Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2015)

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

  1. Slide 1: Healthcare Business Strategy

    Healthcare Business Strategy Hitachi IR Day 2015 June 11, 2015 Masaya Watanabe Vice President and Executive Officer, President & CEO of Healthcare Group and Healthcare Company Hitachi, Ltd. © Hitachi, Ltd. 2015. All rights reserved.

  2. Slide 2: Contents

    Healthcare Business Strategy Contents 1. Business Overview 2. Vision 3. Growth Strategies 4. Global Development 5. Business Structure and Growth Investment 6. Conclusion © Hitachi, Ltd. 2015. All rights reserved.

  3. Slide 3: 1-1. Vision and Business Fields

    1-1. Vision and Business Fields To build a society in which everyone can live in good health, safety and secure Diagnostics & Clinical Testing & Reagents  Medical imaging Systems Specimen Analysis Devices (Ultrasound, MRI, others)  Particle Beam Therapy Systems Sample Transport Systems Informati

  4. Slide 4: 1-2. Business Overview

    1-2. Business Overview Global business development centered on three core domains FY2014 revenues 337.9 billion yen ●Revenues breakdown(based on US GAAP) By Diagnostics & Clinical Testing & Reagents Informatics business field 43％ 37％ 20％ Information & Hitachi Telecommuni By Healthcare Company High-T

  5. Slide 5: 1-3. 2015 Mid-term Management Plan progress

    1-3. 2015 Mid-term Management Plan progress FY2014 FY2015(Forecast) Year over FY2013 Year (US GAAP)*1 (US GAAP)*1 (US GAAP)*1 (US GAAP)*1 (IFRS)*2 +22.1 326.7 337.9 360.0 360.0 Revenues billion yen billion yen billion yen billion yen billion yen (107%) EBIT Ratio 5.2% 5.4% 7.2% 7.1% +1.8% (Operating

  6. Slide 6: 1-4. Main Progress in FY2014

    1-4. Main Progress in FY2014 Apr. 2014 Apr. 2015 Management • Made Hitachi Medical a wholly-owned Consolidated functions structure company of Hitachi Medical and • Established Healthcare Company Hitachi Aloka Medical (Integrating healthcare-related businesses) into Healthcare Company Globally expand

  7. Slide 7: Contents

    Healthcare Business Strategy Contents 1. Business Overview 2. Vision 3. Growth Strategies 4. Global Development 5. Business Structure and Growth Investment 6. Conclusion © Hitachi, Ltd. 2015. All rights reserved.

  8. Slide 8: 2-1. Healthcare Environment Trends

    2-1. Healthcare Environment Trends Change in the healthcare environment Advanced countries: Aging population and an increased incidence of chronic diseases Emerging countries: Regional inequality in the level of healthcare as a result of differences in economic growth Growth averaging 5% a year i

  9. Slide 9: 2-2. Hitachi's Healthcare Business Vision

    2-2. Hitachi’s Healthcare Business Vision Healthcare Innovation for an Efficient and Improved Quality of Healthcare Care cycle innovation Medical innovation Patients Prevention Screening Therapy Prognosis Government Medical & & & & & Care Checkup Diagnosis Treatment Elderly care Municipalities Provi

  10. Slide 10: 2-3. Target Position

    2-3. Target Position To be a globally-leading company realizing healthcare innovation, centered on core domains of “Diagnostics & Clinical” “Testing & Reagents” “Informatics” 25,000 2,500 Revenues(Billion yen) Company A 20,000 2,000 Company C Company B 15,000 1,500 10,000 1,000 Hitachi Company D 600

  11. Slide 11: Contents

    Healthcare Business Strategy Contents 1. Business Overview 2. Vision 3. Growth Strategies 4. Global Development 5. Business Structure and Growth Investment 6. Conclusion © Hitachi, Ltd. 2015. All rights reserved.

  12. Slide 12: 3-1. Overview of Growth Strategies

    3-1. Overview of Growth Strategies Status quo position Business strategy Diagnostics & Clinical Medical  Ultrasound: Focus efforts on global leading Imaging businesses Systems No. 1 market share in Japan  MRI:  Ultrasound: No. 1 global market Differentiation with open MRI share Particle Beam  Pa

  13. Slide 13: 3-2. Diagnostics & Clinical ①

    Healthcare 3-2. Diagnostics & Clinical ① Company  Expand business through co-creation with customers Revenues [Billion yen] and outstanding technology Strengthen and establish technology a global brand 146.6(FY2014) → 160.0(FY2015) Medical Imaging Systems To make Ultrasound business global No. 1 T

  14. Slide 14: 3-2. Diagnostics & Clinical ②

    Healthcare 3-2. Diagnostics & Clinical ② Company To make particle beam therapy business global No. 1 Scheduled to be up and running in FY2015 Hitachi’s competitive advantages Mayo Clinic St. Jude (Minnesota, Arizona) Children's Research ① Unrivaled technologies Hospital (Tennessee) • Spot-scanning r

  15. Slide 15: 3-3. Testing & Reagents

    Hitachi High-Technologies and 3-3. Testing & Reagents Healthcare Company  Expand the clinical chemistry and immunodiagnostic business and enter the bacterial and genetic testing market Revenues [Billion yen]  Strengthen development of innovative products  Promote collaboration with pharmaceutical

  16. Slide 16: 3-4. Informatics

    Information & Telecommunication Systems 3-4. Informatics Company and Healthcare Company  Expand business centered on analytics Revenues [Billion yen]  Co-create new services with customers 64.7 (FY2014) → 70.0 (FY2015) New services based on analytics Support for local comprehensive care of the eld

  17. Slide 17: 3-5. Care Cycle Innovation

    Healthcare Company, and 3-5. Care Cycle Innovation Information & Telecommunication Systems Company Concentrate on the priority therapy domains and create solutions supporting the care cycle Globally develop intelligent operating rooms Support cancer treatment plans with analytics  Surgery performed

  18. Slide 18: 3-6. Regenerative Medicine

    Healthcare Company, 3-6. Regenerative Medicine Infrastructure Systems Company, Hitachi High-Technologies, Others Provide cell cultivation solutions as the Hitachi Group The Hitachi Group’s businesses and technologies in regenerative medicine Hospitals Cell treatment facilities Cells Transport Clinic

  19. Slide 19: Contents

    Healthcare Business Strategy Contents 1. Business Overview 2. Vision 3. Growth Strategies 4. Global Development 5. Business Structure and Growth Investment 6. Conclusion © Hitachi, Ltd. 2015. All rights reserved.

  20. Slide 20: 4-1. Global Business Targets

    4-1. Global Business Targets Increase the overseas business in FY2015 by concentrating investments in North America, China and APAC Asia Asia Pacific, Pacific, China others China others 9% 6% 9% 6% Japan Japan Japan 33% Overseas 38% Overseas 39% Overseas revenue revenue revenue Europe ratio Europe r

  21. Slide 21: 4-2. Global Business Approach

    4-2. Global Business Approach Respond to local healthcare needs with the three healthcare-related Group companies collaborating with the four global regions • Global development based on an autonomous decentralized global management • Market-in approaches matching local needs Customers Group company

  22. Slide 22: 4-3. Development of Medical Innovation

    4-3. Development of Medical Innovation Develop medical innovation in China, India and other countries based on Hitachi’s track record in Japan Hitachi’s total solutions China Accelerated privatization of public Market Engineering Service lineup hospitals as a national policy Solutions improving • Ma

  23. Slide 23: Contents

    Healthcare Business Strategy Contents 1. Business Overview 2. Vision 3. Growth Strategies 4. Global Development 5. Business Structure and Growth Investment 6. Conclusion © Hitachi, Ltd. 2015. All rights reserved.

  24. Slide 24: 5-1. Measures taken for the 2015 Mid-term Management Plan

    5-1. Measures taken for the 2015 Mid-term Management Plan Revenues 326.7 337.9 360.0 (Billion yen) HSTP Lower sales benefits prices Business +2.1 Expansion (0.6) +5.1 26.0 Operating Income 20.7 19.4 (Billion yen) FY2013 FY2014 FY2015 Business Expansion HSTP Benefits （For Healthcare Company）  FY2013

  25. Slide 25: 5-2. Growth Strategy for FY2018

    5-2. Growth Strategy for FY2018 FY2014(US GAAP) Growth Strategy Revenues 337.9  Create cash with enhancement of management practices (Billion yen)  Integrate management system centered by the Healthcare Overseas Company 62％ revenue ratio  Continue HSTP approach Service 23％  Strategic R&D investm

  26. Slide 26: Contents

    Healthcare Business Strategy Contents 1. Business Overview 2. Vision 3. Growth Strategies 4. Global Development 5. Business Structure and Growth Investment 6. Conclusion © Hitachi, Ltd. 2015. All rights reserved.

  27. Slide 27: 6-1. Business Performance Trends

    6-1. Business Performance Trends Service revenue ratio 21% 23% 23% 23% Overseas revenue ratio 57% 62% 61% 61% Revenues Operating Income (Billion yen) (Billion yen) 500 100 400 337.9 360.0 360.0 326.7 300 50 7.2% 7.2% 6.3% 7.1% 7.1% 200 5.7% 100 5.2% 5.4% 26.0 26.0 20.7 17.1 19.4 18.5 25.6 25.6 0 0 F

  28. Slide 28: 6-2. Conclusion

    6-2. Conclusion FY2015 Targets US GAAP*1 IFRS*2 Revenues 360 billion yen 360 billion yen Overseas revenue ratio 61% 61% Operating income ratio*3/ EBIT ratio 7% 7% FY2018 Targets IFRS*2 Revenues 600 billion yen Overseas revenue ratio 67% Adjusted operating 10% income ratio/ EBIT ratio *1 Managerial a

  29. Slide 29: 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

  30. Slide 30: © Hitachi, Ltd. 2015. All rights reserved.

    © Hitachi, Ltd. 2015. All rights reserved.

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