Hitachi, Ltd. · TSE:6501

Hitachi — Hitachi Ltd Ord — Q1 2024 Earnings Presentation

25 slides from Hitachi's earnings presentation, Jul 31, 2024

  1. Slide 1: Outline of Consolidated Financial Results for the First Quarter Ended June 30, 2024

    Outline of Consolidated Financial Results for the First Quarter Ended June 30, 2024 [Fiscal 2024] July 31, 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. Q1 FY2024 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 Three Sectors achieved robust revenues and profits by capturing DX/GX tailwind Q1 FY24 Results Core FCF improved due to enhancement of cash flow management Progress steadily towards FY24 forecasts +21% [+14%] +55% [+49%] 11.0% Three Revenues Adj. EBITA Adj. EBITA Sectors Margin (excl. H

  5. Slide 5: Major topics

    Major topics Capture Business opportunities (DX・GX) for Growth 1 • Order intake in Q1 FY24 DSS ： 875.0 bn yen YoY +20% GEM ： 1,406.1 bn yen YoY +10% • DSS：Order growths of large projects in energy and public fields in Japan, and growth of overseas storages due to data infrastructure demand for gener

  6. Slide 6: 2. Q1 FY2024 Results

    2. Q1 FY2024 Results © Hitachi, Ltd. 2024. All rights reserved. 5

  7. Slide 7: Highlights of Results (Q1 FY24)

    Highlights of Results (Q1 FY24) • Three Sectors (excl. Hitachi Astemo) achieved growth of revenues (YoY +21%) and Adj. EBITA (+86.1 bn yen, YoY +55%), and improved profitability. Front Business, IT Services, Services & Platforms and Hitachi Energy were driver due to DX/GX tailwind • Core FCF increas

  8. Slide 8: Factors Affecting Year over Year Changes in Revenues and Adj. EBITA

    Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (Q1 FY24 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 pri

  9. Slide 9: 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, 2024 Jun 30, 2024 March 31, 2024 Total assets 12,221.2 13,404.5 +1,183.3 Cash and cash equivalents 705.3 845.2 +139.8 Trade receivables and contract assets 2,991.3 3,157

  10. Slide 10: Regional revenues (Q1 FY24)

    Regional revenues (Q1 FY24) ASEAN, North Overseas Japan Europe China India, other Other areas America revenues Billions of yen areas Digital Systems & 409.5 93.5 60.4 8.1 46.5 15.7 224.5 Services YoY +18% +19% +14% +6% +4% +14% +14% Green Energy & 81.6 220.4 321.3 58.7 63.8 138.2 802.5 Mobility YoY

  11. Slide 11: Orders Results by Business Segment (Q1 FY24)

    Orders Results by Business Segment (Q1 FY24) Billions of yen Q1 FY24 YoY Q1 FY24 YoY Digital Systems & Services Connective Industries 875.0 +20% 741.9 (4)% Front Business Building Systems 463.5 +24% 216.3 (9)% IT Services Smart Life & Ecofriendly 302.1 +19% Systems 83.0 (6)% (Hitachi GLS) Services &

  12. Slide 12: 3. FY2024 Forecasts

    3. FY2024 Forecasts © Hitachi, Ltd. 2024. All rights reserved. 11

  13. Slide 13: Highlights of Forecasts (FY2024)

    Highlights of Forecasts (FY2024) • Almost all KPIs of the Mid-term Management Plan 2024 are expected to be achieved • Hold the previous forecasts of Consolidated Total and Three Sectors (excl. Hitachi Astemo) presently Three Sectors Consolidated Total Billions of yen (excl. Hitachi Astemo) Revenues

  14. Slide 14: 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 ⊕ Front Business (Digital Systems & Services) ⊕ Hitachi High-Tech Adj. EBITA Billions of yen ⊕ Changes in business scale ⊕ Selling price change ⊖ Soaring procurem

  15. Slide 15: 4. Performance by Business Segment

    4. Performance by Business Segment © Hitachi, Ltd. 2024. All rights reserved. 14

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

    Performance by Business Segment (DSS) Q1 FY24 YoY FY2024 Forecasts YoY Prev. Forecasts Comp. Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Digital Systems 634.0 78.3 +16% +25.9 2,800.0 378.0 +8% +44.5 +4% +13.0 & Services 12.4% [+

  17. Slide 17: Performance by Business Segment (GEM)

    Performance by Business Segment (GEM) Q1 FY24 YoY FY2024 Forecasts YoY Prev. Forecasts Comp. Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Green Energy 884.2 85.9 +41% +42.7 3,500.0 302.0 +15% +102.8 +2% +7.0 & Mobility 9.7% [+28%

  18. Slide 18: Performance by Business Segment (CI)

    Performance by Business Segment (CI) Q1 FY24 YoY FY2024 Forecasts YoY Prev. Forecasts Comp. Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Connective Industries 714.0 79.3 +3% +11.4 3,150.0 361.0 +3% +40.3 ±0% ±0.0 11.1% [(2)%](*)

  19. Slide 19: Lumada Business

    Lumada Business Lumada business revenues(*) Lumada business ratio Billions of yen c.16% Revenues 29% Adj. EBITA 41% (*) Excluding Hitachi Astemo c.15% 2,650.0 27% 598.0 39% 1,035.0 (YoY +14%) 26% (YoY +17%) 2,334.0 310.0 38% 9,000.0 867.4 513.0 81.0 284.0 8,564.3 630.0 7,638.2 724.8 64.0 553.0 150.0

  20. Slide 20: 5. Appendix

    5. Appendix © Hitachi, Ltd. 2024. All rights reserved. 19

  21. Slide 21: Performance by Business Segment (Consolidated Total)

    Performance by Business Segment (Consolidated Total) Q1 FY24 YoY FY2024 Forecast YoY Prev. Forecasts Comp. Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Billions of yen Digital Systems 634.0 78.3 +16% +25.9 2,800.0 378.0 +8% +44.5 +4% +13.0 & Ser

  22. Slide 22: Summary of Consolidated Statement of Profit or Loss

    Summary of Consolidated Statement of Profit or Loss Prev. Forecasts Q1 FY23 Q1 FY24 YoY FY2023 FY2024 YoY Billions of yen Comp. Revenues 2,322.4 2,211.4 (5)% 9,728.7 9,000.0 (7)% ±0% Adj. Operating Income 130.5 197.6 +67.0 755.8 855.0 +99.1 ±0.0 Equity in earnings of affiliates +19.8 +18.2 (1.6) +75

  23. Slide 23: Notes

    Notes Item Contents Three sectors Consolidated Total less equity in earnings of Hitachi Astemo as an affiliated company and consolidated figures of Hitachi (excl. Hitachi Astemo) Astemo prior to be accounted for using the equity method, includes "Others" and "Corporate items & Eliminations" DSS / GE

  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 — Q1 2024 Earnings Presentation on 6ix