Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2012)
31 slides from Hitachi's investor day presentation, Jun 14, 2012
Slide 1: Hitachi Appliances Business Strategy
Hitachi Appliances Business Strategy Hitachi IR Day 2012 June 14, 2012 Haruki Yamamoto President and Director Hitachi Appliances, Inc. © Hitachi, Ltd. 2012. All rights reserved.
Slide 2: Contents
Hitachi Appliances Business Strategy Contents 1. Outline of Digital Media & Consumer Products Segment 2. Hitachi Appliances Business Overview 3. FY2011 Business Performance 4. Growth Strategy 5. Business Performance Plan © Hitachi, Ltd. 2012. All rights reserved.
Slide 3: Position of the Digital Media & Consumer Products Segment in the Hitachi Group
1-1 Position of the Digital Media & Consumer Products Segment in the Hitachi Group FY2011 consolidated revenues Main Companies in the ¥9,665.8 billion* Digital Media & Consumer [ ]: Composition ratio (%) Products Segment Financial Others [9] Information & Hitachi Consumer Services[3] Hitachi manufac
Slide 4: Segment Revenue Composition
1-2 Segment Revenue Composition Segment Revenue Composition (FY2011) Breakdown Revenues Composition ratio Hitachi Appliances Consolidated •Air conditioning business (Home use and commercial use) ¥546.1 billion 64% •Home appliances business (Electrical home appliances and new environment fields) Digi
Slide 5: Contents
Hitachi Appliances Business Strategy Contents 1. Outline of Digital Media & Consumer Products Segment 2. Hitachi Appliances Business Overview 3. FY2011 Business Performance 4. Growth Strategy 5. Business Performance Plan © Hitachi, Ltd. 2012. All rights reserved.
Slide 6: Hitachi Appliances Business Overview
2-1 Hitachi Appliances Business Overview New environment fields Hitachi Appliances is the corporations of Home Appliances and Air Conditioning Responsible for social and living Home use infrastructure in the Hitachi Group FY2011 Electrical home Consolidated appliances revenues ¥546.1 billion Growing
Slide 7: Position of Hitachi Appliances within Hitachi Group
2-2 Position of Hitachi Appliances within Hitachi Group Infrastructure Information & Power Systems Construction High Functional Telecommunication Systems Group Systems Group Group Machinery Group Materials Group Hitachi Hitachi Consumer Hitachi Consumer Appliances, Inc. Electronics Co., Ltd. Marketi
Slide 8: Product Lineup (Air Conditioning)
2-3 Product Lineup(Air Conditioning) Answer energy-saving needs and create comfortable air-conditioned environments in fields ranging from home use to industrial use Industrial use Commercial use (Shops, buildings, etc.) Home use Absorption & Room air conditioners Packaged air conditioners centrifug
Slide 9: Product Lineup (Home Appliances)
2-4 Product Lineup(Home Appliances) support people's lives, guided by the slogan “eco + α = Hitachi” Electrical home appliances New environment fields Refrigerators Washing machines Vacuum cleaners LED lamps LED lighting LED ceiling light Merged in October 2010 EcoCute Microwave ovens Rice cookers A
Slide 10: Contents
Hitachi Appliances Business Strategy Contents 1. Outline of Digital Media & Consumer Products Segment 2. Hitachi Appliances Business Overview 3. FY2011 Business Performance 4. Growth Strategy 5. Business Performance Plan © Hitachi, Ltd. 2012. All rights reserved.
Slide 11: Changes in FY2011
3-1 Changes in FY2011 FY2011 was a year of events that had a major social impact ⇒Affected the markets and Hitachi Appliances' results Impact on Events Impact Hitachi Appliances' Results Impact on Impact on markets production •Holiday rotation to • Increased demand Higher sales Japan Great East Japa
Slide 12: FY2011 Business Performance
3-2 FY2011 Business Performance FY 2011 Business Performance (Billion yen) FY2010 FY2011 FY2011 Compared to (Actual) (Previous forecast) (Actual) YoY previous forecast Revenues 502.6 540.0 546.1 109% 101% Air conditioning business 266.6 290.0 291.5 109% 101% Home appliances business 236.0 250.0 254.
Slide 13: Thailand Floods Damage and Restoration
3-3 Thailand Floods Damage and Restoration Flood Damage Restoration Hitachi Compressor (Thailand), Ltd. Started full-scale restoration efforts Compressors for refrigerators factory on November 28 after all water had been drained (Rojana Industrial Park, Ayutthaya) Inundated with flood waters for 4
Slide 14: Contents
Hitachi Appliances Business Strategy Contents 1. Outline of Digital Media & Consumer Products Segment 2. Hitachi Appliances Business Overview 3. FY2011 Business Performance 4. Growth Strategy 5. Business Performance Plan © Hitachi, Ltd. 2012. All rights reserved.
Slide 15: Market Trends (1)
4-1 Market Trends (1) FY2011 impacts Previous forecast Current view (as of FY2011) 2011-2012 trends Medium- to long-term trends Higher As before Great East Japan Earthquake Air Growth in energy-saving conditioning Lower demand Products following end to Increase in reconstruction Lower demand in Japa
Slide 16: Market Trends (2)
4-2 Market Trends (2) Air (Global Market) conditioning Data for: Japan, Asia, Middle East, Europe, Russia, Market Growth by Area Africa, North America, Central and South America, Hitachi estimate (Trillion yen) Oceania 2013-2015 *Packaged air conditioning systems + room air conditioners Area Medium-
Slide 17: Company Growth Strategy
4-3 Company Growth Strategy Revamped Strategy Based on FY2011 Changes (3) Accelerated expansion of LED lighting, solar power generation Basic policies and EMS businesses Promote local production Accelerate for local consumption Business Past Strategy (2011) expansion Execute premium strategy Develop
Slide 18: Global Business Expansion (1) Locations
4-4 Global Business Expansion (1) [Locations] China * The Qingdao manufacturing company is an equity-method affiliate Qingdao, Shanghai, Wuhu, Guangzhou, Hong Kong China (Manufacturing, sales) (Manufacturing, sales) India France Taiwan area (Manufacturing, (Sales) (Manufacturing, sales) sales) India
Slide 19: Air Conditioning Business Basic Policy
Global Business Expansion (2) 4-5 [Air Conditioning Business Basic Policy] Enter emerging nations from an early stage, develop business through local production for local consumption 20 bases 47 years 40 years 13 years worldwide Taiwan area Brazil India (1965 Established) (1972 Acquired equity inter
Slide 20: Air Conditioning Business Strategy
Global Business Expansion (3) 4-6 [Air Conditioning Business Strategy] Past Strategy Future Initiatives Continue basic strategy (Must monitor conditions) (1) Expand business leveraging Continue (Must monitor) existing base infrastructure India : Maintain competitiveness of home-use air conditioners
Slide 21: Home Appliance Business Basic Policy
Global Business Expansion (4) 4-7 [Home Appliance Business Basic Policy] Across-the-board backup from Hitachi, Ltd. laboratories 日本でシェア Product development No.１を targeting 狙った for No.1 Share Cutting-edge technology in 商品開発 Japan Front loading washing Machine development Inverter technologies H
Slide 22: Home Appliance Business in Japan Initiatives
Global Business Expansion (5) 4-8 [Home Appliance Business in Japan Initiatives] * Electrical home appliances (5 main products) Hitachi share (Refrigerators, washing machines, vacuum cleaners, 29 Continue using the microwave ovens, and rice cookers) 28 pop idol group Arashi (%) Source: JEMA (Terms o
Slide 23: Home Appliance Business Strategy
Global Business Expansion (6) 4-9 [Home Appliance Business Strategy] Past Strategy Future Initiatives Continue basic strategy (Quickly recover from Thailand floods) (1)Expand business mainly Continue using manufacturing bases Southeast Asia: Strengthen sales in Indonesia in Thailand and Vietnam Aggr
Slide 24: Aggressive Cost Strategy (Hitachi Smart Transformation Project)
4-10 Aggressive Cost Strategy (Hitachi Smart Transformation Project) Global business Intensifying expansion competition Basic Stance Create a competitive cost structure for establishing a global position. Stronger Reduce the total cost to Hitachi Group collaboration Target revenues by 4 percentage H
Slide 25: Business Expansion in New Environment Fields
4-11 Business Expansion in New Environment Fields Save energy throughout an entire city through systemization FY2015 Systemization Smart cities Accelerate ¥75.0 billion • Strengthen cooperation within Infrastructure Systems Group • Establish an Environmental Smart buildings Smart houses Business Equ
Slide 26: Contents
Hitachi Appliances Business Strategy Contents 1. Outline of Digital Media & Consumer Products Segment 2. Hitachi Appliances Business Overview 3. FY2011 Business Performance 4. Growth Strategy 5. Business Performance Plan © Hitachi, Ltd. 2012. All rights reserved.
Slide 27: Business Performance Trends
5-1 Business Performance Trends *[ ]：Previous forecasts or targets announced on June 16, 2011 Overseas revenue ratio ［35］ ［35］ 45 ［45］ 33 32 (%) 32 31 5.0 Operating income ratio ［2.7］ ［5.0］ 2.2 ［1.9］ (%) 0.9 2.5 1.0 655.0 ［655.0］ 546.1 560.0 Revenues ［540.0］ ［560.0］ 502.6 (Billion yen) 445.7 Air con
Slide 28: FY2012 Business Performance Forecast
5-2 FY2012 Business Performance forecast FY2012 Business Performance forecast (Billion yen) FY2011 (Actual) FY2012(Forecast) YoY Revenues 546.1 560.0 103% Air conditioning business 291.5 290.0 99% Home appliances business 254.6 270.0 106% Overseas revenue ratio 32% 31% -1% Operating income ratio 1.0
Slide 29: Conclusion
5-3 Conclusion FY2012 Forecasts FY2015 Targets Revenues: ¥ 560 billion Revenues: ¥ 655 billion Overseas revenue ratio: 31% Overseas revenue ratio: 45% Operating income ratio: 2.5% Operating income ratio: 5.0% Growing market of emerging economies A corporation that contributes to the global environme
Slide 30: 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
Slide 31: HITACHI Inspire the Next
HITACHI Inspire the Next