Hitachi, Ltd. · TSE:6501
Hitachi — Investor Presentation (March 2010)
40 slides from Hitachi's investor presentation, Mar 29, 2010
Slide 1: Presentation of Strategies for Railway Systems Business
Presentation of Strategies for Railway Systems Business St t i ffor R Strategies Railway il S Systems t B i Business -- Accelerate Globalizatio on with Technologies Developed in Japan -- Gaku Suzuki President & CEO O, Industrial & Soccial Infrastructure Systems Company Vice President and a Executive
Slide 2: Strategies for Railway Systems Business
Strategies for Railway Systems Bussiness Accelerate Globalization with Technologies Developed in Japan 1 Overview 1. O i . 2. Strategies 3 Domestic Business 3. 4. Overseas Business 5 Conclusion 5. © Hitachi, Ltd. 2010. All rights reserved.
Slide 3: Overview: Railway Systems Business in Hitachi
1. Overview Railway Systems Business B in Hitachi SEGMENT IN NFORMATION Financial Service (millions of yen) Revenues ¥412,040 Operating Income ¥10,210 Information & Telecommunication Systems Logistics, Services & Others Revenues ¥2,594,450 Revenues ¥1 089 971 ¥1,089,971 Operating Income ¥176,629 Ope
Slide 4: Organization
1. Overview Organizzation Industrial & Social Infrastructure Systems Company Information & Control Systems Company Transportation Systems Div. Transportation Information Systems Div. Kasado Transportation Systems Product Div. 〔Traffic/power management system, 〔Rolling Stock〕 Business support systems
Slide 5: Offices and Factories in Japan
1. Overview Offices and Factories F in Japan Kasado Transportation Systems Product Div. Hitachi Works Main motor ＩＧＢＴ module Kokubu Engineering & Product Div. Rolling Stocks (Kudamatsu-shi, Yamaguchi-ken) Power supply systems Transportation Information Systems Div. Traffic/power management systems t
Slide 6: Overseas Subsidiaries and Partners
1.Overview Overseas Subsid diaries and Partners ●Hitachi Rail Europe Ltd. / UK ●Hitachi Yonge Electric Equipment (Xi’an) Co., Ltd./China (Sales & Marketing, engineering, and (Manufacture of electrical component) maintenance service) Established in 2005 Established in 2003 A hf d D Ashford Depot ●：Su
Slide 7: Products and Service ①
1. Overview Products an nd Service ① Rolling Stocck Systems Rolling Stocks/Overseas main ntenance Electrical components High speed train Limited express train Commuter train M Monorail Overseas maintenance Main circuit/Main motor Air-conditioning /Air-moving system Transport Managemen nt & Control S
Slide 8: Products and Service ②: Efforts as total railway systems integrator
1. Overview Products an nd Service ② Efforts as total railwa ay systems integrator High-efficiency rolling stock High Aluminum trains (A-train) (A train) systems t ffor th the acceleration l ti n off efficiency modal shift High-speed train Environment Rolling stock systems to further Small and light
Slide 9: Strategies: Accelerate Globalization with Technologies Developed in Japan
2. Strategiees Accelerate Globalization with Teechnologies Developed in Japan Target Strategies Sustainable growth in Japan Revenue: ¥350 billion ■ Focus on new Shinkansen lines Overseas revenue: over 60% ■ Expand aluminum trains sales to municipal Operating income: 8% and private railway companies
Slide 10: Rolling Stock Systems: Delivery Record
3. Domestic Business (1) Rolling Stock Systtems: Delivery Record Share of rolling stocks:23% Sha are of electrical components :30% * Share percentages are Hitachi estimates C Conventional ti l lilines Shinkansen Hokkaido Railway Co. Series 785 limited express train East Japan Railway Co. East Japan
Slide 11: Monorail: Major Delivery Records
3. Domestic Business (1) Rolling Stock Systems Monorail : Majo or Delivery Records Straddle-type mon norail (No.1 share) Osaka Monorail Co.,Ltd. Tokyo Monorail Co.,Ltd １９９０～ １９６４～ Kitakyushu Urban Monorail Co.,Ltd Tokyo Tama Intercity １９８５～ Monorail Co.,Ltd. , １９９８～ Yomiuri Land Monorail １９６４～１９７８ I
Slide 12: Aluminum Train Technology
3. Domestic Business (1) Rolling Stock Systems Aluminum Train Technology A-train: A highly economical neext-generation train technology Delivery: About 1,700 trains Module Assembly Lightweight and easy-to-recycle compared with steel Overhead rack/ducts module Pow １００ wer consumption ８０ Side Ceiling
Slide 13: Inverter Technology
3. Domestic Business (1) Rolling Stock Systems Inverter Teechnology Small, lightweight and low-n noise (world-class) inverters New e Product oduc Remarks More reliable system with smaller and lighter features reducing the number of parts Exterior Easier Maintenance with unit-type built-in components
Slide 14: Hybrid Traction Technology
3. Domestic Business (1) Rolling Stock Systems Hybrid Tracction Technology Hybrid traction system for Ki-Ha E200 Series Energy-saving system for railways with liithium-ion secondary batteries (Joint development with East Japan Railw way Company) Regenerative en nergy stored in the storage battery Li
Slide 15: Transport Management & Control Systems: Delivery Records
3. Domestic Business (2) Transport Manag gement & Control Systems: Delivery Recordss Contributed to innovations of railway y system with information technology 1960 1964 1970 1980 1990 2000 (Year) Tokaido Shinkansen: Tokyo – Shin-Osaka started s operation (1964) Sanyo Shinkansen: Shin-O Osaka - Okay
Slide 16: Business Support Systems: Delivery Record
3. Domestic Business (2) Transport Management Business Support Systems: Delivery Record & Control Systems Seat Reservation n System (MARS) Railway Information System Co., Ltd. providees Multi-Access Reservation System with high reliability, r and high g response p supporting pp g various custom mer
Slide 17: Signaling/Traffic Management Systems: JR railway companies
3. Domestic Business (2) Transport Management Signaling/Traffic Ma anagement Systems: & Control Systems Delivery Record ① JR railway companies Digital ATC (Signaling) Traffic Management Systems 旭川 ◎ Hakodate lin ne Share ６０％ 小樽 ◎ 札幌 ◎ Share ８１％ Chitose/Muroran line ・ Shinkansen lines ◎ 室蘭 ・ Tokyo Ar
Slide 18: Signaling/Traffic Management Systems: Municipal and private railways
3. Domestic Business (2) Transport Management Signaling/Traffic Ma anagement Systems: & Control Systems Delivery Record ② Municipal and private railway companies Municipal Railway Companies Private Railway Companies Share ６２％ Share ２８％ Main line Nankai Electric Railway Toho line Sapporo City Main li
Slide 19: Digital ATC Technology
3. Domestic Business (2) Transport Management & Control Systems Digital AT TC Technology Digital ATC system supportin ng safe and stable transport Conventional ATC Heaadway reduction by single-step single step braking control and opttimum braking control matched to train specification cha aracterist
Slide 20: Traffic Management Systems Technology
3. Domestic Business (2) Transport Management Traffic Management Systems Technology & Control Systems Autonomous decentralized Transport Operation Autonomous decentralized system technology control System (ATOS) ●Autonomous decentralized systems ■ World's Largest Real-time Control System Jinbohara K
Slide 21: Domestic Business Strategies ①
3. Domestic Business Strategies ① Focus on new Shinkansen line (Rolling stocks/Signaling/Train s control system) 【Opening Schedule】 Hokkaido Shinkansen Shin-Aomori～Shin-Hakod Shin Aomori～Shin Hakoddate 2015 Tohoku Shinkansen Hachinohe～Shin-Aomori 2010 Hokuriku Shinkansen Nagano～Kanazawa 2014 Kyushu
Slide 22: Domestic Business Strategies ②
3. Domestic Business Strategies ② Business Support Systems: Keep currrent position and further expansion ■Keep share of seat reservation systems ■Increase share of IC Card Ticketing Systemss and Railway Operation Information Systems ■Firmly extend and update transport planning g and operations plann
Slide 23: Overseas Business: Accelerate Globalization
４. Overseas Businesss Accelerate Globalization with Teechnologies Developed in Japan Target Strategies Revenue: ¥350 billion Expand overseas business Strengthen partnerships in Japan and Overseas revenue: over 60% overseas Operating income: 8% ■Focus on high-speed trains market (China, UK, Brazil, U
Slide 24: Global Market
4. Overseas Business Global Marrket 2005-07 ¥11 trillion -> 2014--16 ¥14 trillion (CAGR: 2.6%) High growth in service and signaling/ /control Huge market in Europe Increase investments in emerging countries ●Market size by segment Others ¥14 trillion 16% 1.63 3.0 0% Signaling/ Si li / 11 trillion ¥1
Slide 25: Major Delivery Record
4. Overseas Business Major Delivery Record UK UK Bulgaria China China Class 395 Electrical components for Electrical components for Electrical components for Electrical components high speed train Class 465 commuter train Sofia metro train high speed train for Beijing metro ● ● China UAE ● ● Electri
Slide 26: Strategies by Region
4. Overseas Business Strategies by Region Focus on UK, China, High-speed Railways andd Monorail Projects （１） UK High-speed railwaays with maintenance services business Signaling/train g g/ control systems y business （２） China Electrical compon nents for high-speed railways Si Signaling/train li /t i
Slide 27: UK: History
4. Overseas Business （１） UK: History H Took 10 years for market m entry with acquiring certificate １９９９ Railway systemss manager stationed in London ２０００ First tender partticipation ２００３ Started trial operations of V-Train with Hitachi’ss electriccal components Hitachi Trial completed with no accide
Slide 28: UK Delivery Record
4. Overseas Business （１）UK Deliveryy Record Delivery of Class 395 trains an nd launch maintenance service Contract： 174 cars (29 trains: 6 cars per trains) of C Class 395 trains : ¥50.0 ¥50 0 billion 7 years Train maintenance (maximum 35 years): y ¥20.0 billion (maximum ¥100.0 billion) Railcar deliv
Slide 29: UK Strategies ①
4. Overseas Business （１）UK Strategies ① Rolling stock with mainttenance service business In February 2009, Selected as preferred bidder b for Intercity Express Programme (IEP) ■Project Overview High speed trains (HST) replacement package (Rolling Stocks, maintenance and finance) - No. of cars to be
Slide 30: UK Strategies ②
4. Overseas Business （１）UK Strategiees ② Electrical component c Retrofit electrical components for Class 465 trains ■ Contract in 2007: To complete delivery in April 2010 0 ■ Contract details: 196 sets (94 trains), maintenance services s (for 10 years) March, 2010) ■ Without accident for 2.8 million
Slide 31: China: Market
4. Overseas Business （２） China: Market World biggest railwa ay systems market ：Entire plan of high-speed line (4 east-west and 4 north-south lines) : High-speed lines already in operation Harbin (as of February 2010) ：Region upgrading inter-city transport Qinhuangdao Shenyang High-speed railways Bei
Slide 32: China Delivery Record
4. Overseas Business （２）China Delivery y Record Electrical component Signaling/Train control system High-speed railways High-speed railways ■CRH2 rolling lli stocks t k andd electrical l t i l components t for f Ministry Mi i t ■Chinese Train ■Chi T i control t l systems t (CTCS2) ffor Mi Ministry i
Slide 33: China Strategies ①
4. Overseas Business （２）China Strategies ① Electrical component Signaling/Train control system High-speed railways High-speed railways ■ Awarded contract: ■ Chinese Train control systems (CTCS3) for Ministry of CRH3 (380km/h, for 400 cars) from China North Railways Locomotive & Rolling Stocks Awarde
Slide 34: China Strategies ②
4. Overseas Business （２）China Strategies ② Expansion of local production andd capacity of electrical component I Increase capacity it tto 130 sets t per month th ((after ft 2011) Hitachi Yonge g Electric Equipment q p (X (Xi'an)) Co.,, Ltd. ■ Established ： August 2003 ■ Location ： Xian, China ■ Capi
Slide 35: New Markets: The Americas
4. Overseas Business （３） New Markets： The Americas Sao Paulo monoraill ■ Bidding process in conjuncttion with local construction companies ■ Number of cars: 324 (Tiraddentes line) ; 84 (Congonhas line) *There are some monorail prrojects in other cities (Manaus, Rio de Janeiro) Brazil high-speed ra a
Slide 36: New Markets: Emerging Market
4. Overseas Business （３） New Markets Emerrging Market Entry to Indian ma arkets ■ Train control systemss ・ Dedicated Freight West W Corridor (Project to be financced by yen loan; bidding scheduled in 2011) - Distance for yen loan: 1,468 km - Size of yen loan: ¥450 billion ■ Electrical componentss ・
Slide 37: Continuing Market: Australia and South Korea
4. Overseas Business （４） Continuing Markeet Australia ■ Awarded contract for electtrical components for “double-decker” commuter trains in suburbs of Sydney (in 2006, scheduled to start operation in late 2010) ・ Contract details: 312 setss (78 trains) In collaboration with Dow wner EDI Rail ■ Target
Slide 38: Summary: Target in FY2015
５．Sum mmary Target in FY2015 Revenue : ¥350 billion Overseas revenuue : over 60% Operating incom me : 8% Accelerate Globalization with Technologies Developed in Japan © Hitachi, Ltd. 2010. All rights reserved. 37
Slide 39: Cautionary Statement
Cautionary Sta atement 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 fina an
Slide 40: HITACHI Inspire the Next
HITACHI Inspire the Next