Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2011)
29 slides from Hitachi's investor day presentation, Jun 16, 2011
Slide 1: Social Infrastructure & Industrial Systems Business Strategy
Social Infrastructure & Industrial Systems Business Strategy Industrial & Social Infrastructure Systems Company Hitachi Plant Technologies, Ltd. Hitachi Industrial Equipment Systems Co., Ltd. Hitachi IR Day 2011 June 16, 2011 Toshiaki Higashihara Vice President and Executive Officer, Hitachi, Ltd. P
Slide 2: Contents
Social Infrastructure & Industrial Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Policy and Growth Strategy 4. Business Performance Trends and Targets 5. Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 3: Business Overview (1) Revenues by Sector & Major Products
1-1 Business Overview (1) Revenues by Sector & Major Products *Industrial & Social Infrastructure Systems Company Uninterrupted Electric control systems for steel plants Power Factory facility control systems Supplies Water and sewage control Private Finance Solar power facilities for systems and el
Slide 4: Business Overview (2) Collaborative Framework
1-2 Business Overview (2) Collaborative Framework Industrial & Social Infrastructure Systems Company Overall coordination of system engineering services, and solutions sales Innovate by fusing IT and technologies supporting social infrastructure and industrial systems Hitachi Industrial Equipment Hi
Slide 5: Business Overview (3) Basic Growth Strategy Policies
1-3 Business Overview (3) Basic Growth Strategy Policies Total solutions provision Service business expansion Acceleration of global expansion Expand business scope One-stop Strengthening of cooperation with Overall coordination of components, (Lifecycle support) to maintenance local partners and th
Slide 6: Business Overview (4) Business Features
1-4 Business Overview (4) Business Features Various, high-value-added key component groups Fusion of highly reliable control systems and IT Water treatment equipment, industrial Energy control and management machinery systems [Pumps, compressors, ink-jet printers, etc.] [EnMS*2, HVAC control system
Slide 7: Business Overview (5) Global expansion (1)
1-5 Business Overview (5) Global expansion (1) Overseas Manufacturing/Servicing/Sales ● ●● ●■ ● ● ■□■ ● ● ● ● ■■● ■ ●● ●●● ● ■ □ ● ● □ ■ ● ● ■ ■ □●● ■ ● ● ● ● China Asia Americas Europe Total ■ Overseas Manufacturing/Servicing Bases ● Overseas Businesses/ others and Sales Bases Industrial & Social I
Slide 8: Business Overview (6) Global expansion (2)
1-6 Business Overview (6) Global expansion (2) Expand and upgrade overseas production bases □ Hitachi Industrial Equipment (Nanjing) Co., Ltd. (Joint venture) Reinforcement and expansion of supply capacity for China ・ Compressors: launched large models (2010) ・ Increase and expand inverter productio
Slide 9: Business Overview (7) Global expansion (3)
1-7 Business Overview (7) Global expansion (3) Expand Service business through the strengthening collaborations with customers and local business partners ■ Service bases (Middle ● East) Servicing ●● of process compressors (To be established in FY2011) ●■ ● ● ■□■ ● ● ●●● ● ■■● ■ ● □ ● ●● ● ● ■ ■ Joi
Slide 10: Contents
Social Infrastructure & Industrial Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Policy and Growth Strategy 4. Business Performance Trends and Targets 5. Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 11: Market Trends (1) Social Infrastructure Systems Business - Water Business
Market Trends (1) Social Infrastructure Systems Business 2-1 - Water Business Market Trends in Japan Maturity of equipment market, decrease of investment in construction Increase of upgrade demand as facilities become superannuated Global Market Trends High growth rate in management and operation, a
Slide 12: Market Trends (2) Industrial Systems Business
2-2 Market Trends (2) Industrial Systems Business Increasing energy demand centered on emerging economies → pressing need to improve energy efficiency China and India account for most of the rise in global energy demand This is spurring the oil and gas markets to find supply sources (increasing dema
Slide 13: Contents
Social Infrastructure & Industrial Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Policy and Growth Strategy 4. Business Performance Trends and Targets 5. Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 14: Business Policy
3-1 Business Policy Innovate by fusing IT and technologies supporting social infrastructure and industrial systems Achieve full-scale entry into global Expand service businesses in Japan Social infrastructure markets by expanding the Hitachi Fortify and expand overseas water Group's water business b
Slide 15: Growth Strategy (1) Social Infrastructure Systems Business (1)
3-2 Growth Strategy (1) Social Infrastructure Systems Business (1) Achieve full-scale entry into global markets by expanding the Hitachi Group's water business Revenue Target Business Expansion Measures Revenue: ¥210 billion Expand service businesses in Japan Overseas revenue ratio: Over 35% ■Streng
Slide 16: Growth Strategy (1) Social Infrastructure Systems Business (2)
3-3 Growth Strategy (1) Social Infrastructure Systems Business (2) Develop the water business globally as a "Japanese water major" Provide total solutions ■ Water supply and sewage field (EPC, business operation and management) [Volume zone] ■ Reuse water, sea water desalination, industrial-use wate
Slide 17: Growth Strategy (1) Social Infrastructure Systems Business (3)
3-4 Growth Strategy (1) Social Infrastructure Systems Business (3) Provide total solutions Expand service businesses in Japan Strengthen product lineup ■ Formed an alliance with DK Corporation ■New water supply pump with variable speed regarding water business services control motor ・ Enables energy
Slide 18: Growth Strategy (1) Social Infrastructure Systems Business (4)
3-5 Growth Strategy (1) Social Infrastructure Systems Business (4) Provide total solutions Undertaking two feasibility studies for water circulation systems for Japan's Ministry Power supply station for EV of Economy, Trade and Industry(May2011) ■Participate in project on export of environmentally I
Slide 19: Growth Strategy (2) Industrial Systems Business (1)
3-6 Growth Strategy (2) Industrial Systems Business (1) Expand solutions business to address global needs Revenue Target Business Expansion Measures Revenues: ¥620.0 billion Expand highly efficient, Overseas revenue ratio: Over 40% environmentally friendly components, systems and services businesses
Slide 20: Growth Strategy (2) Industrial Systems Business (2) Eco factory solutions
3-7 Growth Strategy (2) Industrial Systems Business (2) Eco factory solutions Wide-ranging solutions from consulting to products, systems and services help reduce CO 2 Management support with IT/consulting Utility area Plant & Factory Optimal energy-saving and crane CO2 reduction solutions Factory p
Slide 21: Growth Strategy (2) Industrial Systems Business (3)
3-8 Growth Strategy (2) Industrial Systems Business (3) Eco factory solutions Develop EnMS ■Control system for energy optimization based on H-NET (power monitoring system) Head Quarter (Administrator's PC) ・Monitoring and control in a range of Office･Shop Ｗｅｂ Factory Japan applications, from factori
Slide 22: Growth Strategy (2) Industrial Systems Business (4)
3-9 Growth Strategy (2) Industrial Systems Business (4) Ｏｉｌ＆Ｇａｓ Expand service business for process compressors through collaboration with partners ■Alliance with Mayekawa Manufacturing Co., Ltd. in Brazil （March, 2011） ⇒Jointly Establish a Sales and Maintenance service base for process compressors
Slide 23: Basic Growth Strategy Policies
3-10 Basic Growth Strategy Policies Leverage closely collaborations with Industrial & Social Infrastructure Systems Company, Hitachi Plant technologies and Hitachi Industrial Equipment Systems, and Realizing collective strength Total solutions provision Overall coordination of components, systems, E
Slide 24: Contents
Social Infrastructure & Industrial Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Policy and Growth Strategy 4. Business Performance Trends and Targets 5. Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 25: Business Performance Trends and Targets
4 Business Performance Trends and Targets Revenues 40% Operating (Billion yen) income ratio (%) 29% Overseas revenue ratio (%) 24% 830 21% 19% Social 660 infrastructure 577.2 593 Operating 543.3 income ratio (%) 5.0 5.2% 500 3.6% Industrial 2.8% systems 2.0% 0.8% 0 0 FY2009 FY2010 FY2011 FY2012 FY20
Slide 26: Contents
Social Infrastructure & Industrial Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Policy and Growth Strategy 4. Business Performance Trends and Targets 5. Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 27: Conclusion: FY2015 Targets
5 Conclusion FY2015 Targets Revenues: ¥830 billion Overseas revenue ratio: 40% Operating income ratio: 5% Innovate by fusing IT and technologies supporting social infrastructure and industrial systems © Hitachi, Ltd. 2011. All rights reserved. 27
Slide 28: 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 29: HITACHI Inspire the Next
HITACHI Inspire the Next