Hitachi, Ltd. · TSE:6501
Hitachi — Hitachi Energy — Investor Day (November 2023)
26 slides from Hitachi's investor day presentation, Nov 13, 2023
Slide 1: Hitachi Energy Investor Days 2023
Hitachi Energy Investor Days 2023 November 13-15, 2023 Switzerland and Sweden 2023-11-13 © 2023 Hitachi Energy. All rights reserved.
Slide 2: Welcome & Introduction
Hitachi Energy Investor Days 2023 Welcome & Introduction Claudio Facchin Senior Executive VP, Hitachi, Ltd. and CEO, Hitachi Energy Hitachi Energy – Advancing a sustainable energy future for all 2
Slide 3: Our License to Operate: Safety, Integrity, Quality
Hitachi Energy – Our License to Operate: Safety, Integrity, Quality Health & Safety Ethics & Integrity Lean Six Sigma used across operations Ongoing continuous ~2k improvement projects Employees trained 30k+ in Lean Six Sigma Safety Integrity Quality Public 3 © 2023 Hitachi Energy. All rights reserv
Slide 4: Recap Hitachi Investor Day 2022
Hitachi Energy – recap «Hitachi Investor Day 2022» We are well-positioned in attractive markets to accelerate the clean energy transition in collaboration with 1 customers and partners as a market and technology leader in power grids We drive profitable and sustainable growth with our Hitachi Energy
Slide 5: Power Grids global technology and market leader
Hitachi Energy – Power Grids global technology and market leader Global leader in Total Energy System: Power Grids technologies Generation Transmission & distribution Consumption >40,000 employees Customers ■ Utilities ■ Industry ■ Transport & Infrastructure Offering ■ Products ■ Systems ■ Software
Slide 6: Technology and market leader across all business units
Hitachi Energy – Technology and market leader across all business units Grid Automation (GA) Grid Integration (GI) High Voltage Products (HV) Transformers (TR) Global leader in HVDC2 Global leader across complete Supporting 50% of the top Installed 1 out of 4 high-voltage >150 GW3 of HVDC links rang
Slide 7: Electricity will be the backbone of the entire energy system
Pathway to a carbon-neutral energy system 01 Share of fossil-free energy: Accelerated shift from fossil-based to renewable power generation Electricity will be the backbone 02 of the entire Growing electrification of Transportation, Industry and energy system Buildings sectors Global electricity dem
Slide 8: IEA Grids report: Double grid investment to meet national climate targets
IEA Grids report: Double grid investment to meet national climate targets In scale of infrastructure… …and in grid investment Key drivers Grid lengths, m km USD $bn Electrification Expansion Replacement At recent growth rate Gap to APS1 and demand 650 growth 90 600 80 550 500 Renewables 70 450 2x tr
Slide 9: We have streamlined the business and we are well positioned for growth
We have streamlined the business and we are well positioned for growth Improved Business model, performance and Enablers Investing for growth collaboration & Building synergies resilience innovation Increasing size and Operational excellence Expand capacity and Partnerships ecosystem Energy + Digita
Slide 10: Continuing our profitable and sustainable growth journey
Continuing our profitable and sustainable growth journey ~15% 7 BUSD+ ~0.5 BUSD p.a. Revenue growth Renewable integration with positive impact (CAGR FY 2021 - FY 2023 E) new business models from enablers (Orders FY 2021 - H1 2023) Continuously strengthen core power Life cycle partner across the powe
Slide 11: Expanding capacity and workforce to meet demand for electrification
Expanding capacity and workforce to meet demand for electrification Since we started the journey with Hitachi $3 billion 8,000+ in 2020, we have been able to accelerate our Investments People hired since 2020 growth and expansion, also leveraging synergies across Hitachi Group Our technologies enabl
Slide 12: Hitachi Energy 2030: purpose-driven strategic growth plan
Hitachi Energy 2030: purpose-driven strategic growth plan Strengthen the Core: Utilities – Industry – Transport & Infrastructure 01 Continuously strengthening our power grids core business Plan Build Operate & Maintain Expand Digital & Services: Doubling efforts on Digital & Services. 02 Expanding a
Slide 13: Fundamental technology areas for the power system evolution
Fundamental technology areas for the power system evolution Power Electronics Digital technology and services Sustainable products and solutions Each clean GW that we add to the energy system needs to be balanced with an increase in grid capacity and flexibility to meet security, reliability and res
Slide 14: Integrating power systems across countries and sectors
Integrating power systems across countries and sectors 2020-2050: from some HVDC links to TenneT 2GW: Long-term agreement ADNOC – Project Lightning: interconnected meshed offshore grid with global standards & new Delivering clean power from shore collaborative business models Photo: Photo: Courtesy
Slide 15: Hitachi Energy Acquires eks Energy
In line with our 2030 Plan: Hitachi Energy Acquires eks Energy Strengthen the Core: 01 Continuously strengthening our power grids core business We are proud of what we have already developed with eks Energy, including one of the world’s largest battery projects in history, the Expand Digital & Servi
Slide 16: Synergies between Hitachi Energy, GlobalLogic & Hitachi Digital Services
Synergies between Hitachi Energy, GlobalLogic & Hitachi Digital Services - An unparalleled competitive advantage Encompassing all of Japan- The Ten Electric Power Companies by Service Areas Combining Hitachi unique First of its kind system IT, OT, products and integrating nationwide grid and service
Slide 17: Our approach to sustainability – engaging across stakeholders
Our approach to sustainability – engaging across stakeholders Our 360° approach to Maximizing positive impact 01 Transparency, validation & recognition 02 ESG1: beyond carbon neutrality 03 through engagement & collaboration Circularity Updated Sustainability strategy: portfolio focus, aligned to our
Slide 18: Ambition 2024
Hitachi Energy | Ambition 2024 Revenues, BUSD Adj. EBITA %, Standalone1 ROIC2 %, Standalone1 12% 12-15% p.a. ~15% 10% 8% 10% 10 6.1% FY 2021 FY 2024 FY 2021 FY 2024 FY 2021 FY 2024 Sustaining industry leadership in performance Continue to grow above market and sustain margins, at upper end of range
Slide 19: Hitachi Energy will continue to create significant value
Hitachi Energy will continue to create significant value Significant High High capital High value creating market tailwinds growth returns business Public © 2023 Hitachi Energy. All rights reserved.
Slide 20: @ Hitachi Energy
@ Hitachi Energy
Slide 21: Inspire the Next
HITACHI Inspire the Next
Slide 22: Concluding Remarks
Hitachi Energy Investor Days 2023 Concluding Remarks Claudio Facchin Senior Executive VP, Hitachi, Ltd. and CEO, Hitachi Energy Hitachi Energy – Advancing a sustainable energy future for all 22
Slide 23: Well positioned for profitable & sustainable growth
Well positioned for profitable & sustainable growth …with a purpose-driven ….to deliver profitable and Well positioned… ...in attractive markets… strategic plan… sustainable growth Hitachi Energy global leader Higher growth driven by Hitachi Energy 2030 Revenues, BUSD >10 BUSD electrification and Bu
Slide 24: Hitachi Energy will continue to create significant value
Hitachi Energy will continue to create significant value Significant High High capital High value creating market tailwinds growth returns business Public © 2023 Hitachi Energy. All rights reserved.
Slide 25: @ Hitachi Energy
@ Hitachi Energy
Slide 26: Inspire the Next
HITACHI Inspire the Next