Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2013)

25 slides from Hitachi's investor day presentation, Jun 13, 2013

  1. Slide 1: Urban Planning and Development Systems Business Strategy

    Urban Planning and Development Systems Business Strategy Hitachi IR Day 2013 June 13, 2013 Toshio Ikemura Vice President and Executive Officer Infrastructure Systems Group President & CEO Urban Planning and Development Systems Company Hitachi, Ltd. © Hitachi, Ltd. 2013. All rights reserved.

  2. Slide 2: Contents

    Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Market Trends and Competitive Environment 3. Business Policy and Growth Strategy 4. Transformation 5. Business Performance Outlook and Targets © Hitachi, Ltd. 2013. All rights reserved.

  3. Slide 3: 1-1. Business Overview

    1-1. Business Overview Elevator and Building-related Services, etc. Escalator Business (78%) (22%) Manufacture, sales, installation, Energy saving maintenance and modernization of elevators and escalators Security FY2012 Consolidated Revenues 491 billion yen Development of the building-related busin

  4. Slide 4: 1-2. Business Overview: Three Core Values

    1-2. Business Overview Value Chain of Urban Planning and Development Systems Company Development Sales Design Manufacture Installation Maintenance Modernization Three Core Values  High-performance product development capabilities Development (Develop unrivaled products)  Globally developed product

  5. Slide 5: 1-3. Promote globalization centered on regional HQs

    1-3. Business Overview Main Development, Manufacturing, Sales and Service Bases Turkey Tianjin Japan Chengdu Shanghai Kuwait Saudi Arabia India UAE Oman China regional HQ Guangzhou (Guangzhou) Thailand Philippines Vietnam Regional HQ Development and design bases Malaysia Manufacturing and assembly p

  6. Slide 6: 1-4. Delivery Record (FY2012)

    1-4. Delivery Record (FY2012) InterContinental Doha Hotel Taikoo Hui 40 floors, 212 m 59 floors, 220 m 102 ultra-high-speed and 12 high-speed elevators high-speed elevators and escalators Nation Towers 64 floors, 273 m 55 high-speed elevators Abu Dhabi (UAE) Doha (Qatar) Guangdong (China) TCG Financ

  7. Slide 7: Contents

    Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Market Trends and Competitive Environment 3. Business Policy and Growth Strategy 4. Transformation 5. Business Performance Outlook and Targets © Hitachi, Ltd. 2013. All rights reserved.

  8. Slide 8: 2-1. Market Trends

    2-1. Market Trends FY2013→FY2015 New Installation Market Trends (Thousand units, Hitachi estimates) 505 21 20 430 Japan 32 36 827 Global 31 38 China 733 Middle East India 640 Asian belt FY2013 FY2015 553 zone 17 18 553 640 Asian belt zone thousand thousand Southeast Asia FY2013 FY2015 demand units u

  9. Slide 9: 2-2. Competitive Environment

    2-2. Competitive Environment Hitachi’s Positioning (Elevators and Escalators) and Growth Targets (growth rate comparing most recent year with two years ago) Growth rate for revenues (FY2015) Hitachi Overseas company C Japanese company E Overseas company D Japanese company F Overseas company A Overse

  10. Slide 10: Contents

    Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Market Trends and Competitive Environment 3. Business Policy and Growth Strategy 4. Transformation 5. Business Performance Outlook and Targets © Hitachi, Ltd. 2013. All rights reserved.

  11. Slide 11: 3-1. Business Policy and Growth Strategy

    3-1. Business Policy and Growth Strategy Business policy: 13% global share in FY2015 China Quickly become No.1 in China (No.1 in FY2014 in terms of market share, brand value and customer satisfaction)  Expand sales in new installation market and enhance production system  Raise brand value by deve

  12. Slide 12: 3-2. Growth Strategy (China)

    3-2. Growth Strategy (China) Expand Sales in the New Installation Market (No.1 market share in FY2014) Strengthen sales capabilities in New Installation Market Share (FY2012, Hitachi estimate) inland areas and regional cities Expansion of Sales and Company A Service Network Other 16% 30% Hitachi Co

  13. Slide 13: 3-3. Growth Strategy (China): Enhance Production System

    3-3. Growth Strategy (China) Enhance Production System Increase production capacity to cope with sales expansion  Build new plants and lift capacity at existing bases to increase production capacity Locally produce ultra-high-speed elevators and increase in-house production Commenced production New

  14. Slide 14: 3-4. Growth Strategy (Southeast Asia, India and Middle East)

    3-4. Growth Strategy (Southeast Asia, India and Middle East) Enhance Production System and Expand Business in India Enhance production system Expand business in India  Centralize production by making the new  Expand target customer base by Thai plant as the core plant introducing models specifical

  15. Slide 15: 3-5. Growth Strategy (New Regions)

    3-5. Growth Strategy (New Regions) Penetrate New Markets by Cooperating with Distributors and Partners Turkey Tianjin Chengdu Shanghai Kuwait UAE India Guangzhou China regional HQ Saudi Arabia Oman (Guangzhou) Myanmar Philippines Thailand Vietnam Regional HQ Manufacturing, assembly and parts plants

  16. Slide 16: 3-6. Growth Strategy (Japan)

    3-6. Growth Strategy (Japan) Market Environment Hitachi’s Elevators and Escalators Comparison of Modernization and New Modernization market is expanding due to Installation Order Received Units increased number of aging elevators New installation <>Modernization ratio Increasing demand for repairing

  17. Slide 17: Contents

    Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Market Trends and Competitive Environment 3. Business Policy and Growth Strategy 4. Transformation 5. Business Performance Outlook and Targets © Hitachi, Ltd. 2013. All rights reserved.

  18. Slide 18: 4-1. Transformation

    4-1. Transformation Globalize and reform business structure Strengthen development capabilities to respond to market needs in each region Supply products from optimal locations to global markets based on local production for local consumption Bolster service business (overseas maintenance, moderniza

  19. Slide 19: 4-2. Promote Hitachi Smart Transformation Project

    4-2. Promote Hitachi Smart Transformation Project Cost Structure Reforms  Raise production efficiency by centralizing Production production of common components costs  Apply modular design  Expand global procurement Direct materials  Strengthen cost planning and development costs purchasing  Un

  20. Slide 20: Contents

    Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Market Trends and Competitive Environment 3. Business Policy and Growth Strategy 4. Transformation 5. Business Performance Outlook and Targets © Hitachi, Ltd. 2013. All rights reserved.

  21. Slide 21: 5-1. FY2012 Result/FY2013 Forecast

    5-1. FY2012 Result/FY2013 Forecast (Billion yen) FY2012 FY2013 Previous Result YoY Forecast YoY forecast Revenues 425.0 491.0 118％ 500.0 102% (Overseas revenue ratio) (36%) (41%) - (50%) - EBIT* 33.3 36.4 112% 40.0 110%  Generated higher revenues in FY2012 as a whole due to strong performance of ov

  22. Slide 22: 5-2. Business Performance Trends

    5-2. Business Performance Trends 56% Revenues Overseas Revenue Ratio 50% EBIT ～ ～ (Billion yen) 41% (Billion yen) 31% 34% <570.0> 600 560.0 56.0 60 <501.2> <510.0> 491.0 500.0 500 <394.5> <442.7> 50 404.5 417.3 40.0 400 36.4 40 Over ～ ～ 29.8 32.6 10% 300 30 8.0% 200 7.8% 20 7.4% 7.4% 100 10 0 0 ～ ～

  23. Slide 23: 5-3. FY2015 Targets

    5-3. FY2015 Targets FY2015 Targets Revenues: 560 billion yen (overseas revenue ratio: 56%) EBIT (operating income) ratio: over 10% Gross margin: 1.1 point improvement (Vs. FY2012) SG&A expense ratio: 2.4 point improvement (Vs. FY2012) Aim to expand business further, centered on overseas business, an

  24. Slide 24: 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

  25. Slide 25: HITACHI Inspire the Next

    HITACHI Inspire the Next

Hitachi — Investor Day (June 2013) on 6ix