Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2011)
29 slides from Hitachi's investor day presentation, Jun 16, 2011
Slide 1: Automotive Systems Business Strategy
Automotive Systems Business Strategy Hitachi IR Day 2011 June 16, 2011 Kunihiko Ohnuma President & CEO Hitachi Automotive Systems, Ltd. © Hitachi, Ltd. 2011. All rights reserved.
Slide 2: Contents
Automotive Systems Business Strategy Contents 1. Business Overview 2. Global Growth Strategy 3. Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 3: 1-1 Business Overview
1-1 Business Overview Other (10%) [Environment field] Powertrain & electronic control systems [Information field] Overseas Japan (30%) Car information systems (CIS) (44%) (56%) FY2010 (20%) Consolidated revenues ¥773.5 billion [Safety field] [Environment field] Drive control systems Engine managemen
Slide 4: 1-2 Main Products
1-2 Main Products Environment field Powertrain & electronic control systems Engine management systems <Electromechanical> <Fuel economy improvement> • Engine management • Lithium ion batteries systems • Variable valve • Hybrid systems systems • Engine equipment (Hitachi Vehicle Energy, Ltd.) Drive c
Slide 5: 1-3 Recovery after the Great East Japan Earthquake
1-3 Recovery after the Great East Japan Earthquake Entire Hitachi Group worked as one to restore production facilities rapidly, through cooperation among Hitachi bases and support from business partners. Production restarted on March 25. Overview for FY2011 Revenues 98% • Results for the first half
Slide 6: Contents
Automotive Systems Business Strategy Contents 1. Business Overview 2. Global Growth Strategy 3. Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 7: 2-1 Market Environment (1)
2-1 Market Environment (1) Global Automobile Production Forecast Global Automobile Production Forecast by Region by Motive Power Type Total +6.0% : Growth rate (From 2010 to 2015) (Million units/year) (Million units/year) 96.1 96.1 100 100 HEV / EV +24.9% 80 71.8 Other 80 71.8 +0.4% +8.9% +2.4% 60 C
Slide 8: 2-1 Market Environment (2)
2-1 Market Environment (2) Regulatory trends in environment field Roadmap for environmental technologies ■ Strengthening fuel efficiency (CO2 emissions) and ■ Increase efficiency of internal emissions regulations combustion engines and develop ■ Even in emerging markets, regulations are expected to
Slide 9: 2-2 Structure of Automotive Systems Segment
2-2 Structure of Automotive Systems Segment New segment created in FY2011 to include Battery Systems Company Strengthen technologies in all areas relating to battery products from materials to control technology particularly for automotives, and aim for greater growth and development through integra
Slide 10: 2-3 Business Targets up to FY2015
2-3 Business Targets up to FY2015 FY2015 targets: revenues: over ¥1 trillion, operating income ratio: over 5.0% Automotive Systems segment Battery Systems Company (Figure of 2009 and 2010 are restated based on new organization in 2011) 3.5% Over 5.0% 2.5% 2.4% Over ¥1 trillion Operating income ratio
Slide 11: 2-4 Global Growth Strategy – Meeting FY2015 Business Targets
2-4 Global Growth Strategy – Meeting FY2015 Business Targets Become a global supplier driving the automotive systems related market Reinforcing with (1) Global the three “G”s sales strategy (2) Global (3) Global distinctive management technologies foundations Double revenues of 1 “Global customers”
Slide 12: 2-5 Global Sales Strategy (1)
2-5 Global Sales Strategy (1) Example of global customer strategy targets (FY2015 revenues) Customer Base Composition by Revenue (FY2009) 8 companies/groups* FY2015 (Target) Total revenues for FY2009: ¥230.0 billion *Customers comprising 10% or less ¥230 billion ¥460 billion (36%) (46%) Double reven
Slide 13: 2-5 Global Sales Strategy (2)
2-5 Global Sales Strategy (2) Double the revenues in emerging nations by FY2015 (compared to FY2010) Increase Overseas Revenue Ratio for Global Customer Bases* from 49% (FY2010) to over 60% (FY2015) China 300 100 2010 2015 Emerging nations Central and Actual Target : total South America 200 150 Asia
Slide 14: 2-5 Global Sales Strategy (3) China
2-5 Global Sales Strategy (3) Implement measures to expand business in emerging nations １ Develop compliance initiatives for Chinese environmental regulations (EURO5/CAFE*) and expedite development of locally-based operations Direct injection systems, VTC*, injectors, pistons, etc. China ２ Expand bu
Slide 15: 2-5 Global Sales Strategy (4)
2-5 Global Sales Strategy (4) Example of measures to expand business in emerging nations – New business scheme in Mexico Central １ Start optimizing production across global facilities, And South including product supply to the Americas America ２ Increase collaboration with Clarion Co., Ltd. UNISIA M
Slide 16: 2-6 Global Distinctive Technologies (1)
2-6 Global Distinctive Technologies (1) Promote in-house development of comprehensive control system for next-generation electric drive vehicles *ADAS: Advanced Driver Assistance System Global data center *DCM: Data Communication Module DCM* Stereo camera Exhaust-heat recovery system Car navigation
Slide 17: 2-6 Global Distinctive Technologies (2)
2-6 Global Distinctive Technologies (2) Example [Environment field]: HEV systems (motors, inverters, lithium-ion batteries) Drive adoption of electronic control and electromechanical systems with industry-leading distinctive Hitachi technologies, and systems development capabilities (1) Inverters: M
Slide 18: 2-6 Global Distinctive Technologies (3)
2-6 Global Distinctive Technologies (3) Example [Environment field]: High-efficiency engine system (DI* system, VTC*) Increase fuel efficiency for gasoline engines, by far the leading engine type, and develop global operations based on the principle of local production for local consumption (1) Impr
Slide 19: 2-6 Global Distinctive Technologies (4)
2-6 Global Distinctive Technologies (4) Example [Safety field]: Electrically-driven intelligent brake Develop and mass produce new electric drive braking system ⇒ Accelerate the development as a series (compact version, low-cost version, version w/ brake booster, etc.) and increase sales globally (1
Slide 20: 2-6 Global Distinctive Technologies (5)
2-6 Global Distinctive Technologies (5) Example [Information field]: ICT* solution for EVs Support EVs via global telematics centers ~ Strengthen collaboration with Clarion navigation system and DCM* ~ Strengths Onboard system for Nissan Leaf (1) EV drive support function Notify driver when rechargi
Slide 21: 2-6 Global Distinctive Technologies (6)
2-6 Global Distinctive Technologies (6) Developing methods to increase differentiation and efficiency in production Develop production capabilities that surpass all others through improvements in differentiation methods and technologies • Friction Stir Welding technology • New center Lead time Calip
Slide 22: 2-7 Global Business Foundation (1)
2-7 Global Business Foundation (1) Start full operation of regional HQ systems based around 4 key overseas regions ■ Previous ■ New framework framework (1) Achieve speedy management by expediting decision- Management making structure centered Objectives (2) Start operation of locally-led management,
Slide 23: 2-7 Global Business Foundation (2)
2-7 Global Business Foundation (2) Increase investment in electronic control and electric drive products and overseas bases to execute global strategy 1 Global investment Composition of global investment and investment 70% increase in cumulative investment for in electronic control and electric driv
Slide 24: 2-7 Global Business Foundation (3)
2-7 Global Business Foundation (3) Strengthen global procurement capabilities Promote measures to maintain procurement networks to ensure stable supply lines Information sharing for establishing 1 Expand local and international a consistent supply chain of parts that require long production lead tim
Slide 25: 2-7 Global Business Foundation (4)
2-7 Global Business Foundation (4) Strengthen global quality assurance initiatives Achieve the standard of craftsmanship, high reliability and high quality that expected of Japanese products at all bases worldwide 1 Reinforce global quality assurance Corporate Quality Global Quality Americas framewo
Slide 26: Contents
Automotive Systems Business Strategy Contents 1. Business Overview 2. Global Growth Strategy 3. Conclusion © Hitachi, Ltd. 2011. All rights reserved.
Slide 27: Conclusion: FY2015 Targets
3 Conclusion FY2015 Targets Revenues: Over ¥1 trillion Overseas Revenue Ratio for Global Customer Bases* : Over 60% Operating income ratio: Over 5.0% Achieving the goals set out in this global growth strategy will increase our competitiveness on the world stage. *These are combined ratio with figure
Slide 28: 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 29: HITACHI Inspire the Next
HITACHI Inspire the Next