Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2016)

22 slides from Hitachi's investor day presentation, Jun 1, 2016

  1. Slide 1: Industrial Products Business Unit Business Strategy

    Industrial Products Business Unit Business Strategy Hitachi IR Day 2016 June 1, 2016 Masakazu Aoki Vice President and Executive Officer CEO, Industrial Products Business Unit, Hitachi, Ltd. President & Director Hitachi Industrial Equipment Systems Co. Ltd. © Hitachi, Ltd. 2016. All rights reserved.

  2. Slide 2: Contents

    Industrial Products Business Unit Business Strategy [Contents] 1. Business Overview 2. Review of 2015 Mid-Term Management Plan 3. Business Strategy 4. Results and Forecast 5. Conclusion © Hitachi, Ltd. 2016. All rights reserved.

  3. Slide 3: Positioning of Industrial Products BU within the New Structure

    1-1. Positioning of Industrial Products BU within the New Structure Establish strong industrial products business for providing values through products Realize customer’s growth potential Provide values through products Front Regional Bases Customer Segments(12BU) Platform Products Industrial Produc

  4. Slide 4: Philosophy of the Industrial Products Business

    1-2. Philosophy of the Industrial Products Business Vision Establish a strong products business for responding to the diverse industrial needs  Accelerate global growth strategy and strengthen business base Basic  Focus strategic investments and resources on Priority & Enhancing Policy Businesses

  5. Slide 5: Business Overview

    1-3. Business Overview Strong products for responding to the diverse industrial needs -- Providing high value added products created by the synergies between machinery and electronics -- Mass produced products Build-to-order products Machinery Small pumps Small fans ★ Air compressors Centrifugal com

  6. Slide 6: Review of 2015 Mid-Term Management Plan

    Industrial Products Business Unit Business Strategy [Contents] 1. Business Overview 2. Review of 2015 Mid-Term Management Plan 3. Business Strategy 4. Results and Forecast 5. Conclusion © Hitachi, Ltd. 2016. All rights reserved.

  7. Slide 7: Review of 2015 Mid-Term Management Plan (1)

    2-1. Review of 2015 Mid-Term Management Plan (1) FY2015 result Previous forecast*1 Variance FY2018 target Revenues 372.3 billion yen 381.8 billion yen (9.5) billion yen 400.0 billion yen Adjusted operating 2.1% 6.1% (4.0)% 8.0% income ratio EBIT ratio 1.3% 5.7% (4.4)% 7.2% Reasons for revenue declin

  8. Slide 8: Review of 2015 Mid-Term Management Plan (2)

    2-2. Review of 2015 Mid-Term Management Plan (2) Variance over previous forecast (Unit: Billion yen) Variance 381.8 372.3 (9.5) Mass produced (6.0) products 6.1% Variance 5.7% Variance Build-to-order (3.5) 2.1% (4.0)％ 1.3% (4.4)％ products +1.0％ +1.0％ Previous FY2015 Previous (8.4)％ Previous (9.1)％ f

  9. Slide 9: Business Strategy

    Industrial Products Business Unit Business Strategy [Contents] 1. Business Overview 2. Review of 2015 Mid-Term Management Plan 3. Business Strategy 4. Results and Forecast 5. Conclusion © Hitachi, Ltd. 2016. All rights reserved.

  10. Slide 10: Market Environment and Focus Area for Major Products

    3-1. Market Environment and Focus Area for Major Products Globally supply key products that underpin the Social Innovation Business Energy Resources General Industries Urban Market & Power Electronics, Electronic Devices Conveyance Transportation, Public Sectors Pharmaceuticals Processing Automotive

  11. Slide 11: Business Policy

    3-2. Business Policy Build-to-order production: Temporarily scale back under severe market environment, and strengthen business base for future regrowth Mass produced production: Increase share in growing industries, capture new markets and fields Market Business policy  Improve profitability regar

  12. Slide 12: Target Position

    3-3. Target Position Prioritize businesses and accelerate global growth strategy Products Target position Priority Air compressors, industrial marking, To become a leading global player Businesses centrifugal compressors, transformers -- Expanding business fields -- Enhancing To become a global play

  13. Slide 13: Growth Strategy (1) Global Business Expansion

    3-4. Growth Strategy (1) Global Business Expansion Focus on priority regions & industries Combine organic growth by products with strategic alliances Accelerate global growth strategy Business Priority markets Strengthen sales and service capabilities  Foster sales and service personnel Air Mexico

  14. Slide 14: Growth Strategy (2) Enhance IoT Capabilities

    3-5. Growth Strategy (2) Enhance IoT Capabilities Expand IoT enabled products Implementation Food & beverage Logistics, Amusement, Automotive Innovation for manufacturing process consumer goods Distribution Transportation and business management to connect Digitalized Social Innovation Business manu

  15. Slide 15: Strengthen Cost Strategy and Cash Generation

    3-6. Strengthen Cost Strategy and Cash Generation Execute business structure reform and improve business efficiency  Mass produced products Improvement rate over FY2015 Improve annual sales per person and, 10 reduce fixed cost ratio Gross Profit Margin SG&A  Build-to-order products 5.9 5 3.2 Reduc

  16. Slide 16: Results and Forecast

    Industrial Products Business Unit Business Strategy [Contents] 1. Business Overview 2. Review of 2015 Mid-Term Management Plan 3. Business Strategy 4. Results and Forecast 5. Conclusion © Hitachi, Ltd. 2016. All rights reserved.

  17. Slide 17: Results and Forecast (1)

    4-1. Results and Forecast (1) Revenues (Unit: Billion yen) Capturing domestic demands for energy conservation and renovations 400.0 Continued downturn in resource related markets Expansion of global operations 22.4 372.3 Fierce competition in domestic market (17.5) 350.0 27.6 (4.8) FY2015 (Result) F

  18. Slide 18: Results and Forecast (2)

    4-2. Results and Forecast (2) FY2015 (Result) FY2016 (Forecast) FY2018 (Target) Overseas Revenue Ratio 27% 27% 30% Revenues Adjusted operating income/ (billion yen) EBIT (billion yen) 500 50 400 400.0 40 372.3 31.8 350.0 [8.0%] 300 Build-to- 28.8 30 order [7.2%] Products 200 14.0 20 7.7 [4.0%] [2.1%

  19. Slide 19: Conclusion

    Industrial Products Business Unit Business Strategy [Contents] 1. Business Overview 2. Review of 2015 Mid-Term Management Plan 3. Business Strategy 4. Results and Forecast 5. Conclusion © Hitachi, Ltd. 2016. All rights reserved.

  20. Slide 20: Conclusion

    5. Conclusion FY2018 Target  Revenues 400.0 billion yen Increase by 7.4% over FY2015  Adjusted operating 8.0% [7.2%] income ratio [EBIT ratio] Improve by 5.9% [5.9%] over FY2015  Accelerate global growth strategy and strengthen business base  Focus strategic investments and resources on Priority

  21. Slide 21: 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

  22. Slide 22: © Hitachi, Ltd. 2016. All rights reserved.

    © Hitachi, Ltd. 2016. All rights reserved.

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