Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2013)
26 slides from Hitachi's investor day presentation, Jun 13, 2013
Slide 1: Automotive Systems Business Strategy
Automotive Systems Business Strategy Hitachi IR Day 2013 June 13, 2013 Kunihiko Ohnuma Chairman & CEO Hitachi Automotive Systems, Ltd. © Hitachi, Ltd. 2013. All rights reserved.
Slide 2: Contents
Automotive Systems Business Strategy Contents １. Business Overview ２. Market Trends ３. Growth Strategy ４. Business Targets © Hitachi, Ltd. 2013. All rights reserved.
Slide 3: 1-1. Business Concept
1-1. Business Concept Harness advanced technologies in the environment, safety and information fields to create new value for people, automobiles and society, and a richer society Become the most globally trusted corporate group Environment Eco-friendly energy control with high efficiency Informatio
Slide 4: 1-2. Business Structure
1-2. Business Structure Drive control systems Powertrain & electronic control systems Electrically-driven intelligent brake Stereo camera Hybrid systems Motors Inverters Suspension systems 20% Safety 30% field Lithium-ion batteries Car information systems FY2012 (Hitachi Vehicle Energy) Clarion Cons
Slide 5: 1-3. Hitachi's Management Structure
1-3. Hitachi’s Management Structure Hitachi Ltd., President Infrastructure Systems Group Information & Telecommunication Systems Group Established as Power Systems Group an independent group from the Infrastructure Systems Group Construction Machinery Group on April 1, 2013 High Function Materials &
Slide 6: Contents
Automotive Systems Business Strategy Contents １. Business Overview ２. Market Trends ３. Growth Strategy ４. Business Targets © Hitachi, Ltd. 2013. All rights reserved.
Slide 7: 2-1. Global Auto Production Trends
2-1. Global Auto Production Trends By region By auto-manufacturers By vehicle segments (Million unit/year) 108 108 108 93 93 16% 93 34% 81 Local 81 14% 81 Emerging 58% manufacturers Middle, nations’ big cars 35% 12% markets 54% Global 38% 49% manufacturers 84% Small cars 86% Industrialized 66% natio
Slide 8: 2-2. Global Regulatory Trends
2-2. Global Regulatory Trends Environmental regulations Safety evaluation CO2 regulations region Evaluate 2012 2013 2014 2015 2016 2017 2020 institution [gCO2/km] (Normalized to NEDC) 200 U.S. Collision warning / Lane departure warning NCAP Europe U.S. /IIHS* Collision avoidance / Mitigate damage 15
Slide 9: 2-3. Global Technology Trends
2-3. Global Technology Trends サステナブルな社会を実現するモビリティテクノロジーへ Increased focus on mobility technology for creating a sustainable society Environment Enhancing state-of-the-art electronic control and electric drive technologies Creation of more efficient internal combustion engines Improvement of power
Slide 10: Contents
Automotive Systems Business Strategy Contents １. Business Overview ２. Market Trends ３. Growth Strategy ４. Business Targets © Hitachi, Ltd. 2013. All rights reserved.
Slide 11: 3-1. Global Position Analysis
3-1. Global Position Analysis Electronics products* share of TOP 10 global parts suppliers by revenue in FY2011 100％ Source: Arthur D. Little Global TOP 10 domain Electronics products Share FY2020 target 60% by revenues in FY2011 FY2015 target 50% Company F Company B Company I 50％ Hitachi Company A
Slide 12: 3-2. Global growth strategy
3-2. Global growth strategy Global-winning global growth strategy Customer strategy Regional strategy Product strategy Expand sales to Produce locally for local Build next-generation global automakers consumption in regions environment, around the world safety systems Strengthen proposals Focus on
Slide 13: 3-3. Customer Strategy
3-3. Customer Strategy Expand sales to global automakers Customer composition and Targets Strengthen proposal capabilities 1 trillion yen Use GAM/GAT to strengthen global response 811.5 billion yen Bolster customer strategy-matching proposals 60% of by strengthening integrated contact points Other t
Slide 14: 3-4. Regional Strategy
3-4. Regional Strategy Increase production bases in emerging nations 19 bases +4 23 bases +4 27 bases FY2008 FY2011 FY2012 China 13 15 16 Thailand 4 4 4 Mexico 2 2 4 Czech Republic 0 1 1 India 0 1 2 Brazil Dispatch sales representatives Considering plans for entry Russia Considering plans for entry
Slide 15: 3-5. Emerging Nation Business Expansion
3-5. Emerging Nation Business Expansion Emerging nation revenue target indices China 300 100 94 Eastern 2010 2012 2015 (FY) Target Europe Emerging nations South and total 200 Central America 121 150 100 100 135 Asia 2010 2012 2015 (FY) Target 200 100 146 2010 2012 2015 (FY) Target 2010 2012 2015 (FY
Slide 16: 3-6. Global Product Standardization
3-6. Global Product Standardization Promotion of modular design - Standardization of product specifications - Standardize MONOZUKURI Sync Build global standard Standard portion Variable portion production lines ・ Reduce types of components ・ Facilitate response Facilitate the startup of making up pr
Slide 17: 3-7. Enhance Core Products
3-7. Enhance Core Products Differentiate next-generation systems by enhancing core products Contribution to creation of automobiles attractive to customers Next-generation Next-generation powertrain control chassis control Next-generation system differentiation Ultra Drive Electric drive Safety supp
Slide 18: 3-8. Helping Create Next-generation Vehicles
3-8. Helping Create Next-generation Vehicles Contribute by synergy to the creation of next-generation vehicles fit for a sustainable society Hitachi’s key technologies support sustainable society Hitachi Automotive Systems Environment Safety Next generation Next-generation Information mobility techn
Slide 19: 3-9. Investing in Growth
3-9. Investing in Growth Investment in electronic control and electric drive globally Investment composition R&D expenditure 80.0 billion yen 1.5 times 58.3 (Vs. FY2011) Over- 52.8 billion yen seas Domestic billion yen 40% 40% Domestic Over-seas 48 2 times 60% 60% 29 24 billion yen (Vs. FY2011) bill
Slide 20: 3-10. Progress of Hitachi Smart Transformation Project
3-10. Progress of Hitachi Smart Transformation Project Main past initiatives Production Promotion of modular design - Standardization of product specifications and MONOZUKURI - costs Strengthening of high-efficiency production and quality at optimal production locations Direct material Lower costs t
Slide 21: 3-11. Strengthening Cash Flow Management
3-11. Strengthening Cash Flow Management Initiatives for improving free cash flows Issues and areas to strengthen Earnings improvement initiatives Improve operating Raise inventory turnover ratio Bolster global production management cash flows to optimize global inventories Shorten develop and proto
Slide 22: Contents
Automotive Systems Business Strategy Contents １. Business Overview ２. Market Trends ３. Growth Strategy ４. Business Targets © Hitachi, Ltd. 2013. All rights reserved.
Slide 23: 4-1. Business Targets
4-1. Business Targets FY2015 targets: revenues: 1 trillion yen, EBIT ratio : 7.0% Revenues Overseas revenue ratio for global customer bases* EBIT (Billion yen) 55% 60% (Billion yen) 48% 50% 50% ～ 80 1 trillion yen 1,000 70 820.0 7.0% 811.5 806.8 60 800 ～ 737.9 5.0% 4.6% 4.5% 50 600 40 3.2% 70.0 400
Slide 24: 4-2. FY2015 targets
4-2. FY2015 targets FY2015 targets Revenues: 1 trillion yen (Overseas revenue ratio for global customer bases 60%) EBIT (Operating income): 7.0% Gross margin:1 point improvement (Vs. FY2012) SG&A expense ratio: 2 point improvement (Vs. FY2012) Become the most globally trusted corporate group © Hitac
Slide 25: 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 26: HITACHI Inspire the Next
HITACHI Inspire the Next