Hitachi, Ltd. · TSE:6501
Hitachi — Merger or Acquisition (July 2020)
16 slides from Hitachi's merger presentation, Jul 2, 2020
Slide 1: Energy Solution Business Pioneered by Hitachi and Hitachi ABB Power Grids
Energy Solution Business Pioneered by Hitachi and Hitachi ABB Power Grids July 2, 2020 Toshikazu Nishino Executive Vice President and Executive Officer, Hitachi, Ltd. Chairman and Director, Hitachi ABB Power Grids Ltd © Hitachi, Ltd. 2020. All rights reserved.
Slide 2: Global Energy Trends
Global Energy Trends ◼ Progress in decarbonization and Energy a shift to renewable energy Producers ◼ Large-scale centralized power supply and distributed power supply ◼ RE100 membership expansion (200+companies)* Energy ◼ Increased electricity demand Expansion of the data center scale Users ◼ ◼ Ele
Slide 3: Strong Investment in Renewable Energy
Strong Investment in Renewable Energy •Under various countries’ current development plans, renewable energy generation will grow at a CAGR of around 4.5% and annual investment will be more than US$300 billion •Increased generation and investment are needed for sustainable development •To utilize ren
Slide 4: Overview of the Acquisition
Overview of the Acquisition ◼ Power grids business was spun off from ABB and Hitachi acquired 80.1% of shares on July 1, 2020 Overview ◼ After three years (2023) of the joint venture's establishment, Hitachi will make it a wholly owned subsidiary ◼ Enterprise value is worth US$11 billion (1,188.0 bi
Slide 5: Aims of the Acquisition
Aims of the Acquisition •Strengthen and expand energy solutions business globally as a core of Social Innovation Business •Accelerate Hitachi’s transformation into a truly global company by integration with advanced global management of the new company Environmental Economic Assets acquired Social v
Slide 6: Business Basis: No.1 Global Business
Business Basis: No.1 Global Business •Acquisition of world-class products, systems and solutions •Strong order backlog; earnings to recover with the convergence of COVID-19 No.1 market share* Grid automation Grid integration High voltage Transformers Main products and services ◼ Automation products,
Slide 7: Management basis: Global Customer Base and Human Resource
Management basis: Global Customer Base and Human Resource •Acquisition of global infrastructure and approx. 36,000 talented employees to drive our Social Innovation Business •Accelerate collaborative creation with global customers and partners Strategic clients Frontline (sales and marketing) resour
Slide 8: Hitachi’s Progress in Globalization
Hitachi’s Progress in Globalization •Overseas employees / revenue ratio of Hitachi Group jump up with the new company •Accelerate transformation into a truly global company with further improved diversity Increase in the number of employees 50+% by region with the new company*3 ～10% 80+% ～50% for th
Slide 9: Trends and Opportunities in Major Markets
Trends and Opportunities in Major Markets North America Europe Middle East Progress of digitization Eco-friendly grid Post-oil & gas ◼ High value digital solutions ◼ EV + EV charging stations ◼ Utilization of renewable energy ◼ Energy blockchain ◼ Hybridization in railways ◼ Smart urban infrastructu
Slide 10: Business Expansion in 3 Phases Leveraging Global Infrastructure
Business Expansion in 3 Phases Leveraging Global Infrastructure Short-term (up to 1 year) Medium-term (1 to 2 years) Long-term (2-3 years) New 3 Development of new markets Expansion of digital businesses 2 digital solutions Existing 1 and markets market Quick win 1 ◼ Hitachi ABB Power Grids' strong
Slide 11: Short-Term: Expand the Customer Value Achieved from New Company’s Energy Solutions with Lumada
Short-Term: Expand the Customer Value Achieved from New Company’s Energy Solutions with Lumada •Hitachi ABB Power Grids’ modular software approach allows for integration of OT and IT data sources and is well positioned to leverage the power of Lumada Network state & modeling Asset health Asset regis
Slide 12: Medium to Long-Term: Development and Deployment of New Energy Solutions
Medium to Long-Term: Development and Deployment of New Energy Solutions •Co-creation of new solutions with both customers within the Energy Sector (energy producers and T&D companies) and new customers, such as from the Mobility and Industry Sector Large-scale RE100 Distributed power sources Grid En
Slide 13: Becoming a Global Leader in Social Innovation Business
Becoming a Global Leader in Social Innovation Business Combining digital technology with world-class power grids business to lead the global power grids transformation Becoming a global leader in Social Innovation Business × Leading innovation The world’s leading with digital technology power grids
Slide 14: Management Team of the New Company
Management Team of the New Company Energy sector Hitachi ABB Power Grids Ltd Toshikazu Nishino Claudio Facchin Executive Vice President CEO and Executive Officer Directors Hitachi Group ABB Ltd Atsushi Oda Toshikazu Atsushi Ryuichi Duncan Manuel Timo Frank Senior Vice President Nishino Oda Otsuki Ha
Slide 15: Hitachi Social Innovation is POWERING GOOD
Hitachi Social Innovation is POWERING GOOD
Slide 16: HITACHI
HITACHI Inspire the Next