Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2014)
23 slides from Hitachi's investor day presentation, Jun 12, 2014
Slide 1: Information & Telecommunication Systems Business Strategy
Information & Telecommunication Systems Business Strategy Hitachi IR Day 2014 June 12, 2014 Yutaka Saito Executive Vice President and Executive Officer President & CEO Information & Telecommunication Systems Group and Information & Telecommunication Systems Company Hitachi, Ltd. © Hitachi, Ltd. 2014
Slide 2: Contents
Information & Telecommunication Systems Business Strategy Contents 1. 2015 Mid-term Management Plan 2. Business Policy 3. Strengthening Global Services Business 4. Strengthening Management Foundation and Progress of the Hitachi Smart Transformation Project 5. Business Performance Trends and FY2015 T
Slide 3: 2015 Mid-term Management Goal
1-1. 2015 Mid-term Management Goal Management Policy Become a global major player by 3Gs (Growth, Global and Group) FY2013*1 FY2014*1 FY2015*1 (Results) (Forecast) (Forecast) Revenues 1,934.9 billion yen 1,950.0 billion yen 2,100.0 billion yen Operating income 106.5 billion yen 136.0 billion yen 200
Slide 4: Market Trends and Target Position
1-2. Market Trends and Target Position Market trends n Target Position: Global major player n Accelerated paradigm shift in utilizing Expand revenue and enhance profitability services Operating income: l Changes in target markets and the competitive environment 5B$ 10B$ n Intensifying competition in
Slide 5: Contents
Information & Telecommunication Systems Business Strategy Contents 1. 2015 Mid-term Management Plan 2. Business Policy 3. Strengthening Global Services Business 4. Strengthening Management Foundation and Progress of the Hitachi Smart Transformation Project 5. Business Performance Trends and FY2015 T
Slide 6: Business Policy
2-1. Business Policy Lead Social Innovation Business by IT and provide customer value through “One Hitachi” Mining Telematics Transportation Urban development Finance Healthcare Logistics Energy Agriculture Manufacturing FY2015 Expand global services business Operating income forecast: Establish a m
Slide 7: Add Value to Global Services Business
2-2. Add Value to Global Services Business Transform the business portfolio with high value-added services business n Expand the software and services business based on the strong product capabilities of Hitachi Data Systems n Lead Social Innovation Business through upstream consulting with Hitachi
Slide 8: Contents
Information & Telecommunication Systems Business Strategy Contents 1. 2015 Mid-term Management Plan 2. Business Policy 3. Strengthening Global Services Business 4. Strengthening Management Foundation and Progress of the Hitachi Smart Transformation Project 5. Business Performance Trends and FY2015 T
Slide 9: Strengthen Global Services Business (1)
3-1. Strengthen Global Services Business (1) Strengthen initiatives in the Social Innovation Business Expand innovation by utilizing information Government Agriculture, forestry Finance n Promote the Social Innovation Business by and fisheries leveraging the strengths of Hitachi Group businesses Hea
Slide 10: Strengthen Global Services Business (2)
3-2. Strengthen Global Services Business (2) Further improvement of quality and reliability in Japanese market Execute risk control from upstream by strengthening project management n Addressed most of the unprofitable projects in FY2013, control steadily Implement Large SI projects n Realize innova
Slide 11: Strengthen Global Services Business (3)
3-3. Strengthen Global Services Business (3) Globally expand services across the entire value chain Financial Channel Solutions Payment services through Prizm nExpand value chain in ATM equipment Customer Prizm Financial institutions in India business Payment lProvide one-stop service from ATM servi
Slide 12: Strengthen Global Services Business (4)
3-4. Strengthen Global Services Business (4) Added greater value to storage platforms that have a global customer base by software and services n Storage services Add value Application / Convert data to l Hitachi Cloud Services Information intelligence by analytics l Managed services n Content archi
Slide 13: Strengthen Global Services Business (5)
3-5. Strengthen Global Services Business (5) Invest in realizing new customer value Strengthened R&D, consulting and service provision bases via consolidated company management Main progress since FY2013 l European Big Data Lab n Strengthen services for social (U.K.) (October 2013) Europe infrastruc
Slide 14: Global Business Plan
3-6. Global Business Plan Expand provision of solutions and pioneer the Social Innovation Business centered on Hitachi Data Systems and Hitachi Consulting n North America and Europe: Continue investments for strengthening provision of solutions n China: Expand solutions business by strengthening app
Slide 15: Contents
Information & Telecommunication Systems Business Strategy Contents 1. 2015 Mid-term Management Plan 2. Business Policy 3. Strengthening Global Services Business 4. Strengthening Management Foundation and Progress of the Hitachi Smart Transformation Project 5. Business Performance Trends and FY2015 T
Slide 16: Strengthen Management Foundation
4-1. Strengthen Management Foundation Strengthen cash flow management n Improve business efficiency by implementing SCM reform projects l Promote E2E transformation projects Increase cash flow l Promote standardization of production processes Increase profitability and raise production efficiency an
Slide 17: Progress of the Hitachi Smart Transformation Project
4-2. Progress of the Hitachi Smart Transformation Project Earnings structure* Progress 5.9 5.5 Operating n FY2013 SG&A expenses improved 7.0 9.5 income year over year SG&A SG&A - Progress in indirect operation reforms 30.3 29.3 30.0 29.5 expenses n Accelerate optimization 4.6 4.0 5.1 within the Hita
Slide 18: Contents
Information & Telecommunication Systems Business Strategy Contents 1. 2015 Mid-term Management Plan 2. Business Policy 3. Strengthening Global Services Business 4. Strengthening Management Foundation and Progress of the Hitachi Smart Transformation Project 5. Business Performance Trends and FY2015 T
Slide 19: Business Performance Trends
5-1. Business Performance Trends* Amount of orders 1,787.5 1,838.3 1,981.8 1,983.9 2,131.0 received 64% Over 65% (billion yen) Service revenue ratio 62% 60% 60% 35% Revenues 33% Operating (billion yen) 30% income Overseas revenue ratio (billion yen) 26% 2,100.0 25% 1,934.9 1,950.0 300 2,000 1,764.2
Slide 20: FY2015 Business Plan
5-2. FY2015 Business Plan* Revenues by segments (billion yen) Operating income by segments (billion yen) 2,100.0 200.0 1,934.9 1,950.0 1,249.0 136.0 1,127.3 1,170.9 99.0 106.5 70.1 47.4 828.2 865.8 969.0 80.0 51.9 56.5 217.1 176.2 203.0 6.9 4.6 19.0 FY2013 FY2014 FY2015 FY2013 FY2014 FY2015 (Results
Slide 21: Conclusion: FY2015 Targets
5-3. Conclusion FY2015 Targets nRevenues: 2,100.0 billion yen (Overseas revenue ratio 35%) nOperating income (EBIT) ratio: 9.5% (9.0%) nGross margin: 2.8 point improvement (from FY2012) nSG&A expenses ratio: 0.8 point improvement (from FY2012) Become a global major player by 3Gs (Growth, Global and
Slide 22: 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 23: © Hitachi, Ltd. 2014. All rights reserved.
© Hitachi, Ltd. 2014. All rights reserved.