Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2018)
22 slides from Hitachi's investor day presentation, Jun 8, 2018
Slide 1: Systems & Services Business Strategy: Expanding Digital Solutions Globally
Systems & Services Business Strategy Expanding Digital Solutions Globally Hitachi IR Day 2018 June 8, 2018 Keiichi Shiotsuka Executive Vice President and Executive Officer Head of Systems & Services Business Head of the Social Innovation Business Hitachi, Ltd. © Hitachi, Ltd. 2018. All rights reserv
Slide 2: Introduction [Scope of Business in Charge]
Introduction [Scope of Business in Charge] Keiichi Shiotsuka Head of Systems & Services Business and Head of the Social Innovation Business Power / Urban Industry & Social Financial Healthcare Defense Energy Distribution InfrastructureI Institutions BU Systems / Water Systems BU BU BU Services & Pla
Slide 3: Contents
Systems & Services Business Strategy Contents 1. Progress of the 2018 Mid-term Management Plan 2. Toward the Next Mid-term Management Plan 3. Conclusion © Hitachi, Ltd. 2018. All rights reserved. 3
Slide 4: 1-1. Business Performance
1-1. Business Performance [Information & Telecommunication Systems Segment] Strengthen cash generation needed for growth investment, thereby significantly improving profitability 9.4％ 9.7％ 7.7％ 6.7％ 6.9％ 9.5％ Adjusted operating income ratio EBIT ratio 3.9％ 5.2％ Revenues (Billion yen) 2,109.3 1,982.8
Slide 5: 1-2. Reinforcing Management Base
1-2. Reinforcing Management Base Implement business structural reforms boldly by scrutinizing the profitability and future potential of existing businesses Hardware Manufacturing Business Collaboration with UMC Electronics in reinforcement Reinforcement of manufacturing Storage Business Transforma
Slide 6: 1-3. Transformation of Business Portfolio
1-3. Transformation of Business Portfolio Transform the business portfolio into one focused on the solution and service businesses Reinforcement measures Merger of Hitachi Government & Public Sector Systems and Hitachi INS Software Establishment of Acquisition of oXya (IT services) Collaboration wit
Slide 7: 1-4. Loss Cost Reduction and Productivity Improvement
1-4. Loss Cost Reduction and Productivity Improvement Improve profitability by enhancing productivity through the use of digital technologies and work-style reform, in addition to reducing loss cost by ensuring and strengthening project management 9.4％ 9.7％ Adjusted operating FY2018 income ratio 7.7
Slide 8: 1-5. Changing Direction to Growth Path
1-5. Changing Direction to Growth Path Launch Lumada globally and promote digital transformation through collaborative creation with customers and partners Establishing a structure for Establishment of Hitachi Vantara (September 2017) and Hitachi Global Digital Holdings (April 2018) the global del
Slide 9: 1-6. Major Achievements
1-6. Major Achievements Expanded digital solutions through collaborative creation with customers/ partners in each area Financial Transportation Distribution Digitizing financial services Analyzing data on bus running Sophisticating the prediction of provided by Vietnam Post records and loading hist
Slide 10: Contents
Systems & Services Business Strategy Contents 1. Progress of the 2018 Mid-term Management Plan 2. Toward the Next Mid-term Management Plan 3. Conclusion © Hitachi, Ltd. 2018. All rights reserved. 10
Slide 11: 2-1. FY2018 Business Policy
2-1. FY2018 Business Policy Accomplish 2018 Mid-term Management Plan and make necessary preparations toward new growth FY2018 Moving toward the next stage Accomplishing 2018 Mid-term Management Plan Preparations for the next 2021 Mid-term Management Plan Digital solutions for realizing Society 5.0 a
Slide 12: 2-2. Goals to Achieve by FY2021
2-2. Goals to Achieve by FY2021 Becoming a top-class solution provider in the global market, fulfilling expectations of customers worldwide 15.0 Top-class solution provider in the global market Adjusted operating income ratio: Over 10％ FY2017 results of companies CAGR: Over 5％ The size of the circle
Slide 13: 2-3. Measures to Increase Revenues
2-3. Measures to Increase Revenues Systems & Services Business serves as the leading force for the expansion of Social Innovation Business that applies digital technologies. Social Innovation Business Digital solutions based on Lumada OT IT Products Urban Industry & Distribution / Water Power / Ener
Slide 14: 2-4. Expansion of Global Business (1)
2-4. Expansion of Global Business (1) Launch Hitachi Global Digital Holdings in FY2018 and make it into the growth driver of the global business Social Innovation Business Digital solutions based on Lumada OT IT Products Leading force of Social Innovation Business that Hitachi operates globally Hita
Slide 15: 2-4. Expansion of Global Business (2)
2-4. Expansion of Global Business (2) Aim for significant growth in North American and Asian markets Taking advantage of the strengths of our domestic business in businesses with Asian bases for Japanese companies and others China North Europe America Japan Asia Improving delivery capabilities Wealt
Slide 16: 2-4. Expansion of Global Business (3)
2-4. Expansion of Global Business (3) Accelerate global expansion of solution business that applies digital technologies Smart Manufacturing 産業分野 Maintenance & Repair Dynamically optimizing the overall value chain, ＡＩを活用して Optimal repair work for a variety of industrial including placement of orders
Slide 17: 2-4. Expansion of Global Business (4)
2-4. Expansion of Global Business (4) Accelerate global expansion of solution business that applies digital technologies 産業分野 Smart Mobility Smart Society Optimizing the operation plan based on the Improving the efficiency and safety of living demand forecast created by analyzing human spaces throug
Slide 18: Contents
Systems & Services Business Strategy Contents 1. Progress of the 2018 Mid-term Management Plan 2. Toward the Next Mid-term Management Plan 3. Conclusion © Hitachi, Ltd. 2018. All rights reserved. 18
Slide 19: 3. Conclusion
3. Conclusion A super smart society Sustainable Development Goals(SDGs) where everyone can live a life with vitality and in comfort Society 5.0 Digital-centric business entity Serve as the leading force of the Social Innovation Business of Hitachi and achieve its growth in the global market by maxim
Slide 20: 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 21: Hitachi: Inspire the Next
HITACHI Inspire the Next
Slide 22: (Appendix) Strengthen Cost Strategy and Cash Generation
(Appendix) Strengthen Cost Strategy and Cash Generation Switch to a cost and profit structure that corresponds to the shift to service businesses 7.7 9.4 9.7 Adjusted operating Income ratio Review of organizations/systems 26.6 26.4 SG&A ratio and rules/operations/IT SG&A 26.8 [+0.2] [improvement p