Hitachi, Ltd. · TSE:6501

Hitachi — Hitachi Ltd Ord — Q3 2024 Earnings Presentation

25 slides from Hitachi's earnings presentation, Jan 31, 2025

  1. Slide 1: Outline of Consolidated Financial Results for the Third Quarter Ended December 31, 2024

    Outline of Consolidated Financial Results for the Third Quarter Ended December 31, 2024 [Fiscal 2024] January 31, 2025 Tomomi Kato Senior Vice President and Executive Officer, CFO Hitachi, Ltd. © Hitachi, Ltd. 2025. All rights reserved.

  2. Slide 2: Contents

    Contents 1. Key Messages 2. Q3 FY2024 Results 3. FY2024 Forecasts 4. Performance by Business Segment 5. Appendices © Hitachi, Ltd. 2025. All rights reserved. 1

  3. Slide 3: 1. Key Messages

    1. Key Messages © Hitachi, Ltd. 2025. All rights reserved. 2

  4. Slide 4: Key Messages

    Key Messages Revenues and profits increased in Three Sectors. GEM performed well with renewal demand for Q3 FY24 power grid facilities, as well as renewable energy projects, while DSS benefited from the tailwind Results of DX/modernization in the Japanese IT market. CI achieved solid performance in

  5. Slide 5: Key Messages

    Key Messages ✓ DSS and GEM are expected to achieve strong growth due to the tailwind of DX/GX. CI is expected to achieve solid performance. Almost all KPIs of the Mid-term Management Plan 2024 are expected to be achieved(*) ✓ Net Income and Core FCF are expected to achieve significant growth compare

  6. Slide 6: 2. Q3 FY2024 Results

    2. Q3 FY2024 Results © Hitachi, Ltd. 2025. All rights reserved. 5

  7. Slide 7: Highlights of Results (Q3 FY24)

    Highlights of Results (Q3 FY24) • Three Sectors achieved revenue growth (YoY +16%) and Adj. EBITA increase (YoY: +74.2 billion yen, +34%), leading to improved profitability CI achieved solid performance in both domestic and overseas business • Core FCF increased YoY due to advances received for larg

  8. Slide 8: Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (Q3 FY24)

    Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (Q3 FY24 Consolidated Total) Revenues Billions of yen +208.2 2,465.2 2,258.0 +93.1 ＋ 35.0 (129.1) ⊕ Hitachi Energy ⊕ IT services (Digital Systems & Services) ⊕ Front Business (Digital Systems & Services) Q3 FY23 Hitachi Astemo Acqui

  9. Slide 9: Financial Position and Cash Flows

    Financial Position and Cash Flows Summary of Consolidated Financial Position As of As of Difference from Billions of yen March 31, 2024 December 31, 2024 March 31, 2024 Total assets 12,221.2 13,666.6 +1,445.3 Cash and cash equivalents 705.3 1,009.2 +303.9 Trade receivables and contract assets 2,991.

  10. Slide 10: Regional revenues (Q3 FY24)

    Regional revenues (Q3 FY24) ASEAN, India, North Overseas Japan Europe China other areas Other areas America revenues Billions of yen Digital Systems & 464.1 93.8 62.8 8.0 52.8 15.0 232.6 Services YoY +14% +7% (3)% (10)% +13% +10% +5% Green Energy & 92.8 203.2 384.8 58.9 83.2 169.0 899.3 Mobility YoY

  11. Slide 11: Orders Results by Business Segment (Q3/Q1-Q3 FY24)

    Orders Results by Business Segment (Q3/Q1-Q3 FY24) Q1-Q3 Q1-Q3 Q3 FY24 YoY YoY Q3 FY24 YoY YoY Billions of yen FY24 FY24 Digital Systems & Services Connective Industries 689.0 +4% 2,211.1 +7% 753.6 +4% 2,273.3 ±0% Front Business(*) Building Systems 266.1 (6)% 972.7 +5% 201.1 (6)% 641.3 (8)% IT Servi

  12. Slide 12: 3. FY2024 Forecasts

    3. FY2024 Forecasts © Hitachi, Ltd. 2025. All rights reserved. 11

  13. Slide 13: Highlights of Forecasts (FY24)

    Highlights of Forecasts (FY24) • Three Sectors was revised upward by 550.0 bn yen in revenues, 57.0 bn yen in Adj. EBITA, and 130.0 bn yen in Core FCF (Consolidated Total) • The Core FCF/Net Income conversion rate is expected to reach 100% due to advances received from large projects, etc • Almost a

  14. Slide 14: Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (FY24)

    Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (FY24 Consolidated Total) Revenues Billions of yen 9,728.7 +689.4 9,700.0 +276.2 +170.0 (1,164.3) ⊕ Hitachi Energy ⊕ Front Business (Digital Systems & Services) ⊕ IT services (Digital Systems & Services) FY23 Hitachi Astemo Acquisit

  15. Slide 15: 4. Performance by Business Segment

    4. Performance by Business Segment © Hitachi, Ltd. 2025. All rights reserved. 14

  16. Slide 16: Performance by Business Segment (DSS)

    Performance by Business Segment (DSS) Q3 FY24 YoY FY24 Forecasts YoY vs Previous Forecasts Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Digital Systems 696.7 97.1 +10% +10.1 2,850.0 380.0 +10% +46.5 +2% +2.0 & Services 13.9% [+9%

  17. Slide 17: Performance by Business Segment (GEM)

    Performance by Business Segment (GEM) Q3 FY24 YoY FY24 Forecasts YoY vs Previous Forecasts Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Green Energy 992.1 93.5 +27% +46.2 3,770.0 340.0 +24% +140.8 +4% +25.0 & Mobility 9.4% [+24%]

  18. Slide 18: Performance by Business Segment (CI)

    Performance by Business Segment (CI) Q3 FY24 YoY FY24 Forecasts YoY vs Previous Forecasts Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Connective Industries 805.7 100.7 +9% +22.0 3,150.0 361.0 +3% +40.3 ±0% ±0.0 12.5% [+7%](*) +1

  19. Slide 19: Lumada Business

    Lumada Business Lumada business revenues(*) c.16% Lumada business ratio Billions of yen (*) Excluding Hitachi Astemo c.15% 2,860.0 Revenues 30% Adj. EBITA 40% 740.0 (YoY +23%) 27% (YoY +30%) 2,334.0 39% 330.0 26% 1,107.0 9,700.0 38% 85.0 8,564.3 867.4 568.0 284.0 670.0 7,638.2 72.0 177.0 724.8 553.0

  20. Slide 20: 5. Appendix

    5. Appendix © Hitachi, Ltd. 2025. All rights reserved. 19

  21. Slide 21: Performance by Business Segment (Consolidated Total)

    Performance by Business Segment (Consolidated Total) vs Previous Q3 FY24 YoY Q1-Q3 FY24 YoY FY24 Forecasts YoY Forecasts Reven Adj. Reven Adj. Reven Adj. Reven Adj. Reven Adj. Reven Adj. Reven Adj. Billions of yen ues EBITA ues EBITA ues EBITA ues EBITA ues EBITA ues EBITA ues EBITA Digital 696.7 97

  22. Slide 22: Summary of Consolidated Statement of Profit & Loss

    Summary of Consolidated Statement of Profit & Loss Q1-Q3 Q1-Q3 vs Previous Q3 FY23 Q3 FY24 YoY YoY FY23 FY24 YoY Billions of yen FY23 FY24 Forecasts Revenues 2,258.0 2,465.2 +9% 7,218.1 7,011.2 (3)% 9,728.7 9,700.0 ±0% +6% Adj. Operating Income 200.2 250.1 +49.9 525.7 654.9 +129.2 755.8 930.0 +174.1

  23. Slide 23: Notes

    Notes Items Contents Three sectors Consolidated Total less equity in earnings of Hitachi Astemo as an affiliated company and consolidated figures of Hitachi (excl. Hitachi Astemo) Astemo prior to be accounted for using the equity method, includes "Others" and "Corporate items & Eliminations" DSS / G

  24. Slide 24: 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

  25. Slide 25: Hitachi Social Innovation is POWERING GOOD

    i Hitachi Social Innovation is 2 POWERING GOOD « . e . . ee @eer*,

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