Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (November 2024)
16 slides from Hitachi's investor day presentation, Nov 18, 2024
Slide 1: Hitachi Rail Investor Days: Vehicles LoB Presentation
Hitachi Rail Investor Days Vehicles LoB Presentation Luca D'Aquila Chief Operating Officer & Head of Vehicles 18 November 2024 © Hitachi, Ltd. 2024. All rights reserved.
Slide 2: 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 3: Secular trends are supporting the Rail Vehicles market
Secular trends are supporting the Rail Vehicles market Selected trends supporting Rail Vehicles market Growing Urban population set to exceed 6.5B people by ≈70% 2050, strongly increasing demand for of global population in cities population and Mobility and Mass Transportation by 2050 vs ≈55% in 202
Slide 4: Vehicles' market size reaching 8.4 T¥ by 2027
Vehicles' market size reaching 8.4 T¥ by 2027 Hitachi Rail Vehicles reference market evolution ('23-'27, T¥) by Market Segment by Business Type CAGR CAGR 4.5% '23-'27 4.5% '23-'27 8.4 8.4 7.0 ~20% Other RS1 2.2% 7.0 2.6 S&M3 3.9% ~21% ~13% High Speed 5.9% 2.2 ~12% Mass ~28% Transport 8.8% ~24% 5.7 O
Slide 5: EU and APAC will remain the largest geographies
EU and APAC will remain the largest geographies Hitachi Rail reference market Total market '23-'27 ≈4.5% North America Europe Middle East APAC1 Japan (9%) (61%) (3%) (23%) (4%) MARKET SIZE AND GROWTH 6.0% (T¥, 5.1 CAGR %) 4.0 -1.2% 6.0% 39.4% 2.1 2.0 3.8% 0.6 0.7 0.1 0.2 0.3 0.4 23 27 23 27 23 27 23
Slide 6: We have a unique approach to win in the Vehicles market
We have a unique approach to win in the Vehicles market • Prioritise premium segments (e.g. Very High Speed) Selectively approach • Leverage Hitachi Rail presence, incl. newly acquired GTS OEM business footprint, to ensure market access and protect profitability • Generate recurring revenues through
Slide 7: Our portfolio covers all major market segments
Our portfolio covers all major market segments Backlog mix Battery train Eco-design Digital train xx% range 2024 Mass Transit ≈20% Multiple Units ≈5% High Speed ≈10% Light Rail Light Metro Heavy Metro Regional/Commuter Intercity Very High Speed Streetcar Light Metro Heavy Metro MASACCIO1 AT300 WCP E
Slide 8: We deliver state-of-the-art rolling stock around the globe
We deliver state-of-the-art rolling stock around the globe Hitachi Vehicles enhance worldwide mobility delivering cutting-edge rolling stock and comprehensive solutions for both urban and mainline Italy High-Speed Train Fastest mass-produced high-speed in Europe, with >95% of recyclability UK AT300
Slide 9: Our most recent achievements
Our most recent achievements Selected examples COMMERCIAL DELIVERY INNOVATION S&M on 1 Honolulu Metro 2 HMAX1 digital asset Very High Speed Revenue service for management Deliver S&M on 103 Very Segment 1 of the 1st fully Unveiled collaboration with High Speed in ITA, growing autonomous urban railwa
Slide 10: Delivery: Honolulu Skyline, first driverless metro in USA
1 Delivery: Honolulu Skyline, first driverless metro in USA Delivered 1st Fully Autonomous Metro System in USA Deliver a safe and efficient urban transit option on the Challenge Pacific island of Honolulu that balances Hawaii’s delicate environment and addresses significant congestion issues Metro t
Slide 11: We have a global Manufacturing & Service footprint
We have a global Manufacturing & Service footprint Manufacturing Footprint Hagerstown NEW – Focus next Served markets: North America (mainly US) Hagerstown Production lines: Metro – currently in ramp-up Mito Maryland ( ) stage Ibaraki ( ) Newtown Aycliffe 5 Served markets: main European countries Pr
Slide 12: We recently opened a new 'state-of-the-art' factory in NAM
We recently opened a new ‘state-of-the-art’ factory in NAM Hitachi Rail opened a new ‘state-of-the-art’ factory to scale-up Digital factory at a glance presence in the North America – 3 pillars to become the Most Advanced Rail factory in the world Hagerstown, LOCATION Maryland (US) Digitalised Net Z
Slide 13: Strong 2024 performance with increasing share of Service
Strong 2024 performance with increasing share of Service Charts not in scale Order intake (B¥) Revenues (B¥) Backlog1 (B¥) xx % of Service xx % of Service xx % of Service 994 507 494 3,367 448 3,136 2,623 672 595 2022A 2023A 2024F 2022A 2023A 2024F 2022A 2023A 2024F 39% 35% 67% 26% 30% 32% 60% 60% 6
Slide 14: Our vision and key priorities going forward
Our vision and key priorities going forward Our Hitachi Rail contributing to the evolution of the Vehicles market towards Digitalisation & vision Sustainability while enhancing safety, customer experience & operators' TCO1 Our key Selectively expand Strengthen focus on Maximize internal Internal pri
Slide 15: Vehicles: Summary and key takeaways
Vehicles: Summary and key takeaways Growing and evolving Vehicles market Vehicles market Vehicles market to reach 8T¥ by 2027; vehicles backbone role to evolve from hardware-based to Sustainable and Digitalised means to transform Mobility space Selective market focus to increase profitability Our st
Slide 16: HITACHI Inspire the Next
HITACHI Inspire the Next