Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2015)

16 slides from Hitachi's investor day presentation, Jun 11, 2015

  1. Slide 1: Hitachi IR Day 2015 Summary

    Hitachi IR Day 2015 Summary Hitachi IR Day 2015 June 11, 2015 Toyoaki Nakamura Executive Vice President and Executive Officer, CFO Hitachi, Ltd. © Hitachi, Ltd. 2015. All rights reserved.

  2. Slide 2: Contents

    Hitachi IR Day 2015 Summary Contents 1. Progress of 2015 Mid-term Management Plan 2. Growth Strategy © Hitachi, Ltd. 2015. All rights reserved.

  3. Slide 3: Outline of 2015 Mid-term Management Plan

    1-1. Outline of 2015 Mid-term Management Plan Management Focus 2015 Mid-term Management Plan - Achieving Growth and Hitachi’s Transformation - Innovation Global Transformation Strengthen service Deliver Innovation to Transform Hitachi: businesses that Customers and To deliver innovation by maximize

  4. Slide 4: FY2014 Progress Overview and FY2015 Forecast

    1-2. FY2014 Progress Overview and FY2015 Forecast 2015 Mid-term Plan FY2013 Result FY2014 Result FY2015 Forecast Initial target (US GAAP) (US GAAP) (US GAAP) (US GAAP) (IFRS)*1 10,000.0 9,563.7 9,761.9 9,900.0 9.950.0 Revenues*1 billion yen billion yen billion yen billion yen billion yen (Operating

  5. Slide 5: Business Performance Trends

    1-3. Business Performance Trends (trillion yen) Revenues Operating 11.2 Revenues income Operating income ratio Net income 9.8 9.9 9.6 10 (billion yen) Profit Operating income is increasing at a rate of 8 more than 10% per year 6.7 6.2 660.0 7.1 600.4 6.5 600 5.6 6 501.1 506.4 538.2 400 4 347.1 330.0

  6. Slide 6: Progress of 2015 Mid-term Management Plan: Business Segments (1)

    1-4. Progress of 2015 Mid-term Management Plan Revenues, Operating Income and EBIT by Business Segment (1) Billions of yen FY2014 FY2015 Forecast In – house companies Result /subsidiaries which will be presented Year over US GAAP US GAAP IFRS*1 in Hitachi IR Day 2015*3 year Revenues 2,032.1 2,100.0

  7. Slide 7: Progress of 2015 Mid-term Management Plan: Business Segments (2)

    1-5. Progress of 2015 Mid-term Management Plan Revenues, Operating Income and EBIT by Business Segment (2)*1 Billions of yen FY2014 FY2015 Forecast In – house companies Result /subsidiaries which will be presented Year over US GAAP US GAAP IFRS*1 in Hitachi IR Day 2015*2 year Revenues 936.9 1,000.0

  8. Slide 8: Contents

    Hitachi IR Day 2015 Summary Contents 1. Progress of 2015 Mid-term Management Plan 2. Growth Strategy © Hitachi, Ltd. 2015. All rights reserved.

  9. Slide 9: Key Performance of Growth Strategy

    2-1. Key Performance of Growth Strategy FY2015 FY2015 Initial target*1 Forecast*1 Ratio of Ratio of 1 Global business expansion overseas revenues Over 50% overseas revenues 50% Ratio of Ratio of 2 Service business expansion service revenues Over 40% service revenues 38% Cumulative cost Cumulative co

  10. Slide 10: Growth strategy (1) Global business expansion

    2-2. Growth strategy (1) Global business expansion Global business is expanding steadily FY2012 FY2013 FY2014 FY2015 (Result) (Result) (Result) (Forecast) Overseas revenue ratio* Total 41% 45% 47% 50% Information & Telecommunication Systems 26% 30% 33% 36% Power Systems*1 36% 36% 11% 11% Infrastruct

  11. Slide 11: Growth strategy (2) Service business expansion

    2-3. Growth strategy (2) Service business expansion Service business of Hitachi Group is expanding FY2012 FY2013 FY2014 FY2015 (Result) (Result) (Result) (Forecast) Service revenues ratio* Total 30% 32% 35% 38% Information & Telecommunication Systems 60% 62% 64% Over 65% Power Systems*1 - 25% 36% 44

  12. Slide 12: Growth strategy (3) Hitachi Smart Transformation PJ: cost reductions

    Cost reductions through the 2-4. Growth strategy (3) Hitachi Smart Transformation PJ Accelerate measures for profitable strength (Unit: Billion) FY2011 FY2012 FY2013 FY2014 FY2015 cumulative Cost reductions effects* total vs (Result) (Result) (Result) (Result) (Forecast) FY2010 Total 35.0 75.0 110.0

  13. Slide 13: Growth strategy (3) Hitachi Smart Transformation PJ: CCC improvement

    Cost reductions through the 2-4. Growth strategy (3) Hitachi Smart Transformation PJ Cash generation for growth investments FY2012 FY2013 FY2014 FY2015 (Result) (Result) (Result) (Forecast) Total*3 79.2 days 81.3 days 81.5 days 76.5 days CCC* improvement* Information & Telecommunication Systems 68.1

  14. Slide 14: Serving the World with Our Social Innovation Business

    Serving the World with Our Social Innovation Business SOCIAL INNOVATION‐IT’S OUR FUTURE © Hitachi, Ltd. 2015. All rights reserved. 14

  15. Slide 15: 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

  16. Slide 16: © Hitachi, Ltd. 2015. All rights reserved.

    © Hitachi, Ltd. 2015. All rights reserved.

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