Kanadevia Corporation · TSE:7004

Kanadevia — Hitachi Zosen — FY2015 Earnings Presentation

30 slides from Kanadevia's earnings presentation, July 2016

  1. Slide 1: FY2015 Financial Results and Progress of Hitz Vision II

    Hitachi Zosen Corporation FY2015 Financial Results and Ras Abu Fontas A2 Desalination Plant Progress of Hitz VisionⅡ Qatar July 2016 Hitachi Zosen Corporation Copyright 2016 © Hitachi Zosen Corporation All Rights Reserved 1

  2. Slide 2: Contents

    Contents 1. Overview of FY2015 Financial Results and Forecast of FY2016 2. Progress of Mid-term Business Plan “Hitz VisionⅡ” 3. Key Business Strategies 4. New Businesses and Products Copyright 2016 © Hitachi Zosen Corporation All Rights Reserved 2

  3. Slide 3: 1. Overview of FY2015 Financial Results and Forecast of FY2016

    1. Overview of FY2015 Financial Results and Forecast of FY2016 Copyright 2016 © Hitachi Zosen Corporation All Rights Reserved 3

  4. Slide 4: FY2015 Results and FY2016 Forecast Overview

    FY2015 Results and FY2016 Forecast Overview (Unit: Billion Yen) FY2014 FY2015 FY2016 Actual Actual Forecast Order intake 452.7 435.4 450.0 Net sales 359.3 387.0 400.0 Operating income 12.8 15.1 16.0 (ratio) 3.6% 3.9% 4.0% Non-operating P&L -5.3 -2.9 -4.0 Ordinary income 7.5 12.2 12.0 (ratio) 2.1% 3.

  5. Slide 5: Order intake

    Order intake (Unit: Billion Yen) 500.0 452.7 -17.3 +14.6 450.0 450.0 435.4 27.7 30.0 400.0 34.5 Others 350.0 100.6 110.0 107.2 Infrastructure 300.0 250.0 Machinery 200.0 315.0 -31.3 +16.3 300.0 150.0 Environmental 283.7 Systems and 100.0 Industrial Plants 50.0 0.0 FY2014 FY2015 FY2016 Actual Actual

  6. Slide 6: Net sales

    Net sales (Unit: Billion Yen) 450.0 +13.0 400.0 +27.7 387.0 400.0 359.3 30.8 30.0 Others 350.0 19.4 300.0 +5.5 110.0 104.5 104.4 Infrastructure 250.0 200.0 Machinery 150.0 +8.4 250.0 +15.6 241.6 Environmental 100.0 226.0 Systems and Industrial Plants 50.0 0.0 FY2014 FY2015 FY2016 Actual Actual Forec

  7. Slide 7: Operating income

    Operating income (Unit: Billion Yen) 18.0 +2.3 Total 15.1 +0.9 Total 16.0 16.0 Total 12.8 0.7 0.4 1.0 14.0 0.8 Others 12.0 10.0 Infrastructure 8.0 14.8 14.0 13.6 Machinery 6.0 +2.5 +1.8 4.0 Environmental 2.0 Systems and Industrial Plants 0.0 -0.8 -2.1 -2.0 -4.0 FY2014 FY2015 FY2016 Actual Actual For

  8. Slide 8: by Segments

    by Segments (Unit: Billion Yen) Environmental Systems & Machinery Infrastructure Others Total Industrial Plants Order intake 315.0 100.6 27.7 9.4 452.7 FY2014 Net sales 226.0 104.4 19.4 9.5 359.3 Actual Operating 13.6 0.8 -2.1 0.5 12.8 income Order intake 283.7 107.2 34.5 10.0 435.4 FY2015 Net sales

  9. Slide 9: 2. Progress of Mid-term Business Plan Hitz Vision II

    2. Progress of Mid-ｔerm Business Plan “Hitz VisionⅡ” Copyright 2016 © Hitachi Zosen Corporation All Rights Reserved 9

  10. Slide 10: Long-term vision and medium-term management plans

    1. Positioning of medium-term management plans and Business Domains ◆Long-term vision and medium-term management plans <FY2005-FY2010> <FY2011-FY2016> H i t z I n n o v a t i o n H i t z 2 0 1 6 V i s i o n HI Plan HI Plan - Ⅱ Hitz Vision Hitz Vision Ⅱ Build a foundation, Achieve targets sow the see

  11. Slide 11: Hitz Vision II management targets (1)

    2. Hitz Vision Ⅱ management targets (1) Order intake/Net sales (Billion Yen) Operating income (Billion Yen) 600.0 Order intake (P) Order intake (A/F) Net sales (P) 30.0 Net sales (A/F) Operating income (P) Operating income (A/F) 500.0 25.0 400.0 20.0 300.0 15.0 200.0 10.0 100.0 5.0 0.0 0.0 FY2014 FY

  12. Slide 12: Hitz Vision II management targets (2)

    2. Hitz Vision Ⅱ management targets (2) ◆ Status of Well-balanced Business Portfolio (Unit: Billion yen) FY2010 FY2014 FY2015 Domestic 237.5 83% 237.1 66% 258.1 67% Overseas 49.6 17% 122.2 34% 128.9 33% Total 287.1 100% 359.3 100% 387.0 100% New Businesses/Products － － 3.2 1% 11.5 3% Stable Business

  13. Slide 13: Hitz Vision II management targets (3)

    2. Hitz Vision Ⅱ management targets (3) ◆ Investment (Unit: Billion Yen) Hitz Vision Hitz VisionⅡ (Actual) (Plan) 3 years total 3 years total R&D expenses 20.0 30.0 Capital investment 19.0 30.0 M&A & others 13.8 40.0 Total 52.8 100.0 Copyright 2016 © Hitachi Zosen Corporation All Rights Reserved 13

  14. Slide 14: 3. Key Business Strategies

    3. Key Business Strategies Copyright 2016 © Hitachi Zosen Corporation All Rights Reserved 14

  15. Slide 15: Expansion in growth areas: EfW - 856 plants worldwide

    Expansion in growth areas : EfW ◆World-class ample reference projects Europe EfW : Energy from Waste 208 Asia North America 79 79 Hitachi Zosen Japan Inova AG 482 Hitachi Zosen Inova USA LLC HZ India Pvt. Ltd. Hyderabad Branch Hitachi Zosen Africa South America 3 India 1 1 Australia 3 856 plants wor

  16. Slide 16: HZI Market Shares – European EfW Market

    Expansion in growth areas : EfW Market update ◆HZI Market Shares – European EfW Market Market Shares Market Shares 2008 – 2015 by supplier 2013 – 2015 by supplier Total: 70’004 tpd Total: 19’839 tpd Source: Vaccani European Market Share Analysis of Copyright 2016 © Hitachi Zosen Corporation All Righ

  17. Slide 17: Hitz Market Shares – Japanese EfW Market

    Expansion in growth areas : EfW Market update ◆Hitz Market Shares – Japanese EfW Market Market Shares Market Shares 2008 – 2015 by supplier 2013 – 2015 by supplier Kobelco Kyowa Kawasaki giken JFE 4.2% 1.7% 0.9% MHIEC(martin) 2.5% 2.7% Kobelco MHIEC(martin) 3.7% 6.3% Hitz 21.1% NSENGI NSENGI 8.3% Hi

  18. Slide 18: Market Shares by Supplier 2008-2015 – Worldwide

    Expansion in growth areas : EfW Market update ◆ Market Shares by Supplier 2008-2015 – Worldwide HITZ/HZI = Market Leader Source: Vaccani Worldwide Market Share Analysis of Thermal Waste Treatment Plants, 2016 Edition Copyright 2016 © Hitachi Zosen Corporation All Rights Reserved 18

  19. Slide 19: Global forecast market volume in EfW 2016-2020

    Expansion in growth areas : EfW Market update ◆Global forecast market volume in EfW 2016-2020 Europe 15,700 Asia North America 53,000 2,050 Near and Middle East ＆ Africa 2,000 (unit: billion tonnage) 2050 25 2025 Approx. 22.3 2010 Approx. 14.9 20 Approx. 10.5 15 North America New Constructions in 1,

  20. Slide 20: Strategies to be No. 1 in global EfW market

    Expansion in growth areas : EfW Strategies ◆Strategies to be No. 1 in global EfW market Middle East [Inova] Japan [Hitz] • Work with Hitz by project • Develop next-generation US [Inova] • Hybridize with Hitz water treatment technologies • Module USA systems • Joint development with • Seek partners I

  21. Slide 21: Reference in Southeast and South Asia

    Expansion in growth areas : EfW Strategies ◆ Reference in Southeast and South Asia Thai （370t/d 6,000kW） Vietnam (under construction) （75t/d 1,960kW） India (under construction) (600t/d 11,500kW) Malaysia （600t/d 18,000kW） Copyright 2016 © Hitachi Zosen Corporation All Rights Reserved 21

  22. Slide 22: Rationalization by ICT

    Expansion in growth areas : EfW R&D ◆ Rationalization by ICT Power generation Automatic amount UP Stable combustion operation control =Revenue UP system Profitability improvement Manpower saving Cost reduction =profit UP Preventive maintenance Copyright 2016 © Hitachi Zosen Corporation All Rights Re

  23. Slide 23: Rationalization by ICT: big data

    Expansion in growth areas : EfW R&D ◆ Rationalization by ICT • In 2014, Hitz started a study of big data utilization with IBM • The amount of data from EfW plants is the industry’s top level Mass data for analysis Past intuition ・ experience ・ Monitoring the main data only courage Decision making by

  24. Slide 24: Rationalization by ICT: Remote operation system

    Expansion in growth areas : EfW R&D ◆ Rationalization by ICT →Remote operation system ・Plant operations are monitored remotely at support center Remote Monitoring Malaysia (1st order) Remote Monitoring / Operation Support Center （600t/d, 18,000kW） （Hitz Head office , Osaka, Japan） Copyright 2016 © H

  25. Slide 25: 4. New Businesses and Products

    4. New Businesses and Products Copyright 2016 © Hitachi Zosen Corporation All Rights Reserved 25

  26. Slide 26: Spin off Shipbuilding, Growth of Environmental Business, Creating New Businesses

    New Businesses and Products ◆Spin off Shipbuilding →Growth of Environmental Business →Creating New Businesses (Unit: Billion yen) ＜Trends of Hitz group sales amount＞ Environmental Systems and FY1996 635.2 Industrial Plants Machinery FY2001 439.1 Infrastructure Others FY2005 333.8 Spin off Shipbuildi

  27. Slide 27: New Businesses and Products

    New Businesses and Products Global Environment Wind Power Business Functional Materials Protecting Technology Promotion Office Business Promotion Office Development & Business Promotion Office O All-solid state lithium-ion batteries Hydrogen production system Onshore wind power generation Eucommia e

  28. Slide 28: Forecast for the introduction of wind power in Japan

    New Businesses and Products ◆ Forecast for the introduction of wind power in Japan Source: Japan Wind Power Association Copyright 2016 © Hitachi Zosen Corporation All Rights Reserved 28

  29. Slide 29: Wind Power Business

    New Businesses and Products ◆ Wind Power Business In operation Kitanozawa Cliff Wind Farm 12MW (14% equity) No.1 Omonogawa Wind Power Station 2,000kW No.2 Omonogawa Wind Power Station 2,000kW Planning Projects Iwaki Katte Wind Power Station 2,000kW Matsugasaki Wind Power Station 2,000kW Mutsu Ogawar

  30. Slide 30: Cautionary Statement

    Cautionary Statement Forward-looking statements are based on information currently available to Hitachi Zosen Corporation. Therefore those forward-looking statements include unknown risks and uncertainties. Accordingly, you should note that the actual results could differ materially from those forwa

Hitachi Zosen — FY2015 Earnings Presentation on 6ix