Hitachi, Ltd. · TSE:6501

Hitachi — Environmental / R&D Strategies Web Conference (February 2021)

36 slides from Hitachi's conference presentation, Feb 25, 2021

  1. Slide 1: Research & Development Strategy

    Environmental / R&D Strategies Web Conference Research & Development Strategy To become a global innovation leader February 25, 2021 Norihiro Suzuki, Ph.D. Vice President & Executive Officer, CTO General Manager, Research & Development Group General Manager, Corporate Venturing Office Hitachi, Ltd.

  2. Slide 2: Today's Key Messages

    Today’s Key Messages 1 Expand R&D investment for carbon neutrality Create innovation in the environment area 2 with the new Hitachi Group companies, Hitachi ABB Power Grids and Hitachi Astemo 3 Accelerate R&D to expand Lumada business © Hitachi, Ltd. 2021. All rights reserved. 1

  3. Slide 3: Contents

    Research & Development Strategy Contents 1. Direction of the R&D Group 2. Innovation for value creation 3. Technology development for Lumada business expansion 4. Summary © Hitachi, Ltd. 2021. All rights reserved. 2

  4. Slide 4: Contents

    Research & Development Strategy Contents 1. Direction of the R&D Group 2. Innovation for value creation 3. Technology development for Lumada business expansion 4. Summary © Hitachi, Ltd. 2021. All rights reserved. 3

  5. Slide 5: 1-1 Direction of R&D

    1-1 Direction of R&D Global Social Issues Covid-19 Effects • Climate change • Restrictions on the movement of people • Scarcity of resources and changes in lifestyles • Demographic changes due to aging • “Contactless,” “Remote,” “Automation“ • Challenges in urbanization/Resilience • Disruption & res

  6. Slide 6: 1-2 Research & Development Group policy

    1-2 Research & Development Group policy Become a global innovation leader driving Society 5.0 and SDGs Basic policy Global R&D organization Technology Strategy Office Value-based innovation Global R&D strategy Global Center for Social Innovation (CSI) • Create innovation in “Environment,” “Resilienc

  7. Slide 7: 1-3 Hitachi Gr. investment in R&D

    1-3 Hitachi Gr. investment in R&D Increase R&D investment for growth in “Environment” and “Digital” R&D investment R&D efficiency Past 3-yr. average of R&D expenditure R&D expenditure (Billion JPY) R&D expenditure / Revenue (%) A R&D expenditure 3.0 (IT company) Hitachi 400 4000 as a % of Revenue 4.

  8. Slide 8: 1-3 Hitachi Gr. investment in R&D

    1-3 Hitachi Gr. investment in R&D Increase R&D investment for growth in “Environment” and “Digital” R&D investment Hitachi Group R&D portfolio R&D expenditure (Billion JPY) R&D expenditure / Revenue (%) R&D expenditure Corporate, misc. Publicly listed 400 4000 as a % of Revenue 4.0% affiliated compa

  9. Slide 9: 1-4 Corporate R&D portfolio

    1-4 Corporate R&D portfolio Focus corporate R&D investment to create value-based innovation Research target Research portfolio / Startup collaboration BU initiatives Business roadmap Value-based Other Frontier themes Sponsored & Platform research Current business 12% research Frontier 10% Environ. B

  10. Slide 10: 1-5 Major external recognitions

    1-5 Major external recognitions Nikkan Kogyo Shimbun Ichimura Prize in Industry Ichimura Prize in Industry Best 10 New Products Awards / R&D100 (Masuda Prize) for Distinguished Achievement against Global Warming Safety & Security Environment Environment Resilience Adsorption tower Development & prac

  11. Slide 11: 1-6 Contribution to Lumada business growth

    1-6 Contribution to Lumada business growth Co-creation with Lumada alliance program Business expansion with Hitachi assets × digital FY2019 FY2020 *2 FY2021 *2 3.6 4.5 Lumada business revenues*1 3.4 RDG contribution / Corporate (100 billions of yen) 10.4 11.0 14.0 RDG: Research and Development Group

  12. Slide 12: Contents

    Research & Development Strategy Contents 1. Direction of the R&D Group 2. Innovation for value creation 3. Technology development for Lumada business expansion 4. Summary © Hitachi, Ltd. 2021. All rights reserved. 11

  13. Slide 13: 2-1 To solve challenges in society

    2-1 To solve challenges in society Capture changes in society/customers, form visions with industry-government-academia, disseminate globally Hitachi U.Tokyo Lab. Hitachi Kyoto U. Lab Environment ecosystem Formulated scenario for New vision for a Participate in the Participate in 2050 carbon neutral

  14. Slide 14: 2-2 Value-based innovation and technology platform enhancement

    2-2 Value-based innovation and technology platform enhancement Development of global No.1 technology by focusing on “Environment,” “Resilience,” and “Safety & Security” Environment Resilience Safety & Security 2-5 Energy Highly-efficient Online 2-6 Renewable energy 2-7 Hydrogen 2-8 Green Business el

  15. Slide 15: 2-3 Innovation with Hitachi ABB Power Grids

    2-3 Innovation with Hitachi ABB Power Grids Develop core business in environment through the synergy of Hitachi ABB Power Grids’ and Hitachi’s technology platforms Large-scale 100% RE Distributed power sources Grid Energy HVDC supply power (nuclear energy automation management and others) services s

  16. Slide 16: 2-4 Innovation with Hitachi Astemo

    2-4 Innovation with Hitachi Astemo Become a global leader in CASE using Hitachi R&D advantage • Multimodal transport solutions • Cybersecurity • MaaS (Mobility-as-a-Service) • Data accumulation & AI analytics • Energy management systems • OTA Connected vehicles tech. On-board devices, software AD/AD

  17. Slide 17: Environment

    Environment Electrification SiC Grid control system power device Realize net zero emission by solving root problems in renewable energy, electrification and Digital Hydrogen hydrogenation certification of co-firing Hydrogen renewable power production energy generation © Hitachi, Ltd. 2021. All right

  18. Slide 18: 2-5 Initiatives in electrification

    2-5 Initiatives in electrification Maximizing the drive efficiency of the electrified system to realize carbon neutrality Reducing CO2 emission throughout the value chain High efficiency inverter “Realizing carbon neutrality in our own production by Nikkan Kogyo Shimbun FY2030” to accelerate the cre

  19. Slide 19: 2-6 Initiatives in energy field (1)

    2-6 Initiatives in energy field (1) Grid control and energy management systems for the expanded introduction of renewable energies Online grid control Demand side energy management Enhance renewable energy amount by world’s first risk Integrate analysis of real-time forecasting and historical data t

  20. Slide 20: 2-7 Initiatives in energy field (2)

    2-7 Initiatives in energy field (2) Visualization of renewable energy usage for each facility & service Digital certification of 100% renewable energy usage Utilizing smart meters and blockchain technology to digitally certificate RE usage for each product / service Various power Consumer (e.g. comp

  21. Slide 21: 2-8 Initiatives for hydrogen energy

    2-8 Initiatives for hydrogen energy Develop system and material technology for the realization of a sustainable hydrogen value chain Highly efficient hydrogen co-firing Large-scale blue hydrogen production system power generation system Flexible use of hydrogen with a power generation system Realize

  22. Slide 22: Resilience

    3-5 レジリエンス Resilience IoT compass Supply chain Smart optimization manufacturing Improve customers’ business resilience towards changes in society and environment; Improve resilience of Maintenance Disaster Drone societal infrastructure such as national land of societal prevention operation resilienc

  23. Slide 23: 2-9 Initiatives for resiliency improvement in industry field

    2-9 Initiatives for resiliency improvement in industry field Value chain optimization to flexibly respond to changes in business environment WEF advance factory “Lighthouse” Digital solution for industry Omika Works Total optimization through planning optimization service by work site visualization

  24. Slide 24: Safety & Security

    Safety & Regenerative Biochemical Smart medicine immuno-assay aging Security Realize a safe and secure society raises human QoL by resolving the new challenges posed by climate change, “Empty-hand” COVID-19, aging Digital Security authentication population, progress in healthcare operations platform

  25. Slide 25: 2-10 Initiatives in medical/pharma for Safety & Security

    2-10 Initiatives in medical/pharma for Safety & Security Raise QoL with “Measurement × Digital” and “Bio × IT” Clinical immuno-assay Regenerative medicine Machine learning-based image processing tech. Provide regenerative medicine value chain platform improves accuracy and throughput of testing ■Aut

  26. Slide 26: 2-11 Initiatives in IT for Safety & Security

    2-11 Initiatives in IT for Safety & Security Provide safety Providing safetyand & security security to people in in people’s both cyber activities andand in cyber physical space physical space “Empty-handed” authentication Human flow / behavior visualization World's first PBI technology Provide safe

  27. Slide 27: Contents

    Research & Development Strategy Contents 1. Direction of the R&D Group 2. Innovation for value creation 3. Technology development for Lumada business expansion 4. Summary © Hitachi, Ltd. 2021. All rights reserved. 26

  28. Slide 28: 3-1 Establishment of Lumada Data Science Lab.

    3-1 Establishment of Lumada Data Science Lab. Gathering top data scientists in Kyōsō-no-Mori Facilitate the spiraling of R&D and business by bringing together technology and know-how in data use Pursue Lumada business expansion using Hitachi's unique customer co-creation system NEXPERIENCE Advanceme

  29. Slide 29: 3-2 Initiatives in AI

    3-2 Initiatives in AI Technology development based on AI ethics, Top prize in international competition AI ethics International AI competitions “AI Ethical Principles” for progress in AI technology Video:Top class in TRECVID 2020 supporting a human-centric society TREC Video Retrieval Lumada related

  30. Slide 30: 3-3 Initiatives in 5G solutions

    3-3 Initiatives in 5G solutions 5G demonstration environment and co-creation acceleration toward real-time control use case Telepresence remote operation support N. America: September 2020 Press release Realistic presence, real-time comprehension of on-site situation, Silicon Valley and remote opera

  31. Slide 31: 3-4 Initiative in quantum computing

    3-4 Initiative in quantum computing Promote R&D for a scalable silicon quantum computer with industry-government-academia collaboration Collaboration Physics (Hitachi Cambridge JST Moonshot Lab.) Research & Development Implementation Program R&D of large-scale integrated Silicon silicon quantum comp

  32. Slide 32: Contents

    Research & Development Strategy Contents 1. Direction of the R&D Group 2. Innovation for value creation 3. Technology development for Lumada business expansion 4. Summary © Hitachi, Ltd. 2021. All rights reserved. 31

  33. Slide 33: 4-1 Summary

    4-1 Summary Strengthen R&D in environmental and digital fields to become a global innovation leader driving carbon neutrality Safety Resilience Environment & Security © Hitachi, Ltd. 2021. All rights reserved. 32

  34. Slide 34: 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

  35. Slide 35: Hitachi Social Innovation is POWERING GOOD

    Hitachi Social Innovation is POWERING GOOD

  36. Slide 36: HITACHI

    HITACHI Inspire the Next

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