Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2016)

22 slides from Hitachi's investor day presentation, Jun 1, 2016

  1. Slide 1: Systems & Services Business Strategy

    Systems & Services Business Strategy Hitachi IR Day 2016 June 1, 2016 Keiichi Shiotsuka Senior Vice President and Executive Officer, Head of Systems & Services Business Hitachi, Ltd. © Hitachi, Ltd. 2016. All rights reserved.

  2. Slide 2: Contents

    Systems & Services Business Strategy [Contents] 1. Review of 2015 Mid-term Management Plan 2. Function of the Systems & Services Business 3. Growth Strategy 4. Business Performance Trends 5. Conclusion © Hitachi, Ltd. 2016. All rights reserved.

  3. Slide 3: 1. Review of 2015 Mid-term Management Plan

    1. Review of 2015 Mid-term Management Plan [Information & Telecommunication Systems Segment]  Expanded revenues and achieved optimization of consolidated management  Challenges lie in taking prompt action on changes to the market environment and achieving global levels of profitability Previous [R

  4. Slide 4: Contents

    Systems & Services Business Strategy [Contents] 1. Review of 2015 Mid-term Management Plan 2. Function of the Systems & Services Business 3. Growth Strategy 4. Business Performance Trends 5. Conclusion © Hitachi, Ltd. 2016. All rights reserved.

  5. Slide 5: 2-1. Hitachi Group's Position in FY2018

    2-1. Hitachi Group’s Position in FY2018 Front develops and provides services to drive expansion of revenues and profits Front Power / Energy Industry / Urban 金融・公共・ヘルスケア Finance / Public / Distribution / Water Healthcare - Transition to distributed - Use “Lumada” IoT -Improvement of Quality - FinTec

  6. Slide 6: 2-2. Function of the Systems & Services Business

    2-2. Function of the Systems & Services Business Connect the services, platforms and products of each front BU modeling after the front BUs that are leading in digitalization Accelerate Digitalized Social Innovation Business Front Power / Energy Industry / Urban 金融・公共・ヘルスケア Finance / Public / Distri

  7. Slide 7: 2-3. Systems & Services Business Fields

    2-3. Systems & Services Business Fields Front Business FY2015  Consulting Revenues 2,109.3 billion yen  Financial Information Systems  Enterprise Information Systems IT for banks, insurance IT for industry and Distribution and capital markets  Power / Energy IT and Rail Systems IT  Government &

  8. Slide 8: Contents

    Systems & Services Business Strategy [Contents] 1. Review of 2015 Mid-term Management Plan 2. Function of the Systems & Services Business 3. Growth Strategy 4. Business Performance Trends 5. Conclusion © Hitachi, Ltd. 2016. All rights reserved.

  9. Slide 9: 3-1. Business Policy

    3-1. Business Policy Expand social innovation business with a focus on global and digital solutions as growth targets Collaborative Creation (Open) Driver of overall growth Base Driver Business Product Maintenance / Global and Digital Solutions Business System Operation Develop market with business

  10. Slide 10: 3-2. FY2018 Business Performance Target and Key Measures

    FY2018 Business Performance Target 3-2. and Key Measures [by Sub-segment] Accelerate the shift to services and solutions and switch to a high-profitability structure with adjusted operating income ratio of 10%  Business performance target FY2015 Results FY2016 Forecast FY2018 Target Vs. FY2015 Reve

  11. Slide 11: 3-3. Front Business

    3-3. Front Business Launch digital solutions positioning systems integration business as a base Establish a digital solution business model and expand global business  Strengthen upstream consulting that creates new business models  Develop and provide new services utilizing IoT platform (Smart fa

  12. Slide 12: 3-4. IT Platform

    3-4. IT Platform Build the platform for digital solutions  Develop the IoT platform that combine IT (Information Technology) and OT (Operational Technology) by operating integrally with Services & Platforms BU  Deploy the IoT platform globally as a growth engine for expanding digital solutions mar

  13. Slide 13: 3-5. IT Products

    3-5. IT Products Focus on products supporting digital solutions Transform business portfolio focusing on products related to the IoT platform 1. Priority development products Product Functions for IoT Platform  Flash storage Storage  Data Management  Big data / IoT data management • Data lifecycl

  14. Slide 14: 3-6. Strengthen Cost Strategy and Cash Generation

    3-6. Strengthen Cost Strategy and Cash Generation Switch to a cost and profit structure that responds to the shift to service businesses 6.7 7.0 Adjusted 10.0 operating  Optimize back-office departments income ratio within the Group 28.3 27.2 SG&A 27.2 [(1.1)] SG&A [±0.0] margin  Reduce expenditur

  15. Slide 15: Contents

    Systems & Services Business Strategy [Contents] 1. Review of 2015 Mid-term Management Plan 2. Function of the Systems & Services Business 3. Growth Strategy 4. Business Performance Trends 5. Conclusion © Hitachi, Ltd. 2016. All rights reserved.

  16. Slide 16: 4-1. Business Performance Trends (1)

    4-1. Business Performance Trends (1) Revenues Billions of yen Increased Increased sales Reduction sales from from IT Platform Front Business & Products 2,109.3 FX effects in large projects, etc. Expanded sales +135.0 +5.0 2,200.0 (65.2) (40.5) +36.4 2,040.0 Eliminations and Others +20.0 FY2015 (Resu

  17. Slide 17: 4-2. Business Performance Trends (2)

    4-2. Business Performance Trends (2) FY2015 (Results) FY2016 (Forecast) FY2018 (Target) Orders Received (billions of yen) 2,257.1 2,040.0* 2,200.0* Overseas Revenue Ratio 33% 34% 37% Revenues Adjusted Operating Income / EBIT (billions of yen) (billions of yen) 2,500 2,200.0 220.0 220.0 250 2,109.3 [

  18. Slide 18: 4-3. Business Performance Trends (3) [By Sub-segment]

    4-3. Business Performance Trends (3) [By Sub-segment] Revenues Billions of yen 2,109.3 2,200.0 2,040.0 786.6 755.0 750.0 Front Business IT Platform 1,429.8 1,420.0 1,555.0 & Products FY2015 FY2016 FY2018 (Results) (Forecast) (Target) Eliminations & Others (107.1) (130.0) (110.0) Adjusted operating i

  19. Slide 19: Contents

    Systems & Services Business Strategy [Contents] 1. Review of 2015 Mid-term Management Plan 2. Function of the Systems & Services Business 3. Growth Strategy 4. Business Performance Trends 5. Conclusion © Hitachi, Ltd. 2016. All rights reserved.

  20. Slide 20: 5. Conclusion: FY2018 Target

    5. Conclusion FY2018 Target FY2018 Vs. FY2015 Revenues 2,200.0 billion yen +90.7 billion yen [+4.3%] Adjusted Operating 10.0% [10.0%] +3.3% [+4.8%] Income [ EBIT ] Ratio Gross Profit Margin +3.3 points (Vs. FY2015) SG&A Margin ±0.0 points (Vs. FY2015) Expand the social innovation business with a foc

  21. Slide 21: 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

  22. Slide 22: © Hitachi, Ltd. 2016. All rights reserved.

    © Hitachi, Ltd. 2016. All rights reserved.

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