Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (November 2024)
19 slides from Hitachi's investor day presentation, Nov 18, 2024
Slide 1: Hitachi Rail Investor Days: Rail Control LoB Presentation
Hitachi Rail Investor Days Rail Control LoB Presentation Christian Andi Head of Rail Control 18 November 2024 © Hitachi, Ltd. 2024. All rights reserved.
Slide 2: 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 3: Rail Control market fundamentals
Rail Control market fundamentals Market Segments Key market solutions Mainline Signalling Systems Rail networks to connect major cities Equipment and devices managing safe train movement ensuring safety, and regions, designed for long- efficiency and smart power management. Includes Interlocking, Ra
Slide 4: Rail Control ecosystem overview
Rail Control ecosystem overview Supervision CTC3/SCADA - Traffic - Manpower - Stations - Maintenance Wayside ATP1 Radio link and Interlocking Onboard ATP Passenger information solutions Ticketing services Onboard ATO4 Axle counter Video Intelligent surveillance TMS2 Signals Field devices Track circu
Slide 5: We are playing in a growing mkt, expected to hit 3+ T¥ in '27
We are playing in a growing mkt, expected to hit 3+ T¥ in '27 Rail Control reference market evolution ('23-'27, T¥) by Solution by Market Segment CAGR CAGR '23-'27 '23-'27 3.0% 3.0% 3.1 3.1 Operations Management 2.8 ~12% (incl. Passenger Services)1 1.8% 2.8 ~13% 1.1 Urban 2.0% ~20% Communications &
Slide 6: EU & APAC largest regions, NAM & ME fastest growing
EU & APAC largest regions, NAM & ME fastest growing Focus on reference market Total market '23-'27 ≈3.0% North America Europe Middle East APAC1 Japan (12%) (48%) (6%) (29%) (5%) MARKET SIZE AND 3.9% GROWTH 1.5 -1.8% (T¥, 1.3 CAGR %) 1.0 0.9 7.8% 18.7% 2.8% 0.4 0.3 0.1 0.2 0.1 0.2 23 27 23 27 23 27 2
Slide 7: We have a unique positioning to compete in the RC mkt
We have a unique positioning to compete in the RC mkt • Flexible solutions from individual component to comprehensive turnkey projects, meeting a range of client requirements Broad Portfolio & Flexible A • Extensive portfolio spanning from traditional work packages to full Business Model portfolio o
Slide 8: A Broad & flexible business model covering wide mkt needs
A Broad & flexible business model covering wide mkt needs Non-Rail Control work Rail Control work packages packages Additional Services Electro- Signaling Ops Comms & mechanical Vehicles Service & Systems Mgmt. system Operations Data provider Maint. Integration IXL, ATP, OCC, PIS, CCTV, video Catena
Slide 9: We drive key national mainline upgrades worldwide
B We drive key national mainline upgrades worldwide Mainline Signaling Hitachi Rail drives national rail upgrades1 globally with advanced signalling solutions, supporting over 70 clients across 50+ countries Italy Programs Various RFI2 programs to boost connectivity and technology Key railway upgrad
Slide 10: We play in major urban networks around the globe
B We play in major urban networks around the globe Urban Signaling Hitachi powers urban mobility with cutting-edge driverless technology and comprehensive solutions in major cities worldwide Copenhagen Vancouver 1st driverless London Multi awarded best Driverless Metro in the world Presence in major
Slide 11: GTS acquisition strongly contributing to competitiveness
B GTS acquisition strongly contributing to competitiveness Not exhaustive Positioning: Strong Fair Geographical presence Product positioning (Total headcounts) (qualitative view on portfolio coverage and installed base) Rail Control GTS Rail Control GTS Key strategic actions ETCS Scaling-up market p
Slide 12: We have a clear vision to address future clients' needs
C We have a clear vision to address future clients' needs Unprecedented challenges faced by clients'… …are opportunities to innovate & adapt Signaling Operations Management Communications Systems (incl. Passenger Services) & Data • Transition to cloud-based • Leverage data analytics • Cybersecurity
Slide 13: GTS integration on-track, minor risks closely monitored
GTS integration on-track, minor risks closely monitored Area Risk Mitigation actions Residual risk Set and monitor synergy Integration Delays in business synergy targets through bottom-up realisation generating impact synergies initiatives, panels, and mid- vs. financial projections term planning IT
Slide 14: Integration is live: core processes already integrated
Integration is live: core processes already integrated Selected examples Sales & mktg Products Procurement Joint bidding and Unified approach to Joint sourcing for go-to-market product innovation common categories Activated convergence on 7 Already secured ≈70% of 3 joint bids already solutions to i
Slide 15: Our most recent achievements
Our most recent achievements Only selected examples COMMERCIAL DELIVERY INNOVATION Alexandria Abu-Quir Milan L4 opening Green CBTC in Conversion of current New driverless line – in Singapore diesel-fueled rail line into a peak hours, operates with a Green CBTC in NSEW line - to high-capacity electri
Slide 16: Solid topline growth from organic expansion & GTS
Solid topline growth from organic expansion & GTS Overall figures including GTS from June '24 FX rates as per relevant FY reporting Order intake (B¥) Revenues (B¥) Backlog (B¥) Charts not in scale 706 653 2,429 623 829 GTS 278 GTS 276 1,732 GTS 1,572 366 350 288 428 377 1,601 2022A 2023A 2024F 2022A
Slide 17: Key priorities for future value creation
Key priorities for future value creation Maximise Market Drive Service-Centric Accelerate Digital Reach Revenue Growth Innovation in Rail Control Capitalise on new capabilities and Move beyond hardware solutions to Lead with digital solutions across expanded footprint to seize growth deliver a suite
Slide 18: Rail Control: summary and key takeaways
Rail Control: summary and key takeaways High Growth Potential in a Transforming Rail Control Market Rail Control Rail control market to reach 3.1B¥ by 2027; strong growth driven by sustainability initiatives (EU) and market infrastructure expansion (NAM, APAC, MEA) Broad Portfolio & Flexible Busines
Slide 19: HITACHI Inspire the Next
HITACHI Inspire the Next