Hitachi, Ltd. · TSE:6501

Hitachi — Hitachi Ltd Ord — Q1 2023 Earnings Presentation

23 slides from Hitachi's earnings presentation, Jul 28, 2023

  1. Slide 1: Outline of Consolidated Financial Results for the First Quarter Ended June 30, 2023

    Outline of Consolidated Financial Results for the First Quarter Ended June 30, 2023 [Fiscal 2023] July 28, 2023 Yoshihiko Kawamura Executive Vice President and Executive Officer, CFO Hitachi, Ltd. © Hitachi, Ltd. 2023. All rights reserved.

  2. Slide 2: Contents

    Contents 1. Key Messages 2. Q1 FY2023 Results 3. FY2023 Forecast 4. Appendix © Hitachi, Ltd. 2023. All rights reserved. 1

  3. Slide 3: 1. Key Messages

    1. Key Messages © Hitachi, Ltd. 2023. All rights reserved. 2

  4. Slide 4: Key Messages

    Key Messages 1 Q1 FY23 continuing consolidated business(1) revenues were 1,828.3bn yen (YoY +12%), Adjusted EBITA*1 was 156.9bn yen (YoY +31.9bn yen) • Hitachi Energy performed well on strong demand, and profitability improved Stable order growth mainly in large-scale businesses 2 • • • Digital Syst

  5. Slide 5: 2. Q1 FY2023 Results

    2. Q1 FY2023 Results © Hitachi, Ltd. 2023. All rights reserved. 4

  6. Slide 6: Highlights of Results (Q1 FY23)

    Highlights of Results (Q1 FY23) • Continuing consolidated business performed well mainly in Hitachi Energy. Revenues and profits increased due to the absence of the impact of lockdown in China in previous fiscal year, and FX impact • While the impact of rising material prices continued, the impact w

  7. Slide 7: Q1 FY23 Results by Business Segment (1/3)

    Q1 FY23 Results by Business Segment (1/3) Q1 FY23 YoY Dynamics Billions of yen Revenues Adj. EBITA(1) Revenues Adj. EBITA Digital Systems & 545.9 52.4 +8% +3.1 • Segment revenues and profits increased Services*3 9.6% [+6%](2) (0.2) pts • In Front Business, revenues and profits increased due to stead

  8. Slide 8: Q1 FY23 Results by Business Segment (2/3)

    Q1 FY23 Results by Business Segment (2/3) Q1 FY23 YoY Dynamics Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Connective 695.3 67.8 +4% +6.7 Industries • Segment revenues and profits increased due to sales expansion 9.8% [+3%](1) +0.7 pts of digital solutions and products for industrial fie

  9. Slide 9: Q1 FY23 Results by Business Segment (3/3)

    Q1 FY23 Results by Business Segment (3/3) Q1 FY23 YoY Dynamics Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Hitachi Astemo 494.1 14.0 +27% +18.7 • Revenues and profits increased due to the absence of the impact of lockdown in China in Q1 FY22, resolving 2.9% [+23%](1) +4.1 pts semiconduct

  10. Slide 10: Factors Affecting Changes in Revenues and Adjusted EBITA (Q1 FY23 Total)

    Factors Affecting Changes in Revenues and Adjusted EBITA (Q1 FY23 Total) Revenues Billions of yen Q1 FY22 Q1 FY23 \130/US$ \137/US$ \138/€ \149/€ Adjusted EBITA Billions of yen • Changes in business scale • Selling price change • Impact of rising material prices • Structure reinforcement correspondi

  11. Slide 11: Financial Position and Cash Flows

    Financial Position and Cash Flows Summary of Consolidated Financial Position As of As of Change from Billions of yen March 31, 2023 Jun 30, 2023 March 31, 2023 Total assets 12,501.4 13,155.3 +653.9 Cash and cash equivalents 833.2 925.4 +92.1 Trade receivables and contract assets 2,874.9 2,741.0 (133

  12. Slide 12: 3. FY2023 Forecast

    3. FY2023 Forecast © Hitachi, Ltd. 2023. All rights reserved. 11

  13. Slide 13: Highlights of Forecast (FY2023)

    Highlights of Forecast (FY2023) • No change from the previous forecast • Hitachi Astemo is scheduled to become an equity method affiliate in September 2023 due to selling a part of the company shares • Thales GTS is included in the forecast for the second half of the year Continuing Deconsolidated T

  14. Slide 14: Highlights of Forecast (FY2023) by Segment

    Highlights of Forecast (FY2023) Previous forecast FY2023 Forecast YoY comparison Dynamics Billions of yen Revenues Adj. EBITA(1) Revenues Adj. EBITA Revenues Adj. EBITA Digital Systems & 2,450.0 308.0 +3% +14.2 ±0% ±0.0 • No change from the previous segment forecast Services 12.6% [+4%](2) +0.3 pts

  15. Slide 15: Factors Affecting Changes in Revenues and Adjusted EBITA (FY2023 Total)

    Factors Affecting Changes in Revenues and Adjusted EBITA (FY2023 Total) Revenues Billions of yen Adjusted EBITA Billions of yen • Changes in business scale • Selling price change • Impact of rising material prices • Structure reinforcement corresponding to demand increase, etc. © Hitachi, Ltd. 2023.

  16. Slide 16: Lumada Business

    Lumada Business Lumada business revenues(1) Lumada business ratio Lumada Non Lumada Lumada ratio Billions of yen c.15% Revenues Adjusted EBITA c.14% 2,280.0 26% 29% 513.0 38% 41% (YoY +30%) 1,960.0 (YoY +16%) 21% 396.0 270.0 7,638.2 7,820.0 26% 64.0 215.0 6,699.2 724.8 800.0 510.0 48.0 115.0 662.1 4

  17. Slide 17: 4. Appendix

    4. Appendix © Hitachi, Ltd. 2023. All rights reserved. 16

  18. Slide 18: Summary of Consolidated Statement of Profit or Loss

    Summary of Consolidated Statement of Profit or Loss Previous Q1 FY22 Q1 FY23 YoY FY22 FY23 YoY forecast Billions of yen comparison Revenues 2,569.8 2,322.4 (10)% 10,881.1 8,800.0 (19)% ±0% Adjusted Operating Income 121.5 130.5 +8.9 748.1 675.0 (73.1) ±0.0 Equity in earnings of +12.9 +19.8 +6.9 +52.8

  19. Slide 19: Revenues by Market (Q1 FY23)

    Revenues by Market (Q1 FY23) ASEAN, North Overseas Japan China India, other Europe Other areas America Revenues Billions of yen areas Digital Systems & Services 348.2 7.7 44.5 78.7 52.8 13.8 197.6 YoY +9% (28)% +11% +11% +6% +9% +7% Green Energy & Mobility 70.9 46.8 61.5 139.2 221.1 88.3 557.0 YoY +

  20. Slide 20: Orders Results by Business Segment (Q1 FY23)

    Orders Results by Business Segment (Q1 FY23) Billions of yen Q1 FY23 YoY Q1 FY23 YoY Digital Systems & Connective Industries 731.7 +11% 773.1 (1)% Services Front Business Building Systems 372.5 +17% 237.8 (14)% IT Services Smart Life & 254.9 +6% Ecofriendly Systems 88.3 +8% (Hitachi GLS(1)) Services

  21. Slide 21: Notes

    Notes *1 “Adjusted EBITA” is presented as Adjusted operating income plus acquisition-related amortization and equity in earnings (losses) of affiliates *2 “Core free cash flows” are cash flows presented as free cash flows excluding cash flows from M&A and asset sales, etc. *3 Figures for Hitachi Con

  22. 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

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