Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2015)

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

  1. Slide 1: Automotive Systems Business Strategy

    Automotive Systems Business Strategy Hitachi IR Day 2015 June 11, 2015 Kunihiko Ohnuma Chairman & CEO Hitachi Automotive Systems, Ltd. © Hitachi, Ltd. 2015. All rights reserved.

  2. Slide 2: Contents

    Automotive Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Growth Strategy 4. Summary © Hitachi, Ltd. 2015. All rights reserved.

  3. Slide 3: 1-1. Business Concept

    1-1. Business Concept Environment Eco-friendly high efficiency engine and electronic powertrain systems Vehicle Integrated control system Information Ultra fuel- Safety Drive control systems In-vehicle information efficient and that optimize driving, systems safe cars steering, and that improve comf

  4. Slide 4: 1-2. Business Structure

    1-2. Business Structure Drive control systems Powertrain & electronic control systems Air flow sensors Motors Inverters Electrically-driven Semi-active Hydrogen intelligent brakes suspension dispensers Direct injection systems systems 20% Stereo cameras 30% Car information system (Clarion) FY2014 En

  5. Slide 5: 1-3. FY2015 Mid-term Management Plan Progress

    1-3. FY2015 Mid-term Management Plan Progress FY2015 FY2014 (Forecast) Year over FY2013 year (US GAAP) (US GAAP) (US GAAP) (IFRS) *1 (US GAAP) (IFRS) 892.1 936.9 936.9 1 1 +63.1 Revenues billion yen billion yen billion yen trillion yen trillion yen billion yen EBIT ratio 0.6% 3.7% 3.7% 7.0% 7.0% +3.

  6. Slide 6: 1-4. Business Performance Trends and Target

    1-4. Business Performance Trends and Target : Overseas revenue ratio for global customer bases Operating Revenues Revenues Income (Billion yen) 60% 60% 1.2 trillion yen (Billion yen) 1,200 56% 56% 53% 1,000 1,000 100 1,000 936.9 936.9 7.3%7.5% 892.1 7.0% 800 7.0%7.0% 6.8% 6.0% 600 5.3% 5.1% 50 3.7%

  7. Slide 7: 1-5. Hitachi Automotive Systems' Five Core Strategies

    1-5. Hitachi Automotive Systems’ Five Core Strategies TECHNOLOGY TECHNOLOGY Mechatronics product capability Systems integration capability “ADAS-based Integrated Control” for autonomous driving QUALITY SALES Vertically integrated Global account flexibility product quality capability The Automotive C

  8. Slide 8: Contents

    Automotive Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Growth Strategy 4. Summary © Hitachi, Ltd. 2015. All rights reserved.

  9. Slide 9: 2-1. Technology Supporting Vehicle Control and Customer Needs

    2-1. Technology Supporting Vehicle Control and Customer Needs 2010 2015 2020 2025 CO2 emission regulations 130g/km 95g/km 68～78g/km Emission regulations EURO5 EURO6 EURO7 Collision warning and Collision avoidance Night time pedestrians Safety evaluation avoidance pedestrians collision avoidance EV s

  10. Slide 10: 2-2. Global Position Analysis

    2-2. Global Position Analysis Top 10 global parts suppliers by revenues Electronics products*1 share (FY 2013 result) Company B Electronics products revenues*2 70％ FY2020 target of 60% Revenues 500 billion yen Electronics products share Company C 400 billion yen 50％ FY2015 target of 50% 38% Company

  11. Slide 11: Contents

    Automotive Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Growth Strategy 4. Summary © Hitachi, Ltd. 2015. All rights reserved.

  12. Slide 12: 3-1. Growth Strategy

    3-1. Growth Strategy Core Strategy 1 Increase efficiency of internal combustion engines and develop systems for electrically driven technology and autonomous driving Core Strategy 2 Core Strategy 3 Execute strategy of Expand global footprint customer diversity Execute 3 core strategies to achieve a

  13. Slide 13: 3-2. Strive to Achieve High Growth and Expand Global Share

    3-2. Strive to Achieve High Growth and Expand Global Share Environment field Safety field 10 times :Revenue target(FY2013(Result) FY2018(Target) High-function Strive for high growth electric power steering 7 times Lithium-ion batteries Double Electrically-driven intelligent brakes 3 times Inverters

  14. Slide 14: 3-3. Expand business through acceleration of innovations

    3-3. Expand business through acceleration of implementation of innovations in electronically-controlled and electrically-driven technologies Electric Stereo cameras Inverters Lithium-ion batteries power steering Technological strengthening innovation Expand the detection area Achieve 50% increase by

  15. Slide 15: 3-4. Improvement of system capabilities and quality reliability

    Vertical integration within the Group 3-4. Improvement of system capabilities and insurance of quality reliability Examples ADAS integrated control unit Integrated control system Increasingly advanced components Electric power steering Electronically-controlled and electrically-driven High precision

  16. Slide 16: 3-5. Examples of ADAS Business Promotion

    3-5. Examples of ADAS Business Promotion Automatic parking systems centered on camera to High-speed recognition of parking boundaries monitor the surroundings, developed jointly by and parking spaces through camera-image Hitachi Automotive Systems, Ltd. and Clarion Co., Ltd. processing Features Real

  17. Slide 17: 3-6. Technology That Links Vehicles, People, and Society (Clarion)

    3-6. Technology That Links Vehicles, People, and Society (Clarion) Safety support Probe information information Various content Cloud information network service Security Gateway Smart Access Outside recognition sensors SurroundEye Develop link to integrated vehicle control Advanced HMI Smart Cockpi

  18. Slide 18: 3-7. Strengthen Cooperation with the Hitachi Group

    3-7. Strengthen Cooperation with the Hitachi Group B2B services such as breakdown analysis Hitachi Group Vehicle cloud and big data analysis Cloud Information processing Vehicle Outside- Transportation Driver’s vehicle data information Energy information Traffic information data data Communication C

  19. Slide 19: 3-8. Execution of Customer Diversity Strategy

    3-8. Execution of Customer Diversity Strategy Revenues composition plan *1 Execution measures 1.2 1. Account expansion to exceed 10% share trillion yen 1 Execute cross-sales by GAM and GAT 936.9 trillion yen 892.1 billion yen Leveraging global footprint to support 16% customers developing business w

  20. Slide 20: 3-9. Expand Global Footprint

    3-9. Expand Global Footprint Number of March March production bases : 2010 2015 13 370 Americas 9 China 12 260 200 5 180 184 164 100 100 2010 2014 2015 2018 (FY) 2010 2014 2015 2018 (FY) Leveraging synergies within U.S. and full-fledged start of Strengthen regional integration and expand business Me

  21. Slide 21: 3-10. Regional Strategy (Example of new base)

    3-10. Regional Strategy (Example of new base) Mexico India Indicates indices based on FY2013 revenues Indicates indices based on FY2015 revenues Revenues Revenues 270 900 195 100 100 2013 2015 2018 (FY) 2015 2020 (FY) 1. Expand revenues by 2.7 times by FY2018 1. Expand revenues by 9 times by FY2020

  22. Slide 22: 3-11. Investment Strategy

    3-11. Investment Strategy Global investment and R&D Global investment amounts* and domestic and overseas investment ratios R&D expenditure 85.0 Overseas 80.0 billion yen investment billion yen 280.0 61.9 billion yen Domestic billion yen investment *New business investment, jigs and tools, purchase o

  23. Slide 23: 3-12. Hitachi Smart Transformation Project

    3-12. Hitachi Smart Transformation Project Execute growth strategy through structural reform and continuous innovation Promotion details Improve CCC (Manufacturing, services, etc.)*  Strengthen aftermarket business FY2012 FY2013 FY2014 FY2015 Retail business revenues up 50% (Result) (Result) (Resul

  24. Slide 24: Contents

    Automotive Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Growth Strategy 4. Summary © Hitachi, Ltd. 2015. All rights reserved.

  25. Slide 25: 4. Summary - FY2015 Targets

    4. Summary- FY2015 Targets- FY2015 Targets US GAAP IFRS Revenues 1 trillion yen 1 trillion yen Overseas revenue ratio 60.0% 60.0% for global customer bases Operating income ratio 7.0% 6.8% EBIT ratio 7.0% 7.0% Gross margin: 0.9 point improvement Benefits of Hitachi Smart (vs. FY2012) Transformation

  26. Slide 26: 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

  27. Slide 27: © Hitachi, Ltd. 2015. All rights reserved.

    © Hitachi, Ltd. 2015. All rights reserved.

Hitachi — Investor Day (June 2015) on 6ix