions of yen Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Mobility 300.2 19.0 +6% +0.9 1,260.0 103.0 +8% +8.0 +5% +5.0 (*) 6.3% [+1%] (0.1) pts 8.2%

  22. Slide 22: CI: Performance in FY2025

    CI: Performance by Business Segment in FY2025 Q2 FY2025 YoY FY2025 YoY vs Previous Forecasts Billions of yen Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Connective Industries 805.4 99.9 ±0% +15.8 3,240.0 349.0 (1)% +3.6 +0% +3.0 12.4% [±0%] (*) +2.0

  23. Slide 23: Contents

    Contents 1. Key Messages 2. Q2 FY2025 Results 3. FY2025 Outlooks 4. Performance by Business Segment 5. Lumada Business Appendices 23 ©Hitachi, Ltd. 2025. All rights reserved

  24. Slide 24: Lumada Business

    Lumada Business Q2 FY2024 Q2FY2025 FY2024 FY2025 Hitachi Total Adjusted EBITA margin 10.2% 12.8% 11.1% 11.7% Lumada business revenue ratio 31% 42% 31% 39% Lumada business Adj. EBITA margin 15% 16% 4,000.0 Lumada business revenue (YoY +32%) 3,021.0 1,830.0 1,405.0 Billions of yen 1,055.0 Digital Serv

  25. Slide 25: Initiatives to Expand the Lumada Business

    Initiatives to Expand the Lumada Business Expanding the AI Ecosystem: Strengthening Collaboration with Partners ✓ NVIDIA : Launching the 'NVIDIA AI Factory' as a development environment for Physical AI solutions to expand HMAX use cases ✓ Google Cloud : Applying Gemini Enterprise to the OT domain ba

  26. Slide 26: Contents

    Contents 1. Key Messages 2. Q2 FY2025 Results 3. FY2025 Outlooks 4. Performance by Business Segment 5. Lumada Business Appendices 26 ©Hitachi, Ltd. 2025. All rights reserved

  27. Slide 27: Consolidated Total: Performance in FY2025

    Consolidated Total: Performance by Business Segment in FY2025 vs Previous Q2 FY2025 YoY H1 FY2025 YoY FY2025 YoY Forecasts Adj. Adj. Adj. Adj. Adj. Adj. Adj. Revenue Revenue Revenue Revenue Revenue Revenue Revenue Billions of yen EBITA EBITA EBITA EBITA EBITA EBITA EBITA Digital Systems 708.8 109.9

  28. Slide 28: Summary of Consolidated Statement of Profit & Loss

    Summary of Consolidated Statement of Profit & Loss vs Previous Q2 FY24 Q2 FY25 YoY H1 FY24 H1 FY25 YoY FY24 FY25 YoY Billions of yen Forecasts Revenue 2,334.5 2,529.0 +8% 4,545.9 4,787.4 +5% 9,783.3 10,300.0 +5% +2% Adj. Operating Income 207.1 297.0 +89.9 404.7 508.0 +103.3 971.6 1,103.0 +131.3 +98.

  29. Slide 29: Topics (U.S. Reciprocal Tariff Impacts)

    Topics (U.S. Reciprocal Tariff Impacts) 1. Q2 FY2025 (Actual) ✓ Direct and indirect impact amounts (after offsetting effects of countermeasures): Adj. EBITA (3.5) billion yen, Net Income (5.5) billion yen ✓ Hitachi Energy implemented efforts to mitigate the direct impact on performance through count

  30. Slide 30: Notes

    Notes Items Contents DSS / CI Digital Systems & Services / Connective Industries Adj. EBITA Adj. operating income plus acquisition-related amortization Acquisition-related amortization Amortization and depreciation of intangible assets and other assets allocated from goodwill recognized through fair

  31. Slide 31: 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

  32. Slide 32: HITACHI

    HITACHI

Hitachi Ltd Ord — Q2 2025 Earnings Presentation on 6ix