Hitachi, Ltd. · TSE:6501

Hitachi — Hitachi Ltd Ord — Q1 2026 Earnings Presentation

38 slides from Hitachi's earnings presentation, Jul 29, 2026

  1. Slide 1: Outline of Consolidated Financial Results for the First Quarter Ended June 30, 2026

    Outline of Consolidated Financial Results for the First Quarter Ended June 30, 2026 [Fiscal 2026] Hitachi, Ltd. Senior Vice President and Executive Officer, CFO Tomomi Kato July 29th, 2026 ©Hitachi, Ltd. 2026. All rights reserved

  2. Slide 2: Contents

    Contents 1. Highlights 2. Topics 3. Q1 FY2026 Results 4. FY2026 Forecast 5. Performance by Business Segment 6. Lumada Business Appendices 2 ©Hitachi, Ltd. 2026. All rights reserved

  3. Slide 3: Performance Highlights

    Performance Highlights ✓ Primarily supported by foreign exchange effects, revenue increased significantly by +20% year over year. Revenue and Adj. EBITA both reached Q1 record highs Q1 FY2026 ✓ All four sectors, particularly Energy, delivered higher revenue and profits Actual ✓ The impact from the M

  4. Slide 4: Breakdown of YoY Changes in Revenues and Adj. EBITA in Q1 FY2026

    Breakdown of YoY Changes in Revenues and Adj. EBITA in Q1 FY2026 Billion of yen YoY +20% +182.0 2,709.5 YoY +10% +234.7 2,493.0 +50.5 (16.0) Revenues 2,258.3 (*) Q1 FY25 Volume, etc Subtotal Middle East One-Off Factors FX Impact Q1 FY26 Impact YoY +140 bps YoY +110 bps [11.9%] [11.6%] +23.5 323.5 [1

  5. Slide 5: Breakdown of YoY Changes in Revenues and Adj. EBITA in FY2026

    Breakdown of YoY Changes in Revenues and Adj. EBITA in FY2026 Billion of yen YoY +9% YoY +11% +906.8 11,493.5 +374.0 11,700.0 +25.5 10,586.7 (167.0) (26.0) USD FY25 FY26 Revenues Q1 145 yen 159 yen Q2-Q4 153 yen 160 yen EURO FY25 FY26 Q1 164 yen 185 yen Q2-Q4 178 yen 185 yen FY25 Volume, etc Subtota

  6. Slide 6: Segment Highlights in FY2026 Q1 Actual and Full-Year Forecast

    Segment Highlights in FY2026 Q1 Actual and Full-Year Forecast 0 FY2026 (Billions of Q1(Actual) Q2-Q4(Forecast) Full-Year(Forecast) Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Q1 Highlights and Upward Revision to Full-Year Guidance yen) Orders (YoY) Margin(YoY) (YoY) Margin(YoY) (YoY) Ma

  7. Slide 7: Segment Highlights FY2026 Q1 Actual and Full-Year Forecast (Normalized Basis)

    Segment Highlights FY2026 Q1 Actual and Full-Year Forecast (Normalized Basis(*)) ➢ For details, refer to Appendices ✓ Q1 momentum continues, with full-year revenue projected to increase by +9% YoY and Adj. EBITA margin projected to expand by +100 bps YoY on a normalized basis FY2026 (YoY) Q1 Actual(

  8. Slide 8: Contents

    Contents 1. Highlights 2. Topics 3. Q1 FY2026 Results 4. FY2026 Forecast 5. Performance by Business Segment 6. Lumada Business Appendices 8 ©Hitachi, Ltd. 2026. All rights reserved

  9. Slide 9: DSS: Domestic IT Services

    DSS：Domestic IT Services ✓ Growth driven by AX(*1)/modernization, accelerating transformation into highly profitable businesses through the application of AI Revenue・Adj. EBITA margin Domestic IT Services Q1 results Capturing robust demand, driving growth in the Finance Domestic IT Services: Combine

  10. Slide 10: DSS: Overseas IT Services Business

    DSS: Overseas IT Services Business (GlobalLogic + Hitachi Digital Services) ✓ Global expansion of "One Hitachi" synergies. Accelerating business transformation through greater integration benefits GlobalLogic(GL)+Hitachi Digital Services(HDS) Expanding Growth Opportunities through One Hitachi Synerg

  11. Slide 11: Impact of the Middle East Situation

    Impact of the Middle East Situation ✓ Q1 impact was limited versus initial assumptions (Revenue: (16.0) bn yen, Adjusted EBITA: (7.0) bn yen) ✓ Risk impacts on Q2-Q4 have been reflected in the forecast amid increasing uncertainty; the situation continues to be monitored Priorities Risk Impacts • Sup

  12. Slide 12: Contents

    Contents 1. Highlights 2. Topics 3. Q1 FY2026 Results 4. FY2026 Forecast 5. Performance by Business Segment 6. Lumada Business Appendices 12 ©Hitachi, Ltd. 2026. All rights reserved

  13. Slide 13: Q1 FY2026 Highlights

    Q1 FY2026 Highlights ✓ Revenue and profits increased across all four sectors (Revenue +20% YoY) ✓ Core FCF totaled 365.0 bn yen (+13.6 bn yen YoY). CAPEX totaled 131.1 bn yen (+40.4 bn yen YoY), reflecting steady execution of organic growth investments ✓ For inorganic growth, the acquisition of Clev

  14. Slide 14: Breakdown of YoY Changes in Net Income and Core FCF in Q1 FY2026

    Breakdown of YoY Changes in Net Income and Core FCF in Q1 FY2026 Billions of yen +83.2 192.2 (45.1) 189.4 Net Income (21.9) (19.0) (Attributable to Hitachi, Ltd. Shareholders) ⊖Absence of special dividend related to the Air Conditioning JV reorganization in the previous fiscal year Q1 FY25 Adj. Oper

  15. Slide 15: 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, 2026 June 30, 2026 March 31, 2026 Total assets 15,041.2 15,041.4 +0.1 Cash and cash equivalents 1,323.4 1,504.4 +181.0 Trade receivables and contract assets 4,004.8 3,61

  16. Slide 16: Regional Revenues in Q1 FY2026

    Regional Revenues in Q1 FY2026 Expanded overseas, led by Europe ✓ Energy : Expanded across all regions primarily (+) Solid execution of strong order backlog from both systems and products in Europe and North America businesses ✓ Mobility : Expanded in Europe (+) Expansion of Rail Control business ✓

  17. Slide 17: Order Results by Business Segment in Q1 FY2026

    Order Results by Business Segment in Q1 FY2026 Key Drivers of Order Intake in Q1 FY2026 ✓ DSS (+) Solid AX/modernization projects ✓ Mobility (+) Increase in large-scale Rail Control projects (+) Higher sales of new high-end block storage products ✓ Energy (+) Driven by several large HVDC project awa

  18. Slide 18: Contents

    Contents 1. Highlights 2. Topics 3. Q1 FY2026 Results 4. FY2026 Forecast 5. Performance by Business Segment 6. Lumada Business Appendices 18 ©Hitachi, Ltd. 2026. All rights reserved

  19. Slide 19: FY2026 Highlights

    FY2026 Highlights ✓ CAPEX is being expanded, primarily in Energy's Power Grids business. Full-year CAPEX is expected to reach 670.0 bn yen (YoY +172.1 bn yen) ✓ Share buybacks totaled 147.9 bn yen in Q1. Approximately 400.0 bn yen remains available under the planned repurchase program for FY2026 For

  20. Slide 20: Breakdown of YoY Changes in Net Income and Core FCF in FY2026

    Breakdown of YoY Changes in Net Income and Core FCF in FY2026 Billions of yen +208.7 +21.7 900.0 802.3 (132.7) Net Income ⊖High base effect from previous year of (Attributable to Net gain on business reorganization and others Hitachi, Ltd. ⊖Decrease in Equity earnings of affiliates Shareholders) ⊕Hi

  21. Slide 21: Contents

    Contents 1. Highlights 2. Topics 3. Q1 FY2026 Results 4. FY2026 Forecast 5. Performance by Business Segment 6. Lumada Business Appendices 21 ©Hitachi, Ltd. 2026. All rights reserved

  22. Slide 22: DSS: Performance by Business Segment

    DSS: Performance by Business Segment Q1 FY2026 YoY FY2026 YoY vs Previous Forecast Billions of yen Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA DSS 719.0 85.5 +11% +14.1 3,220.0 508.0 +5%(*2) +30.8 +1% +8.0 11.9% [+7%](*1) +80 bps 15.8% [+3%] +30 bps

  23. Slide 23: Energy: Performance by Business Segment

    Energy: Performance by Business Segment Q1 FY2026 YoY FY2026 YoY vs Previous Forecast Billions of yen Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Energy 911.9 129.0 +37% +50.5 4,060.0 576.0 +26% +159.9 +10% +76.0 (*) 14.2% [+24%] +240 bps 14.2% [+21

  24. Slide 24: Mobility: Performance by Business Segment

    Mobility: Performance by Business Segment Q1 FY2026 YoY FY2026 YoY vs Previous Forecast Billions of yen Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Mobility 344.4 30.4 +21% +8.7 1,450.0 136.0 +10% +27.8 +7% +9.0 (*) 8.8% [+8%] +120 bps 9.4% [+5%] +1

  25. Slide 25: CI: Performance by Business Segment

    CI: Performance by Business Segment Q1 FY2026 YoY FY2026 YoY vs Previous Forecast Billions of yen Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA CI 761.0 83.4 +13% +20.1 3,250.0 385.0 +5%(*2) +44.6 +3% +14.0 11.0% [+8%](*1) +160 bps 11.8% [+3%] +80 bps

  26. Slide 26: Contents

    Contents 1. Highlights 2. Topics 3. Q1 FY2026 Results 4. FY2026 Forecast 5. Performance by Business Segment 6. Lumada Business Appendices 26 ©Hitachi, Ltd. 2026. All rights reserved

  27. Slide 27: Lumada Business Expansion: Accelerating HMAX Scale-up

    Lumada Business Expansion: Accelerating HMAX Scale-up ✓ Q1 Lumada revenue increased by +31% YoY across all sectors; HMAX revenue progress is at 22% ✓ Full-year revenue forecasts for Lumada and HMAX were revised upward, leading the increase in the Hitachi Group's full-year guidance Q1 FY2026 FY2026 L

  28. Slide 28: Contents

    Contents 1. Highlights 2. Topics 3. Q1 FY2026 Results 4. FY2026 Forecast 5. Performance by Business Segment 6. Lumada Business Appendices 28 ©Hitachi, Ltd. 2026. All rights reserved

  29. Slide 29: Consolidated Total: Performance by Business Segment

    Consolidated Total: Performance by Business Segment Q1 FY2026 YoY FY2026 YoY vs Previous Forecast Billions of yen Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA Revenue Adj. EBITA DSS 719.0 85.5 +11% +14.1 3,220.0 508.0 +5% +30.8 +1% +8.0 11.9% [+7%](*) +80 bps 15.8% [+3

  30. Slide 30: Summary of Consolidated Statement of Profit & Loss

    Summary of Consolidated Statement of Profit & Loss vs Previous Q1 FY2025 Q1 FY2026 YoY FY2025 FY2026 YoY Billions of yen Forecast Revenue 2,258.3 2,709.5 +20% 10,586.7 11,700.0 +11% +5% Adj. Operating Income 211.0 294.2 +83.2 1,199.2 1,408.0 +208.7 +93.0 Acquisition-related amortization +26.5 +29.2

  31. Slide 31: FY2026 Full-Year Outlook: YoY Variance Analysis

    FY2026 Full-Year Outlook: YoY Variance Analysis FY2026 Forecast Q1 Q2-Q4 Full-Year Billions of yen Actual YoY Forecast YoY Forecast YoY Special Normalized Special Normalized Special Normalized Items Basis(*) Items Basis Items Basis Revenue Consolidated Total(*) 2,709.5 +451.2 +216.5 +234.7 8,990.4 +

  32. Slide 32: Progress of Alliances and Partnerships

    Progress of Alliances and Partnerships ※Major alliances and partnerships announced since FY2025 earnings announcement (Company names in alphabetical order from top left) LINK Anthropic LINK Bosch Home Comfort Group LINK Google Cloud LINK Hitachi and Google Cloud expand strategic alliance to accelera

  33. Slide 33: Our Ambition / Lumada and HMAX

    Our Ambition / Lumada and HMAX Our Ambition： Aspirations of Inspire 2027 “Contribute to a harmonized society by True One Hitachi and grow To be a global leader sustainably” ✓ “Lumada,” which leverages Hitachi's unique strength in combining in continuously transforming social IT, OT, and products, he

  34. Slide 34: Lumada Business Growth Model

    Lumada Business Growth Model ✓ Hitachi’s strength in physical-digital integration forged in the mission-critical social infrastructure business ✓ Lumada growth model evolved through co-creation with customers and partners ✓ Driving Lumada business growth by scaling “HMAX” recurring Digital Services

  35. Slide 35: HMAX by Hitachi: Next-generation Solution Suite Innovating Social Infrastructure Enabled by AI

    HMAX by Hitachi: Next-generation Solution Suite Innovating Social Infrastructure Enabled by AI ✓ HMAX is a recurring service included in Lumada Digital Services ✓ We provide high-value-added services by combining AI and frontline / on-site data with our 110 years of domain expertise in developing an

  36. Slide 36: Notes

    Notes Items Contents 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-value evaluation of an acquired company’s assets and liabil

  37. Slide 37: 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

  38. Slide 38: HITACHI

    HITACHI

Hitachi Ltd Ord — Q1 2026 Earnings Presentation on 6ix