Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2011)
23 slides from Hitachi's investor day presentation, Jun 16, 2011
Slide 1: Railway Systems Business Strategy
Railway Systems Business Strategy Hitachi IR Day 2011 June 16, 2011 Hiroshi Nakayama President & CEO, Rail Systems Company Hitachi, Ltd. © Hitachi, Ltd. 2011. All rights reserved.
Slide 2: Contents
Railway Systems Business Strategy Contents . Overview . Market Environment . Policy and Strategy . Performance and Targets . Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 3: 1-1 Revenues by Systems and Products & Services
1-1 Revenues by Systems and Products & Services Transport management & control systems Rolling stock systems Signaling/traffic management systems Rolling stock/Overseas maintenance Signaling/train control systems High-speed trains Limited express trains 32% FY2010 consolidated revenues ¥133.1 billio
Slide 4: 1-2 Organization
1-2 Organization Rail Systems Company Rail Systems Division Sales & Marketing Division Kasado Rail Systems Product Div. Rail Systems Sales Div. (Domestic market) (Rolling stock) Global Sales & Marketing Div. (Overseas market) Mito Rail Systems Product Div. (Electrical components, signaling/ train co
Slide 5: Contents
Railway Systems Business Strategy Contents . Overview . Market Environment . Policy and Strategy . Performance and Targets . Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 6: 2-1 Market Trends
2-1 Market Trends Japan Increase investment in services and environment-related areas, but major growth in capital expenditures cannot be expected Drop off construction of new Shinkansen lines, and increase demand on replacement/upgrading aging lines, etc. Overseas 11 trillion yen per 3 years averag
Slide 7: 2-2 Competitive Environment and Hitachi's Position
2-2 Competitive Environment and Hitachi's Position Position as a Total Systems Integrator Rolling stock Transport management & systems control systems Position Rolling Electrical Signaling/ stock components traffic management Chinese Hitachi Company A 800 Big3 Big3 Company C Company B Big 3 Revenues
Slide 8: 2-3 Strength and Key Target
2-3 Strength and Key Target Rolling stock systems Transport management & control systems Higher efficiency, lower environmental impact High reliability Aluminum train technology Signaling/train control systems (High-speed trains, Commuter trains) technologies Highly economical rolling stock in the n
Slide 9: Contents
Railway Systems Business Strategy Contents . Overview . Market Environment . Policy and Strategy . Performance and Targets . Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 10: 3-1 Policy and Strategy
3-1 Policy and Strategy Accelerate Globalization with Technologies Developed in Japan Target Strategies Revenues*: ¥320 billion Sustainable Growth in Japan Overseas revenue : 60% Expand sales of rolling stock systems Operating income : 8% Secure market share in signaling/train control systems Expand
Slide 11: 3-2 Sustainable Growth in Japan
3-2 Sustainable Growth in Japan Expand Sales of Rolling Stock Systems Expand aluminum trains (A-train) sales to municipal and private railways Hankyu Corporation Series 9000 train, Tobu Railway Co., Ltd. Series 50000 train Secure market share of Shinkansen East Japan Railway Company E5/E6 series Exp
Slide 12: 3-3 Expand Overseas Business (1)
3-3 Expand Overseas Business (1) Further Expansion of U.K. and Chinese Business Challenge to Emerging Markets (Urban Transport Including Monorail) U.K. Rolling stock + maintenance, Electrical components, Signaling/train control systems China Electrical components, Signaling/train control systems Eme
Slide 13: 3-3 Expand Overseas Business (2)
3-3 Expand Overseas Business (2) U.K. (1) Rolling stock + maintenance Expand maintenance business by Rolling stock sales Establish high profitable business model by maintenance business - Starting-up a full maintenance service for Class 395 train Challenge to the future project, (Rolling stocks and
Slide 14: 3-3 Expand Overseas Business (3): Intercity Express Programme
3-3 Expand Overseas Business (3) U.K. (2) Intercity Express Programme (IEP) Background Mar. 2009 Selected as preferred bidder Mar. 2011 Resumed negotiations with UK Department for Transport Dec. 2011 Financial close Existing High Speed Train New-type train (image) Project overview High Speed Trains
Slide 15: 3-3 Expand Overseas Business (4)
3-3 Expand Overseas Business (4) China (1) Electrical components Signaling/train control systems High-speed railways Middle and high speed railways High-speed train(300kph)CRH380C Expand sales of Chinese-version train Order receipt for 25 trains control systems (CTCS) - Dedicated high speed passenge
Slide 16: 3-3 Expand Overseas Business (5)
3-3 Expand Overseas Business (5) China (2) Increase local production capacity (Establish Changchun plant) Hitachi Yonge Electric Equipment (Xi‘an) Co., Ltd. (HYEE*) Changchun (HYC) Expand production capacity Beijing 50sets/month → 80sets/month 2010 Established the second production site in Changchun
Slide 17: 3-3 Expand Overseas Business (6)
3-3 Expand Overseas Business (6) Emerging Markets Increasing demands for Total project integration Target projects - Systems integration for urban transport (E&M) Metro, Monorail - Subsystems integration Signaling Station facilities Signaling, Rolling stock Target region Communication E&M Depots Sou
Slide 18: Contents
Railway Systems Business Strategy Contents . Overview . Market Environment . Policy and Strategy . Performance and Targets . Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 19: Performance and Targets
4 Performance and Targets Revenues 60% Operating (Billion yen) 320 Income (%) Core systems and markets Rolling stock systems 300 Overseas revenues Rolling stocks - IEP (U.K.) 8.0% 8.0% 31% 31% - Shinkansen (Japan) 24% Electrical components - Middle-and High-speed (China) - New markets 200 (India) Si
Slide 20: Contents
Railway Systems Business Strategy Contents . Overview . Market Environment . Policy and Strategy . Performance and Targets . Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 21: FY2015 Targets
5 FY2015 Targets FY2015 Targets Revenues: ¥320 billion Overseas revenue : 60% Operating income : 8% Accelerate Globalization with Technologies Developed in Japan © Hitachi, Ltd. 2011. All rights reserved. 21
Slide 22: 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 23: HITACHI Inspire the Next
HITACHI Inspire the Next