Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2012)
24 slides from Hitachi's investor day presentation, Jun 14, 2012
Slide 1: Urban Planning and Development Systems Business Strategy
Urban Planning and Development Systems Business Strategy Hitachi IR Day 2012 June 14, 2012 Toshio Ikemura Vice President and Executive Officer Infrastructure Systems Group President & CEO Urban Planning and Development Systems Company Hitachi, Ltd. © Hitachi, Ltd. 2012. All rights reserved.
Slide 2: Contents
Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Global Position and Growth 3. Business Strategy 4. Business Performance Outlook and Targets © Hitachi, Ltd. 2012. All rights reserved.
Slide 3: 1-1 Business Overview
1-1 Business Overview Building FM* Elevator and business, etc. (26%) Escalator business (74%) Manufacture, sales, installation, Energy saving maintenance and modernization Energy saving of elevators and escalators assessment FY2011 Energy saving control Consolidated Security Revenues Video surveilla
Slide 4: 1-2 Business Overview: Value Chain
1-2 Business Overview Value Chain of Urban Planning and Development Systems Company Development Sales Design Manufacture construction Maintenance Modernization Three Core Values • High-performance product development capabilities Development (Develop unrivaled products) • Globally developed producti
Slide 5: 1-3 Business Overview
1-3 Business Overview Main development, manufacturing sales and service bases Istanbul Tianjin Japan Chengdu Shanghai Kuwait Jeddah Dubai Muscat Delhi China regional HQ Guangzhou (Guangzhou) Bangkok Manila Ho Chi Minh City Regional HQ Development and design bases Kuala Lumpur Manufacturing and assem
Slide 6: 1-4 Delivery Record
1-4 Delivery Record Japan Overseas Shiodome City Center Al Hamra Mixed-Use Complex(Kuwait) Height: 215 m (43 floors) Height: 412 m (77 floors) Ultra-high-speed elevators Ultra-high-speed elevators (Speed: 540 m/min) (Speed: 600 m/min : Fastest in the Middle East) Shanghai World Financial Center (Chi
Slide 7: Contents
Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Global Position and Growth 3. Business Strategy 4. Business Performance Outlook and Targets © Hitachi, Ltd. 2012. All rights reserved.
Slide 8: 2-1 Global Position
2-1 Global Position Hitachi's Positioning (Elevators and Escalators) and Targets Average growth rate for revenues (FY 2015) (average over past 3 years) Hitachi Overseas Company B Japanese Company E Overseas Company A Overseas Company C Japanese Company F Overseas Company D *Circle: scale of revenues
Slide 9: 2-2 Promote Hitachi Smart Transformation Project
2-2 Promote “Hitachi Smart Transformation Project" Growth Strategy Expand business in China, the world‘s largest market (aim to be No. 1 elevator and escalator manufacturer) Develop competitive products in global markets Strengthen links with distributors and partners around the world Cost Structure
Slide 10: Contents
Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Global Position and Growth 3. Business Strategy 4. Business Performance Outlook and Targets © Hitachi, Ltd. 2012. All rights reserved.
Slide 11: 3-1 Market Trends (Elevators and Escalators)
3-1 Market Trends (Elevators and Escalators) FY2012→FY2015 New Installation Market Trends (Thousand units, Hitachi estimates) 400 18 19 340 Japan 720 16 18 Global 33 47 China 619 The Middle East India Asian belt 520 zone FY2012 FY2015 442 14 15 442 520 Asian belt thousand thousand Southeast Asia zon
Slide 12: 3-2 Global Strategy (Elevators and Escalators)
3-2 Global Strategy (Elevators and Escalators) FY2015 target: 12% global share China Aim to be No. 1 in China (No. 1 in terms of market share, brand value and customer satisfaction) n Achieve top share in the new installation market by strengthening sales, service and manufacturing frameworks n Rais
Slide 13: 3-3 Global Strategy (China)
3-3 Global Strategy (China) Expand business to achieve No. 1 share in the new installation market Strengthen sales and service capabilities n Expand and upgrade sales and service bases Manufacturing plants (No. of bases: As of March 31, 2012: 65 bases Tianjin Parts plants → As of March 31, 2013: 79
Slide 14: 3-4 Global Strategy (China)
3-4 Global Strategy (China) Raise brand value by developing and introducing the world’s No. 1 products Develop faster elevators in response to demand for the construction of higher and larger buildings Develop and launch the world’s fastest elevators (1,000 m/min class) Change of Elevator Speed in M
Slide 15: 3-5 Global Strategy (Southeast Asia, India and the Middle East)
3-5 Global Strategy (Southeast Asia, India and the Middle East) Expand orders by expanding and enhancing product lineup Expand and enhance product portfolio Enhance production system n Launch standard-model medium n Make the new Thailand plant an Asian core plant →Expand production capacity to 5,000
Slide 16: 3-6 Global Strategy (Future Business Development)
3-6 Global Strategy (Future Business Development) Penetrate the new equipment market by cooperating with distributors and partners Istanbul Tianjin Chengdu Shanghai Kuwait Dubai Delhi Guangzhou China regional HQ Jeddah Muscat (Guangzhou) Bangkok Manila Ho Chi Minh City Kuala Lumpur Regional HQ Manuf
Slide 17: 3-7 Global Strategy (Japan)
3-7 Global Strategy (Japan) n Hitachi’s Elevators and Escalators Market Environment Comparison of Modernization and Modernization market is expanding new installation order received units due to increased number of aging New installation < > Modernization ratio elevators Modernization (Thousand unit
Slide 18: 3-8 Building FM Business Strategy
3-8 Building FM Business Strategy Energy-saving market trends Increased demand for energy and power saving due to tight electricity supplies after the Great East Japan Earthquake n Energy-saving framework by user size User Framework for energy saving • Usage regulations imposed by the revised For sm
Slide 19: Contents
Urban Planning and Development Systems Business Strategy Contents 1. Business Overview 2. Global Position and Growth 3. Business Strategy 4. Business Performance Outlook and Targets © Hitachi, Ltd. 2012. All rights reserved.
Slide 20: 4-1 FY2011 Actual / FY2012 Forecast
4-1 FY2011 Actual / FY2012 Forecast (Billion yen) FY2011 FY2012 Previous Previous Actual YoY Forecast YoY forecast target Revenues 407.0 417.3 103% 420.0 425.0 102% (Overseas revenue ratio) (34%) (34%) - (36%) (36%) - Operating income 31.0 31.8 106% - 34.0 107% (Operating income ratio) (7.6%) (7.6%)
Slide 21: 4-2 Business Performance Trends
4-2 Business Performance Trends Overseas revenue ratio 43% 36% 34% [36%] [34%] Operating income Revenues 31% ratio(%) (Billion yen) 12 500.0 Over 10% 10 500.0 417.3 425.0 [420.0] 404.5 [407.0] 400.0 8 8.0% 7.4% 7.6% 300.0 6 200.0 4 100.0 2 0 0 FY2010 FY2011 FY2012 Forecast FY2015 Target Elevator and
Slide 22: 4-3 FY2015 Targets
4-3 FY2015 Targets FY2015 Targets Revenues: ¥500.0 billion Overseas revenue ratio: 43% Operating income ratio: Over10% Aim to expand business further, centered on overseas business, and actively promote the “Hitachi Smart Transformation Project.” © Hitachi, Ltd. 2012. All rights reserved. 22
Slide 23: 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 24: HITACHI Inspire the Next
HITACHI Inspire the Next