Hitachi, Ltd. · TSE:6501

Hitachi — Hitachi Ltd Ord — Q3 2023 Earnings Presentation

25 slides from Hitachi's earnings presentation, Jan 31, 2024

  1. Slide 1: Outline of Consolidated Financial Results for the Third Quarter Ended December 31, 2023

    Outline of Consolidated Financial Results for the Third Quarter Ended December 31, 2023 [Fiscal 2023] January 31, 2024 Yoshihiko Kawamura Executive Vice President and Executive Officer, CFO Hitachi, Ltd. © Hitachi, Ltd. 2024. All rights reserved.

  2. Slide 2: Contents

    Contents 1. Key Messages 2. Q3 FY2023 Results 3. FY2023 Forecast 4. Appendix © Hitachi, Ltd. 2024. All rights reserved. 1

  3. Slide 3: 1. Key Messages

    1. Key Messages © Hitachi, Ltd. 2024. All rights reserved. 2

  4. Slide 4: Key Messages

    Key Messages Revenues: 2,128.9bn yen (YoY +11%) Q3 1 Results Adj. EBITA: 221.8bn yen (YoY +34.1bn yen) Three Revenues: 6,053.7bn yen (YoY +12%) sectors(a) Q1-Q3 Adj. EBITA: 581.5bn yen (YoY +83.4bn yen) Three sectors forecast was revised upward Revenues: 8,285.6bn yen (+4% from previous forecast(b))

  5. Slide 5: 2. Q3 FY2023 Results

    2. Q3 FY2023 Results © Hitachi, Ltd. 2024. All rights reserved. 4

  6. Slide 6: Highlights of Results (Q3 FY23)

    Highlights of Results (Q3 FY23) • Three sectors(a) grew revenues (YoY +11%) and increased Adj. EBITA (YoY +34.1bn yen, +18%) in organic • Core FCF increased in YoY due to enhancement of cash flow management and an increase in advances received and other gains in Hitachi Energy, despite the restructu

  7. Slide 7: Q3 FY23 Results by Business Segment (1/3)

    Q3 FY23 Results by Business Segment (1/3) Q3 FY23 YoY Dynamics Billions of yen Revenues Adj. EBITA(a) Revenues Adj. EBITA Digital Systems & 630.7 87.0 +9% +16.1 • Segment revenues and profits increased Services 13.8% [+7%] (b) +1.5 pts • Front Business revenues and profits increased due to dealing F

  8. Slide 8: Q3 FY23 Results by Business Segment (2/3)

    Q3 FY23 Results by Business Segment (2/3) Q3 FY23 YoY Dynamics Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Connective 740.0 78.6 ±0% +0.4 • Segment revenues and profits were flat, with revenues and Industries 10.6% [(2)%](a) +0.1 pts profits decreased in Measurement & Analysis Systems (H

  9. Slide 9: Q3 FY23 Results by Business Segment (3/3)

    Q3 FY23 Results by Business Segment (3/3) Q3 FY23 YoY Dynamics Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Hitachi Astemo 129.1 9.4 (74)% (18.6) • Due to conversion to an equity-method affiliate, included in 7.3% [(75)%] (a) +1.6 pts consolidated total until October FY23 Hitachi Construc

  10. Slide 10: Factors Affecting Changes in Revenues and Adjusted EBITA (Q3 FY23 Total)

    Factors Affecting Changes in Revenues and Adjusted EBITA (Q3 FY23 Total) Revenues Billions of yen Q3 FY22 Q3 FY23 \142/US$ \148/US$ \144/€ \159/€ ⊕ Hitachi Energy ⊕ Front Business (Digital Systems & Services) ⊕ IT Services (Digital Systems & Services) Adjusted EBITA Billions of yen ⊕ Changes in busi

  11. Slide 11: 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, 2023 December 31, 2023 March 31, 2023 Total assets 12,501.4 12,073.2 (428.2) Cash and cash equivalents 833.2 864.3 +31.0 Trade receivables and contract assets 2,874.9 2,

  12. Slide 12: Lumada Business

    Lumada Business Lumada business revenues(a) Lumada business ratio Lumada Non Lumada Lumada ratio Billions of yen c.15% Revenues Adj. EBITA c.14% 26% 28% 41% 2,330.0 38% 568.0 (YoY +19%) 21% 8,285.6 (YoY +19%) 7,638.2 26% 1,960.0 270.0 829.3 476.0 72.0 6,699.2 724.8 215.0 550.0 662.1 57.0 141.0 466.0

  13. Slide 13: 3. FY2023 Forecast

    3. FY2023 Forecast © Hitachi, Ltd. 2024. All rights reserved. 12

  14. Slide 14: Highlights of Forecast (FY2023)

    Highlights of Forecast (FY2023) • Revised upward for all profit items. Three sectors(a) is expected to grow revenues (YoY +8%) and increase Adj. EBITA (YoY +104.4bn yen, +14%) • Core FCF was revised upward by 100.0bn yen due to enhancement of cash flow management and an increase in advances received

  15. Slide 15: Highlights of Forecast (FY2023)

    Highlights of Forecast (FY2023) Previous forecast FY2023 Forecast YoY comparison Dynamics Adj. Adj. Adj. Revenues Revenues Revenues Billions of yen EBITA(a) EBITA EBITA Digital Systems & 2,550.0 321.0 +7% +27.2 +3% +11.0 • Segment forecast was revised upward by 80.0bn yen in revenues Services and 11

  16. Slide 16: Factors Affecting Changes in Revenues and Adjusted EBITA (FY2023 Total)

    Factors Affecting Changes in Revenues and Adjusted EBITA (FY2023 Total) Revenues Billions of yen ⊕ Hitachi Energy ⊕ Hitachi Astemo ⊕ Front Business (Digital Systems & Services) Adjusted EBITA Billions of yen ⊕ Changes in business scale ⊕ Selling price change ⊖ Impact of rising material prices ⊖ Depr

  17. Slide 17: 4. Appendix

    4. Appendix © Hitachi, Ltd. 2024. All rights reserved. 16

  18. Slide 18: Highlights of Results (Q1-Q3 FY23)

    Highlights of Results (Q1-Q3 FY23) • Three sectors(a) grew revenues (YoY +12%) and increased Adj. EBITA (YoY +83.4bn yen, +17%) in organic • Core FCF increased in YoY due to enhancement of cash flow management and an increase in advances received and other gains in Hitachi Energy, despite the restru

  19. Slide 19: Highlights of Results (Q1-Q3 FY23)

    Highlights of Results (Q1-Q3 FY23) Q1-Q3 FY23 YoY Dynamics Adj. Adj. Revenues Revenues Billions of yen EBITA(a) EBITA Digital Systems & 1,823.2 222.0 +9% +33.7 • Segment revenues and profits increased due to expansion of Lumada Services business by harvesting digital demand 12.2% [+7%](b) +1.0 pts G

  20. Slide 20: Summary of Consolidated Statement of Profit or Loss

    Summary of Consolidated Statement of Profit or Loss Previous Q1-Q3 Q1-Q3 Q3 FY22 Q3 FY23 YoY YoY FY2022 FY2023 YoY forecast FY22 FY23 comparison Billions of yen Revenues 2,692.0 2,258.0 (16)% 8,108.7 7,218.1 (11)% 10,881.1 9,450.0 (13)% +3% Adjusted Operating Income 202.8 200.2 (2.6) 527.4 525.7 (1.

  21. Slide 21: Revenues by Market (Q1-Q3 FY23)

    Revenues by Market (Q1-Q3 FY23) ASEAN, North Overseas Japan China India, other Europe Other areas America Revenues Billions of yen areas Digital Systems & Services 1,183.0 25.6 143.0 253.5 176.4 41.5 640.2 YoY +12% (27)% (1)% +5% +9% +8% +3% Green Energy & Mobility 254.6 151.1 186.7 464.2 729.6 341.

  22. Slide 22: Orders Results by Business Segment

    Orders Results by Business Segment • Orders remained firm mainly in Hitachi Energy, despite declines due to the large orders in the previous year in Nuclear Energy and Railway Systems Q1-Q3 Q1-Q3 Billions of yen Q3 FY23 YoY YoY Q3 FY23 YoY YoY FY23 FY23 Digital Systems & Connective Services 663.1 +2

  23. Slide 23: Notes

    Notes Item Contents Three sectors “Three sectors," which is calculated by subtracting "Hitachi Astemo" from the “Total,“ includes "Others" and "Corporate items & Eliminations." Adjusted EBITA Adjusted operating income plus acquisition-related amortization and equity in earnings (losses) of affiliate

  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: @rget%e, e

    e e @rget%e, e e sd

Hitachi Ltd Ord — Q3 2023 Earnings Presentation on 6ix