Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2012)
30 slides from Hitachi's investor day presentation, Jun 14, 2012
Slide 1: Information & Telecommunication Systems Business Strategy
Information & Telecommunication Systems Business Strategy Hitachi IR Day 2012 June 14, 2012 Shinjiro Iwata Senior Vice President and Executive Officer, President & CEO Information & Telecommunication Systems Group, President & CEO Information & Telecommunication Systems Company, Hitachi, Ltd. © Hita
Slide 2: Contents
Information & Telecommunication Systems Business Strategy Contents 1. Business Overview and Outlook 2. Market Trend and Business Policy 3. Measures for Focused Businesses 4. Strengthen System Solutions Business and Platform Business 5. Strengthen Business Structure 6. Conclusion © Hitachi, Ltd. 2012
Slide 3: 1-1 Business Fields
1-1 Business Fields Provide highly reliable social infrastructure systems Collaborative creation with customers based on quality and trust Services IT services Data center Consulting System Solutions Integrated Platforms Servers / Storage / Networks Large-scale systems Hardware Highly reliable syste
Slide 4: 1-2 Business Overview
1-2 Business Overview Management vision : Contribute to Social Innovation Business through collaborative creation with customers Business size FY2011 revenues: ¥1,764.2 billion Revenue breakdown Software Hardware Services (Incl. System solutions) 30 10 60 Financial institutions Government Industry,
Slide 5: 1-3 FY2011 Results and FY2012 Forecasts
1-3 FY2011 Results and FY2012 Forecasts (1) Revenues Revenues (Billion yen) FY2011 Summary Hardware/software Services 2,300.0 lRevenues rose due to increased 1,652.0 1,764.2 1,760.0 sales from services in Japan, as well as sales in storage solutions and consulting overseas Services revenue ratio Out
Slide 6: 1-4 FY2011 Results and FY2012 Forecasts
1-4 FY2011 Results and FY2012 Forecasts (2) Operating Income Operating Income (Billion yen) FY2011 Summary Operating income ratio Over 8.0% lEarnings rose mainly due to 6.8% improved hardware profitability, 6.0% 5.8% notably in telecommunications & network systems. 185.0 120.0 Outlook from FY2012 10
Slide 7: Contents
Information & Telecommunication Systems Business Strategy Contents 1. Business Overview and Outlook 2. Market Trend and Business Policy 3. Measures for Focused Businesses 4. Strengthen System Solutions Business and Platform Business 5. Strengthen Business Structure 6. Conclusion © Hitachi, Ltd. 2012
Slide 8: 2-1 Market Trends and Competitive Environment
2-1 Market Trends and Competitive Environment IT market Base year 2008=100 124 118 Japan Global 113 108 106 100 100 98 92 93 94 93 91 91 90 91 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 Source: IDC, June, 2012 ”Worldwide Black Book Query Tool, Version1.1, 2012” (
Slide 9: 2-2 Where we are at?
2-2 Where we are at? Transform into a global major player by expanding business in the social infrastructure field (%) IBM 2011 20 2009 Operating income ratio 15 HP (%) 2011 2009 10 10 NTT Data 2015 2009 2011 2011 5 2009 FUJITSU 80 100 120 140 Information & NEC ($billion) 2011 Telecommunication 2009
Slide 10: 2-3 Key Focus and Our Strength
2-3 Key Focus and Our Strength Grow business out of leveraging fusion (information, control and infrastructure) Contribution to safe, secure and comfortable social innovation supported by highly reliable systems Financial institutions Education Healthcare/ Medical Government Manufacturing/ logistics
Slide 11: 2-4 FY2015 Business Targets
2-4 FY2015 Business Targets Revenues: ¥2.3 trillion Operating income ratio: Over 8% FY2015 Targets Overseas revenue ratio: 35% Services revenue ratio: 65% Be Globally Competitive in the information and telecommunication systems business field Continue to grow in the Japanese market by developing new
Slide 12: Contents
Information & Telecommunication Systems Business Strategy Contents 1. Business Overview and Outlook 2. Market Trend and Business Policy 3. Measures for Focused Businesses 4. Strengthen System Solutions Business and Platform Business 5. Strengthen Business Structure 6. Conclusion © Hitachi, Ltd. 2012
Slide 13: 3-1 Highly Reliable Cloud Computing Business Strategy
3-1 Highly Reliable Cloud Computing Business Strategy Set out to create highly reliable cloud computing services for social infrastructure systems and mission critical operations Related revenues FY2012: ¥200 billion FY2015: ¥500 billion Expanded adoption by various business segments, categories and
Slide 14: 3-1 Highly Reliable Cloud Computing Business Strategy
3-1 Highly Reliable Cloud Computing Business Strategy Set out create highly reliable cloud computing services for social infrastructure systems and mission critical operations Related revenues FY2012: ¥200 billion FY2015: ¥500 billion Expanded adoption by various business segments, categories and ap
Slide 15: 3-2 Smart Information Business Strategy
3-2 Smart Information Business Strategy Expand IT business for social infrastructure and new business areas Related revenues FY2015: ¥100 billion Further develop the social infrastructure business Promote proposal-type businesses with “Information”, “control” and “infrastructure” for customers respo
Slide 16: 3-3 Big Data Related Business Strategy
3-3 Big Data Related Business Strategy Support customers’ business expansion through big data utilization Related revenues FY2015: ¥150 billion Collaborative creation with customers Create solutions Establish Accumulate know-hows through new Business operations Application to systems collaborative p
Slide 17: Contents
Information & Telecommunication Systems Business Strategy Contents 1. Business Overview and Outlook 2. Market Trend and Business Policy 3. Measures for Focused Businesses 4. Strengthen System Solutions Business and Platform Business 5. Strengthen Business Structure 6. Conclusion © Hitachi, Ltd. 2012
Slide 18: 4-1 Expand System Solutions Business and Platform Business
4-1 Expand System Solutions Business and Platform Business Continuously grow in the Japanese market and expand business globally System solutions Enhance business and improve efficiency through Group consolidated management Business Strengthen global business centered on Hitachi Consulting Platform
Slide 19: 4-2 Strengthen System Solutions Business
4-2 Strengthen System Solutions Business Expand business and add value propositions via consolidation of in-house companies Continue to leverage business in the Japanese market “Aggressive sales” Accommodate needs of big customer accounts, steadily develop the major SI business New development to ge
Slide 20: 4-3 Strengthen the Platform Business
4-3 Strengthen the Platform Business Provide integrated platform solutions to support key focus areas and create value propositions with customers worldwide Make know-how Field to Future Information cloud formulated knowledge Technology Total management Software Content cloud of diversified data Inf
Slide 21: 4-4 Strengthen Business via Consolidated in-house companies
4-4 Strengthen Business via Consolidated in-house companies Enhance synergies among in-house companies and leverage strengths of each company Pursue synergies in and out Japan among Hitachi, Ltd. and Hitachi group companies Joint proposals, solutions lineups sharing Develop businesses utilizing each
Slide 22: Contents
Information & Telecommunication Systems Business Strategy Contents 1. Business Overview and Outlook 2. Market Trend and Business Policy 3. Measures for Focused Businesses 4. Strengthen System Solutions Business and Platform Business 5. Strengthen Business Structure 6. Conclusion © Hitachi, Ltd. 2012
Slide 23: 5-1 Hitachi Smart Transformation Project
5-1 Hitachi Smart Transformation Project Transform cost structure to compete with global companies - Plan and execute drastic measures with “Simple”, “Slim” and “Best Practice” - [Business Structure Reforms] [Fixed Expense Structure Reform] [Variable Expense Structure Reform] Optimize manufacturing
Slide 24: 5-2 Strengthen Business Bases
5-2 Strengthen Business Bases Enhance business bases for realizing information and telecommunications systems business to compete globally Improve Financial Structure Generate stable earnings to invest for business expansion with cost structure reforms Investment plan for FY2012: ¥160 billion R&D in
Slide 25: Contents
Information & Telecommunication Systems Business Strategy Contents 1. Business Overview and Outlook 2. Market Trend and Business Policy 3. Measures for Focused Businesses 4. Strengthen System solutions business and Platform business 5. Strengthen Business Structure 6. Conclusion © Hitachi, Ltd. 2012
Slide 26: 6-1 Conclusion
6-1 Conclusion Revenue (Billion yen) Operating Income (Billion yen) Hardware/software Services [2,300.0] Operating income ratio Over 8.0% [1,652.0] [1,700.0] [1,750.0] 2,300.0 6.8% 1,652.0 1,764.2 1,760.0 6.0% 5.8% 185.0 185.0 Services revenue ratio 122.0 110.0 120.0 65 98.6 101.7 58 60 61 98.6 FY20
Slide 27: 6-1 Conclusion FY2015 Targets
6-1 Conclusion FY2015 Targets Revenues: ¥2,300 billion, Operating income ratio: Over 8% Overseas revenue ratio: 35% Services revenue ratio: 65% © Hitachi, Ltd. 2012. All rights reserved. 27
Slide 28: 6-2 Vision
6-2 Vision We bring innovation to realize human dreams with IT, control and social infrastructure. © Hitachi, Ltd. 2012. All rights reserved. 28
Slide 29: 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 30: HITACHI
HITACHI Inspire the Next