Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2015)

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

  1. Slide 1: Urban Planning and Development Systems Business Strategy

    Urban Planning and Development Systems Business Strategy Hitachi IR Day 2015 June 11, 2015 Hiroshi Sato Senior Vice President and Executive Officer President & CEO Urban Planning and Development Systems Company Power & Infrastructure Systems Group Hitachi, Ltd. © Hitachi, Ltd. 2015. All rights reser

  2. Slide 2: Contents

    Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Market Trends and Growth Targets 3. Business Policy and Growth Strategy 4. Conclusion © Hitachi, Ltd. 2015. All rights reserved.

  3. Slide 3: 1-1. Business Profile

    1-1. Business Profile Elevator and escalator Building-related services, etc.(12%) Business(88%) ① Comprehensive building management ① Manufacture, sales and installation ② Facility maintenance ② Maintenance ③ Security ③ Modernization FY2014 Consolidated Revenues 619.3 billion yen* Strengthen the bus

  4. Slide 4: 1-2. Value Chain

    1-2. Value Chain Achieve steady growth through a cyclic value chain  The elevator and escalator business has a cyclic value chain that is synchronized with the businesses of urban developers as well as building owners and users. Urban Planning and Development Sales Development Systems Company Proje

  5. Slide 5: 1-3. Capturing More Group Synergies

    1-3. Capturing More Group Synergies Collaboration on real estate services Energy and facility-related collaboration Hitachi Urban Investment Hitachi Industrial Equipment Systems Infrastructure Systems Company ① Develop a common platform on ① Collaborative creation with respect to ① Sharing of custom

  6. Slide 6: Contents: Market Trends and Growth Targets

    Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Market Trends and Growth Targets 3. Business Policy and Growth Strategy 4. Conclusion © Hitachi, Ltd. 2015. All rights reserved.

  7. Slide 7: 2-1. Elevator Business: New Installation Market Trends

    New Installation Market Trends in the Global Escalator and 2-1. Elevator Business Global demand driven by China and other parts of Asia, and the Middle East region (Thousand units, Hitachi estimates) 0.0 8.4 : CAGR(%) 535 21 21 455 FY2013 FY2015 Japan 5.4 9.2 36 40 FY2013 FY2015 852 Global 31 37 754

  8. Slide 8: 2-2. Positioning and Growth Targets

    2-2. Positioning (Elevators and Escalators) and Growth Targets Become a global major player through growing sales and improving profitability (Result) : FY2012 - FY2014 (Target) : FY2015 - FY2018 Hitachi (Result) (CAGR for the past (Target) Sales growth rate Japanese company E 10% Overseas company B

  9. Slide 9: Contents: Business Policy and Growth Strategy

    Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Market Trends and Growth Targets 3. Business Policy and Growth Strategy 4. Conclusion © Hitachi, Ltd. 2015. All rights reserved.

  10. Slide 10: 3-1. FY2015 Performance Forecasts

    3-1. FY2015 Performance Forecasts On track to achieve the targets of the 2015 Mid-Term Management Plan based on continuous improvement in revenues and profitability *1 Services 45% 37% 33% 33% revenue ratio Overseas 41% 52% 57% 59% revenue ratio Revenues [653.0] [66.0] Operating (Billion yen) [622.8

  11. Slide 11: 3-2. Differences from Previous Forecast

    3-2. Differences from Previous Forecast Result Difference from Previous forecast*1 /Revised forecast previous forecast*2 FY2014 FY2015 YoY FY2014 FY2015 YoY FY2014 FY2015 Revenues (Billion yen) 590.0 610.0 +20 619.3 653.0 +33.7 +29.3 +43.0 Operating income 52.6 Over 61.0 +8.4 59.2 65.0 +5.8 +6.6 +4.

  12. Slide 12: 3-3. Basic Policies

    3-3. Basic Policies 1.Intensively allocate  Intensively allocate business resources in key markets investment and  Strengthen cash flow management in mature markets resources  Establish business base alongside Japan and China 2.Strengthen Asian and  Expand business in India, that is a growing ma

  13. Slide 13: 3-4. Expand global footprint, strengthen mother factory functions

    3-4. Expand global footprint Strengthen mother factory functions Establish a value chain as a basis for business strategy Personnel Research ･ Design ･ Physical assets Sales Installation Maintenance Modernization Development Manufacture Technologies Tianjin Japan Shanghai Strengthen the value Kuwait

  14. Slide 14: 3-5. Regional business strategy

    3-5. Regional business strategy Region Sales strategy Product and service business strategy 1. Maintain the No.1 position in China 2. Expand the maintenance business ① Establish an integrated four areas management ① Develop and launch new models China system ② Improve the maintenance contract rate b

  15. Slide 15: 3-6. Maintain the No.1 position in China

    China Strategy 3-6. Maintain the No.1 position in China Drive expansion across all aspects of business, from new installations to maintenance services ① Establish an integrated four area management ② Increase sales and service bases system  Strengthen regional sales capabilities  Deliver detailed

  16. Slide 16: 3-7. Growth strategy in Asia and Middle East

    Growth strategy in Asia and Middle East 3-7. Based on market characteristics Market Business strategy Key countries Expand new installation sales by increasing Growing market the number of bases Thailand, Myanmar, Vietnam, India, UAE etc. Improve operating efficiency of maintenance and Mature market

  17. Slide 17: 3-8. Japan Strategy

    3-8. Japan Strategy Establish a business framework that is able to respond to market changes Optimally allocate resources in response to modernization and large-scale redevelopment ① Expand the modernization business ② Strengthen ability to respond to large-scale  Strengthen construction capacity b

  18. Slide 18: 3-9. Product Strategy

    3-9. Product Strategy Promote standardization and the creation of business through the use of IT Global product development ① Apply technology for developing the world’s fastest elevators (1,200m/min.) to other models  Drive and control technology : High-power drive equipment, high-strength rope 

  19. Slide 19: 3-10. Promote Hitachi Smart Transformation Project

    3-10. Promote Hitachi Smart Transformation Project Global cost structure reforms (improve the cost structure by promoting global standardization and common use)  Improve production efficiency by centralizing Improvement point Gross margin Production production of common components 1 costs  Expand

  20. Slide 20: Contents: Conclusion

    Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Market Trends and Growth Targets 3. Business Policy and Growth Strategy 4. Conclusion © Hitachi, Ltd. 2015. All rights reserved.

  21. Slide 21: 4. Conclusion: FY2015 Targets

    4. Conclusion FY2015 Targets Item US GAAP IFRS Revenues 653Billion yen 653Billion yen Overseas revenue ratio 59% 59% Operating income ratio* 10.0% 10.1% EBIT ratio 10.0% 10.1% Hitachi Smart  Gross margin: 1.0 point improvement (vs. FY2013) Transformation Project  SG&A expense ratio: 0.7 point impr

  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

  23. Slide 23: © Hitachi, Ltd. 2015. All rights reserved.

    © Hitachi, Ltd. 2015. All rights reserved.

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