Hitachi, Ltd. · TSE:6501

Hitachi — Hitachi Ltd Ord — FY2023 Earnings Presentation

25 slides from Hitachi's earnings presentation, Apr 26, 2024

  1. Slide 1: Outline of Consolidated Financial Results for the Year Ended March 31, 2024

    Outline of Consolidated Financial Results for the Year Ended March 31, 2024 [Fiscal 2023] April 26, 2024 Tomomi Kato Senior Vice President and Executive Officer, CFO Hitachi, Ltd. © Hitachi, Ltd. 2024. All rights reserved.

  2. Slide 2: Contents

    Contents 1. Key Messages 2. FY2023 Results 3. FY2024 Forecasts 4. Performance by Business Segment 5. Appendix © Hitachi, Ltd. 2024. All rights reserved. 1

  3. Slide 3: 1. Key Messages

    1. Key Messages © Hitachi, Ltd. 2024. All rights reserved. 2

  4. Slide 4: Key Messages

    Key Messages Due to robust orders by DX/GX tailwind, Lumada business expansion, and enhancement of cash generating capability, FY2023 three sectors achieved higher revenues and profits Results Due to enhancement of cash flow management, record-high core FCF was achieved. ROIC was also improved +12%

  5. Slide 5: 2. FY2023 Results

    2. FY2023 Results © Hitachi, Ltd. 2024. All rights reserved. 4

  6. Slide 6: Highlights of Results (FY2023)

    Highlights of Results (FY2023) • Three sectors grew revenues (YoY +12%) and improved Adj. EBITA (YoY +142.6 bn yen, +20%) and profitability • Core FCF increased in YoY due to enhancement of cash flow management, an increase in advances received in Hitachi Energy, and other gains Billions of yen Cons

  7. Slide 7: Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (FY2023)

    Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (FY2023 Consolidated Total) Revenues Billions of yen ⊕ Hitachi Energy ⊕ Front Business (Digital Systems & Services) ⊕ IT Services (Digital Systems & Services) Adj. EBITA Billions of yen ⊕ Changes in business scale ⊕ Selling price ch

  8. Slide 8: 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, 2023 March 31, 2024 March 31, 2023 Total assets 12,501.4 12,221.2 (280.1) Cash and cash equivalents 833.2 705.3 (127.9) Trade receivables and contract assets 2,874.9 2,9

  9. Slide 9: Revenues by Market (FY2023)

    Revenues by Market (FY2023) ASEAN, North Overseas Japan Europe China India, other Other areas America Revenues Billions of yen areas Digital Systems & 1,731.2 344.4 235.4 34.7 193.1 59.6 867.4 Services YoY +11% +7% +6% (21)% ±0% +12% +4% Green Energy & 426.0 665.0 1,009.2 204.2 262.2 485.3 2,626.2 M

  10. Slide 10: 3. FY2024 Forecasts

    3. FY2024 Forecasts © Hitachi, Ltd. 2024. All rights reserved. 9

  11. Slide 11: Highlights of Forecasts (FY2024)

    Highlights of Forecasts (FY2024) • Almost all KPIs of the Mid-term Management Plan 2024 are expected to be achieved. Core FCF to be achieved by 1.5 trillion yen (Cumulative 3 years, +0.3 trillion yen from the plan) • Acquisition of Thales GTS is planned to be closed in Q1 FY24 Three sectors Consolid

  12. Slide 12: Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (FY2024)

    Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (FY2024 Consolidated Total) Revenues Billions of yen ⊕ Hitachi Energy ⊕ Services & Platforms (Digital Systems & Services) ⊕ Hitachi High-Tech Adj. EBITA Billions of yen ⊕ Changes in business scale ⊕ Selling price change ⊖ Soaring pr

  13. Slide 13: 4. Performance by Business Segment

    4. Performance by Business Segment © Hitachi, Ltd. 2024. All rights reserved. 12

  14. Slide 14: Performance by Business Segment (DSS)

    Performance by Business Segment (DSS) FY2023 YoY FY2024 Forecasts YoY Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Digital Systems & Services 2,598.6 333.4 +9% +39.7 2,700.0 365.0 +4% +31.5 (*) 12.8% [+6%] +0.5 pts 13.5% [+5%] +0.7 pts Front Busines

  15. Slide 15: Performance by Business Segment (GEM)

    Performance by Business Segment (GEM) FY2023 YoY FY2024 Forecasts YoY Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Green Energy & Mobility 3,052.3 199.1 +24% +35.6 3,430.0 295.0 +12% +95.8 6.5% [+16%](*) (0.1) pts 8.6% [+16%] +2.1 pts Nuclear Energy

  16. Slide 16: Performance by Business Segment (CI)

    Performance by Business Segment (CI) FY2023 YoY FY2024 Forecasts YoY Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Connective Industries 3,057.9 320.6 +3% +8.4 3,150.0 361.0 +3% +40.3 (*) 10.5% [+1%] ±0.0 pts 11.5% [+5%] +1.0 pts Building Systems 921

  17. Slide 17: Lumada Business

    Lumada Business Lumada business revenues(*) Lumada business ratio Lumada Non Lumada Lumada ratio Billions of yen c.16% Revenues 29% Adj. EBITA 41% c.15% 2,650.0 27% (YoY +14%) 39% c.14% 2,334.0 26% 1,035.0 8,564.3 9,000.0 38% (YoY +19%) 310.0 284.0 7,638.2 867.4 1,960.0 630.0 724.8 215.0 553.0 466.0

  18. Slide 18: 5. Appendix

    5. Appendix © Hitachi, Ltd. 2024. All rights reserved. 17

  19. Slide 19: Highlights of Results (Q4 FY23)

    Highlights of Results (Q4 FY23) Billions of yen Consolidated Total Three sectors Revenues 2,510.5 2,510.5 YoY (9)% [+7%](*) +13% Adj. EBITA 285.9 285.9 YoY +25.5 +59.1 Adj. EBITA margin 11.4% 11.4% YoY +2.0 pts +1.2 pts Net income attributable 144.8 144.8 to Hitachi, Ltd. stockholders YoY (212.0) (2

  20. Slide 20: Performance by Business Segment (Consolidated Total)

    Performance by Business Segment (Consolidated Total) Q4 FY23 YoY FY2023 YoY FY2024 Forecasts YoY Adj. Adj. Adj. Adj. Adj. Adj. Revenues Revenues Revenues Revenues Revenues Revenues Billions of yen EBITA EBITA EBITA EBITA EBITA EBITA Digital 775.4 111.3 +9% +5.9 2,598.6 333.4 +9% +39.7 2,700.0 365.0

  21. Slide 21: Summary of Consolidated Statement of Profit or Loss

    Summary of Consolidated Statement of Profit or Loss Q4 FY22 Q4 FY23 YoY FY2022 FY2023 YoY FY2024 YoY Billions of yen Revenues 2,772.3 2,510.5 (9)% 10,881.1 9,728.7 (11)% 9,000.0 (7)% Adj. Operating Income 220.6 230.1 +9.4 748.1 755.8 +7.6 855.0 +99.1 Equity in earnings of affiliates +18.8 +32.6 +13.

  22. Slide 22: Orders Results by Business Segment

    Orders Results by Business Segment Billions of yen Q4 FY23 YoY FY2023 YoY Q4 FY23 YoY FY2023 YoY Digital Systems & Connective Services 701.0 +10% 2,765.2 +9% Industries 765.6 +6% 3,049.7 ±0% Front Business Building 302.2 +12% 1,256.7 +11% Systems 213.9 +6% 911.1 (4)% IT Services Smart Life & 283.8 +

  23. Slide 23: Notes

    Notes Item Contents Three sectors Consolidated Total less the consolidated figures of Hitachi Astemo prior to be accounted by an equity-method affiliate, includes "Others" and "Corporate items & Eliminations" Three sectors Consolidated Total less equity in earnings of Hitachi Astemo as an affiliated

  24. Slide 24: 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

  25. Slide 25: Hitachi Social Innovation is POWERING GOOD

    i Hitachi Social Innovation is 2 POWERING GOOD « . e . . ee @eer*,

Hitachi Ltd Ord — FY2023 Earnings Presentation on 6ix