Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2012)

30 slides from Hitachi's investor day presentation, Jun 14, 2012

  1. Slide 1: Automotive Systems Business Strategy

    Automotive Systems Business Strategy Hitachi IR Day 2012 June 14, 2012 Kunihiko Ohnuma President & CEO Hitachi Automotive Systems, Ltd. © Hitachi, Ltd. 2012. All rights reserved.

  2. Slide 2: Contents

    Automotive Systems Business Strategy Contents 1. Business Overview 2. Market trends 3. Business Targets 4. Growth strategy 5. Conclusion © Hitachi, Ltd. 2012. All rights reserved.

  3. Slide 3: 1-1 Business Overview

    1-1 Business Overview Harness cutting-edge technologies in the environment, safety and information fields Strengthen the global business foundation further [Information field] [Environment field] Other (10%) Car information Powertrain & systems (CIS) electronic control (20%) systems (30%) Overseas J

  4. Slide 4: 1-2 Main Products

    1-2 Main Products Environment field <Electromechanical> <Fuel economy improvement> • Hybrid systems • Motors • Battery Modules • Battery Cells • Inverters • Lithium-ion batteries • Engine management • Variable valve • Engine components (Hitachi Vehicle Energy) systems systems <Driving support> <Comf

  5. Slide 5: Contents

    Automotive Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Targets 4. Growth Strategy 5. Conclusion © Hitachi, Ltd. 2012. All rights reserved.

  6. Slide 6: 2-1 Automobile Technology Requirements Perspective

    2-1 Automobile Technology Requirements Perspective Needs and regulations Technology requirements Environment CO2 reductions, stringent Increase efficiency of internal emission regulations combustion engines, advance electronic control environmental Measures for greater fuel technology in idling stop

  7. Slide 7: 2-2 Global Auto Production Trends (1)

    2-2 Global Auto Production Trends (1) Compete with electronic control and electric drive technologies for both electric drive vehicles and internal combustion vehicles Global Automobile Production by Motive Power Type Key points (Million units/year) 109.30 Strengthen the advanced 96.63 HEV EV* 15 de

  8. Slide 8: 2-2 Global Auto Production Trends (2)

    2-2 Global Auto Production Trends (2) Promote global business development suited to local needs Automobile Production by Region Key points (Million units/year) 109.30 Strengthen 100 96.63 MONOZUKURI in 77.73 emerging markets 80 62 Rest of Asia 58 Central 54 Emerging nations and South 60 America East

  9. Slide 9: Contents

    Automotive Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Targets 4. Growth Strategy 5. Conclusion © Hitachi, Ltd. 2012. All rights reserved.

  10. Slide 10: 3-1 Business Policy

    3-1 Business Policy Develop into a system supplier that leads the world in electronic control and electric drive technologies Environment field Energy control with eco- friendly and high-efficiency CO2-reducing engine management systems, motors, inverters, lithium-ion batteries, etc. Ultra fuel-effi

  11. Slide 11: 3-2 Business Targets

    3-2 Business Targets FY2015 targets: revenues: over ¥1 trillion, operating income ratio: over 5.0% Overseas revenue ratio for global customer bases* Over 60% 50% 51% Over ¥1 trillion 48% Operating income ratio (%) 811.5 800.0 Revenues (Billion yen) 737.9 Over 5.0% 4.6% 4.6% 3.2% FY2010 FY2011 FY2012

  12. Slide 12: 3-3 FY2011 Results and FY2012 Forecasts

    3-3 FY2011 Results and FY2012 Forecasts (Billion yen) FY2010 FY2011 FY2012 Actual Actual YoY Forecast YoY Revenues 737.9 811.5 110% 800.0 99% Operating income 23.7 37.0 +13.2 37.0 0 Revenues increased in FY2011, reflecting higher global automobile demand, including growth in emerging markets and a r

  13. Slide 13: 3-4 Global Position Analysis

    3-4 Global Position Analysis Enhance growth potential by increasing electronics share* to world-leading level Positioning of Top 10 Global Parts Companies applying electronics in its Environmental, Safety and Information Suppliers by Revenues in FY2010 business Revenues Company A Environment Informa

  14. Slide 14: Contents

    Automotive Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Targets 4. Growth Strategy 5. Conclusion © Hitachi, Ltd. 2012. All rights reserved.

  15. Slide 15: 4-1 Global Growth Strategy

    4-1 Global Growth Strategy Develop into a system supplier that leads the world in electronic control and electric drive technologies Deepen global business Strengthen global management Develop strong businesses operations foundation Implement global Tighten focus on Strengthen global strategic inves

  16. Slide 16: 4-2 Increase Global Investment

    4-2 Increase Global Investment Domestic Over- Domestic 60% seas 40% Reverse 40% domestic/global ratio Overseas 60% ¥200 billion Increase global investment by 2.2 times ¥90 billion Increase investment in 50% electronics and electronic control and electromechanical 30% electric drive Total sum of Tota

  17. Slide 17: 4-3 Enhancement Measures by Region

    4-3 Enhancement Measures by Region (FY2011 Measures (1)) China Strengthened development and sales capabilities responding to local needs in China New [Zengcheng, Guangdong] Established Hitachi Automotive Systems (Guangzhou) (February 2012) Launched mass production of Eco-friendly products (April 201

  18. Slide 18: 4-4 Enhancement Measures by Region

    4-4 Enhancement Measures by Region (FY2011 Measures (2)) Strengthening electronic control and electric drive technologies in North America and Americas expanding business in Central and South America Enhancement [Harrodsburg, Kentucky, U.S.] New [Berea, Kentucky, U.S.] Increased electronic parts pro

  19. Slide 19: 4-5 Revenue Index by Overseas Region

    4-5 Revenue Index by Overseas Region Europe China 300 160 100 113 100 133 FY2010 FY2011 FY2015 FY2010 FY2011 FY2015 (Actual) (Actual) (Target) (Actual) (Actual) (Target) Americas 9 bases 17 bases 120 100 114 Asia 200 FY2010 FY2011 FY2015 (Actual) (Actual) (Target) 100 104 FY2010 FY2011 FY2015 14 bas

  20. Slide 20: 4-6 Strengthen Global Sales Capabilities

    4-6 Strengthen Global Sales Capabilities Expand business with global customers Over ¥1 trillion Develop strategy and provide support through GAM/GAT* For expanding global business with auto- manufacturers, bolster strategic proposals and ¥737.9 billion support by integrating contact points Other 29%

  21. Slide 21: 4-7 Strengthen Product Development [Environment]

    4-7 Strengthen Product Development [Environment] High-efficiency engine systems HEV system HEV Develop next-generation technologies and Build Hitachi-standard electric drive systems expand into global markets E-VTCs* Motors Fuel-efficient energy Create high-efficiency control systems High performanc

  22. Slide 22: 4-8 Strengthen Product Development [Safety and Information]

    4-8 Strengthen Product Development [Safety and Information] Drive control systems Car information systems Further enhance products with Enhance car information systems business electronic control technologies foundation through cooperation with Clarion Electrically-driven intelligent brakes Connecte

  23. Slide 23: 4-9 Next-Generation Electric Drive Vehicle Systems

    4-9 Next-Generation Electric Drive Vehicle Systems Ultra fuel-efficient and safe vehicles that connect people and society Promote development of next-generation electric drive vehicle systems Safety control Cloud network services Global data center ADAS* Next-generation controller cameras TCU* Telem

  24. Slide 24: 4-10 Strengthen Global Technology Development (1)

    4-10 Strengthen Global Technology Development (1) Strengthen Group-wide technology development and Upgrade production global design capabilities technologies (1) Strengthen electronic control and (2) Improve global design and development electric drive development system capabilities 4,000 Bolster t

  25. Slide 25: 4-11 Strengthen Global Technology Development (2)

    4-11 Strengthen Global Technology Development (2) Strengthen Group-wide technology development and Upgrade production global design capabilities technologies (1) Develop new concept small-lot production (2) Strengthen forging and molding lines for emerging markets technologies Reduce the number of e

  26. Slide 26: 4-12 Strengthen Global Management Foundation

    4-12 Strengthen Global Management foundation - Improve Quality and Cost Structure Reinforce management function of global quality assurance Bring global quality oversight management system fully into operation Global quality Implement special quality assurance activities focused for overseas product

  27. Slide 27: Contents

    Automotive Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Targets 4. Growth Strategy 5. Conclusion © Hitachi, Ltd. 2012. All rights reserved.

  28. Slide 28: Conclusion: FY2015 Targets

    5 Conclusion FY2015 Targets Revenues: Over ¥1 trillion Overseas Revenue Ratio for Global Customer Bases*: Over 60% Operating income ratio: Over 5.0% Develop into a system supplier that leads the world in electronic control and electric drive technologies *Customer bases that install automotive compo

  29. Slide 29: 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

  30. Slide 30: HITACHI Inspire the Next

    HITACHI Inspire the Next

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