Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2011)
52 slides from Hitachi's investor day presentation, Jun 16, 2011
Slide 1: Consumer Business Strategy
Consumer Business Strategy Hitachi IR Day 2011 June 16, 2011 Shutoku Watanabe President and Representative Director Hitachi Consumer Electronics Co., Ltd. © Hitachi, Ltd. 2011. All rights reserved.
Slide 2: Position in Hitachi Group
1 Position in Hitachi Group FY2010 consolidated revenues Sales Composition of ¥9,315.8 billion* Digital Media & Consumer [ ]: Composition ratio (%) Products Financial Services [4] Information & Composi- Others Breakdown Revenues Telecommunication tion ratio [7] Systems [16] Digital Media & Digital m
Slide 3: Basic Management Policy for the Consumer Business
2 Basic Management Policy for the Consumer Business Basic Management Strategy Entire consumer business : Create and expand eco-friendly living infrastructure businesses Video related products and components business : Create global No.1 businesses in optical storage and LCD projectors Home appliance
Slide 4: Consumer Business Revenue Composition
3 Consumer Business Revenue Composition Digital media business Others Others Others ¥386.0 billion ¥340 billion ¥360 billion FY2010 FY2011 FY2012 consolidated revenues consolidated revenues consolidated revenues ¥951.5 billion ¥950 billion ¥1,000 billion ¥502.6 billion ¥540 billion ¥560 billion Hita
Slide 5: Create and Expand Eco-friendly Living Infrastructure Business
4 Create and Expand Eco-friendly Living Infrastructure Business Basic Strategies Develop and sell through energy-saving products Launch EMS (Energy Management System) business Power Energy-saving products generation Storage All-electric housing Accumulator Lighting Air S-LED batteries EcoCute Solar
Slide 6: FY2012 Targets
5 FY2012 Targets FY2012 Targets Revenues: ¥1,000 billion Overseas revenue ratio: 50% Operating income ratio: 2.0% Entire consumer business : Create and expand eco-friendly living infrastructure businesses Video related products and components Business : Create global No.1 businesses in optical stora
Slide 7: Digital Media Business Strategy
Digital Media Business Strategy Hitachi IR Day 2011 June 16, 2011 Shutoku Watanabe President and Representative Director Hitachi Consumer Electronics Co., Ltd. © Hitachi, Ltd. 2011. All rights reserved.
Slide 8: Digital Media Business Strategy Contents
Digital Media Business Strategy Contents 1. Business Overview 2. Business Policy and Growth Strategy 3. Management Targets © Hitachi, Ltd. 2011. All rights reserved.
Slide 9: Position of Digital Media Business Within Hitachi Group
1-1 Position of Digital Media Business Within Hitachi Group FY2010 consolidated revenues Sales Composition of ¥9,315.8 billion* Digital Media & Consumer [ ]: Composition ratio (%) Products Financial Services [4] Information & Composi- Others Breakdown Revenues Telecommunication tion ratio [7] System
Slide 10: Business Overview
1-2 Business Overview Strengthen key components and products aiming to be the top runner in video related technology Flat-panel TVs Flat-panel TVs Flat-panel TVs 29% 20% 17% FY2010 FY2011 FY2012 Consolidated Consolidated Consolidated revenues revenues revenues ¥386.0 billion ¥340.0billion ¥360.0bill
Slide 11: Digital Media Business Strategy Contents
Digital Media Business Strategy Contents 1. Business Overview 2. Business Policy and Growth Strategy 3. Management Targets © Hitachi, Ltd. 2011. All rights reserved.
Slide 12: FY2010-FY2012 Medium-term Management Plan
2-1 FY2010-FY2012 Medium-term Management Plan Create a continuously profitable structure centered on the video related products and components business. Strengthen key components and products aiming to be the top runner in video related technology FY2012: Target operating income ratio of 1.0% Captur
Slide 13: LCD Projectors (1) Target
2-2 Video related products and components business : LCD Projectors (1) Aim to secure No. 1 share worldwide Target (Over 16% in FY2012) Product High-value-added Basis models Share in No. 2 share No. 1 share 31% High-value-added: Ultra short throw/high monetary 14% 14% 16% 16% 69% brightness Over 3,0
Slide 14: LCD Projectors (2) Product portfolio
2-3 Video related products and components business : LCD Projectors (2) Capture No. 1 share with product and Business strategy sales strategy suited to each market Product portfolio Capture No. 1 share in ultra short throw Increase high-value-added products (35% in 2011) Strengthen corporate sales c
Slide 15: LCD Projectors (3)
2-4 Video related products and components business : LCD Projectors (3) Increase high-value-added products Capture No. 1 share in ultra short throw (35% in 2011) Ultra short throw: World’s smallest and lightest Built-in interactive functions (Launched in Europe in Oct. 2010) (Launched in Europe and
Slide 16: LCD Projectors (4)
2-5 Video related products and components business : LCD Projectors (4) Strengthen sales strategy Strengthen corporate sales channel in addition to educational by customer Hitachi Sales and Sales Composition Americas: Strengthen relationships with major SIs 640 (Thousand units) 540 For education 410
Slide 17: Optical Storage (1) Target
2-6 Video related products and components business : Optical Storage (1) Target Maintain No. 1 share, ensure earnings by bolstering cost competitiveness No. 1 share Share 35% 35% in units 34% 34% Figures in square brackets [ ] [315] are previous plan figures [310] (Million units) [300] 331 (as of FY
Slide 18: Optical Storage (2) Strengthen product competitiveness
2-7 Video related products and components business : Optical Storage (2) Increase optical storage (ODD) share Business strategy Quickly create competitive storage products for new fields Strengthen product competitiveness Strengthen cost competitiveness (Reduce cost of parts and components, lower ma
Slide 19: Flat-panel TV Business (1) Targets
2-8 Flat-panel TV Business (1) Rigorously practice low-risk management in step with rapidly declining demand in Japan Targets Mar. 2011 Eco-points program finished Jul. 2011 Analog broadcasting ends in Japan Figures in square brackets [ ] are previous plan figures (as of 2010) [6.7] [7.5] Share 6.0%
Slide 20: Flat-panel TV Business (2)
2-9 Flat-panel TV Business (2) Structure the business model based on low-risk management Business strategy and a focus on distinctive technologies Take a low-risk management approach by utilizing procurement Focus development on distinctive energy-saving and high image quality technologies Strengthe
Slide 21: Targeting Growth Fields: Eco-friendly Living Infrastructure Business
2-10 Targeting Growth Fields : Eco-friendly living Infrastructure Business Launch HEMS business applying network technology to Target environmental needs For retailers with multiple stores Launch secure home electricity (From July 2011) type HEMS business Power consumption (Visualization) Effectivel
Slide 22: Digital Media Business Strategy Contents
Digital Media Business Strategy Contents 1. Business Overview 2. Business Policy and Growth Strategy 3. Management Targets © Hitachi, Ltd. 2011. All rights reserved.
Slide 23: Revenues and Operating Income Ratio
3-1 Revenues and Operating Income Ratio Operating income ratio [1.8%] [1.6%] [0.5%] 1.0% (0.2%) (1.7%) (2.9%) Revenues Index 418.9 [385.0] [380.0] 386.0 [380.0] 100 360.0 (Billion yen) Flat-panel 340.0 TVs* 54 Video related products and 100 114 components FY2009 FY2010 FY2011 FY2012 © Hitachi, Ltd.
Slide 24: FY2010 Performance (Actual)
3-2 FY2010 Performance (Actual) (Billion yen) FY2009 (Actual) FY2010 (Actual) (YoY) Revenues 418.9 386.0 92 Video related products and components 262.5 272.3 104 Flat-panel TVs 112.4 112.7 100 Operating income ratio (2.9 ) (0.2 ) +2.7% LCD projectors: Video related Maintain revenue on growing demand
Slide 25: FY2011 and FY2012 Results (Plan)
3-3 FY2011 and FY2012 Results (Plan) (Billion yen) FY2011 YoY FY2012 YoY Revenues 340 88% 360 106% Video related products and components 270 100% 300 109% Flat-panel TVs 70 62% 600 86% Operating income ratio (1.7%) -1.5% 1.0% +2.7% LCD projectors: Video related Expand by boosting sales to corporatio
Slide 26: FY2012 Management Targets
3-4 FY2012 Management Targets Overseas Operating Revenues revenue ratio income ratio FY2010 ¥386.0 billion 67% (0.2%) FY2012 ¥360 billion 78% 1.0% Video related products and components business Create global No.1 businesses in optical storage and LCD projectors Flat-panel TVs Structure the business
Slide 27: 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 28: HITACHI Inspire the Next
HITACHI Inspire the Next
Slide 29: Hitachi Appliances Business Strategy
Hitachi Appliances Business Strategy Hitachi IR Day 2011 June 16, 2011 Haruki Yamamoto President and Director Hitachi Appliances, Inc. © Hitachi, Ltd. 2011. All rights reserved.
Slide 30: Hitachi Appliances Business Strategy Contents
Hitachi Appliances Business Strategy Contents 1. Business Overview 2. Market Trends and Growth Strategy 3. Business Performance Trends © Hitachi, Ltd. 2011. All rights reserved.
Slide 31: Position of Hitachi Appliances Within Hitachi Group
1-1 Position of Hitachi Appliances Within Hitachi Group FY2010 consolidated revenues Sales Composition of ¥9,315.8 billion* Digital Media & Consumer [ ]: Composition ratio (%) Products Financial Services [4] Information & Composi- Others Breakdown Revenues Telecommunication tion ratio [7] Systems [1
Slide 32: Business Overview
1-2 Business Overview New environment fields Hitachi Appliances is the corporations of Home appliances and Air conditioning Responsible for social and living infrastructure in Hitachi Group Home use FY2010 Market environment Consolidated revenues Growing market of Increased interest in Emerging econ
Slide 33: Air Conditioning Business Product Lineup
1-3 Air Conditioning Business Product Lineup Support comfortable air-conditioned environments in a broad range of fields, from home use to commercial use Industrial use Commercial use (Shops, buildings, etc.) Home use Packaged air Absorption & Room air conditioners conditioning systems centrifugal c
Slide 34: Home Appliances Business Product Lineup
1-4 Home Appliances Business Product Lineup Support safe, comfortable living with a variety of energy-saving home appliances Electrical home appliances New environment fields Lighting business (Merged in October 2010) Refrigerators Washing machines Vacuum cleaners IH cooking heaters LED lamps EcoCut
Slide 35: Hitachi Appliances Business Strategy Contents
Hitachi Appliances Business Strategy Contents 1. Business Overview 2. Market Trends and Growth Strategy 3. Business Performance Trends © Hitachi, Ltd. 2011. All rights reserved.
Slide 36: Market Trends
2-1 Market Trends Air Conditioning Global Market Data for: Japan, Asia, Middle East, Europe, Russia Market Growth by Area Hitachi estimate Africa, North America, Central and (Trillion yen) South America, Oceania Area 2010-2015 CAGR *Packaged air conditioning systems 5.1% + room air conditioners Japa
Slide 37: Hitachi Appliances Target Growth Strategy for 2015
2-2 Hitachi Appliances Target Growth Strategy for 2015 Consolidated revenues Vision (Billion yen) A corporation that contributes 655 650 to the global environment [45%] 600 560 550 [35%] Overseas revenues 502.6 Consolidated revenues [Overseas revenue ratio] 500 [32%] Domestic revenues FY2010 FY2012
Slide 38: Hitachi Appliances Target Growth Areas
2-3 Hitachi Appliances Target Growth Areas Business expansion Basic policies Develop new Promote local production environment fields for local consumption New fields All-electric housing Execute premium strategy LED lighting Solar power generation (Cooperation with Hitachi Consumer Marketing) Existi
Slide 39: Global Business Expansion (1) Locations
2-4 Global Business Expansion (1) Locations * The Qingdao manufacturing company is an equity-method affiliate China Qingdao, Shanghai, Wuhu, Guangzhou, Hong Kong China (Manufacturing, sales) (Manufacturing, sales) India Taiwan France (Manufacturing, (Manufacturing, (Sales) sales) sales) Middle East
Slide 40: Global Business Expansion (2)
2-5 Global Business Expansion (2) Background to global business development India Brazil Thailand Hitachi Home & Life Hitachi Air Conditioning Hitachi Consumer Products Solutions (India) Ltd. Products Brazil, Ltd. (Thailand), Ltd. 1999 Acquired 1972 Acquired 12 years 39 years 1970 established 41 yea
Slide 41: Global Business Expansion (3) Basic Strategy
2-6 Global Business Expansion (3) Basic Strategy Market Expanding demand centered on emerging economies Entered markets from an early stage and Air have manufacturing and sales offices conditioning Hitachi in India, Brazil, and China Appliances’ Home appliances have manufacturing base strengths Home
Slide 42: Global Business Expansion (4)
2-7 Global Business Expansion (4) Air conditioning business strategy (1) Expand business leveraging existing base infrastructure India: home use + commercial use Brazil: commercial use + home use China: home use + commercial use + absorption and centrifugal chillers (2) Expand business leveraging ho
Slide 43: Global Business Expansion (5)
2-8 Global Business Expansion (5) Home appliance business strategy (1) Expand business mainly using manufacturing base in Thailand Aggressively expand business in Southeast Asia, the Middle East, and North Africa (2) Increase premium home appliances made in Japan Expand sales in major cities of Chin
Slide 44: Develop New Environment Fields
2-9 Develop New Environment Fields Hitachi Appliances New Environment Fields ¥75 billion ¥50 billion Expand solar power generation business Strengthen alliance with Solar Frontier Work with Hitachi Revenues* Expand LED lighting business Group ¥34 billion Expand business by enhancing product companie
Slide 45: Key Initiatives in Japanese Home Appliance Market
2-10 Key Initiatives in Japanese Home Appliance Market —5 Main Products* *Electrical home appliances (5 main products) Hitachi share (Refrigerators, washing machines, vacuum cleaners, microwave ovens, 27 28 rice cookers) 24 Source: JEMA (Terms of monetary shipping amounts) 23 (%) 21 18 +7 points 17
Slide 46: Hitachi Appliances Business Strategy Contents
Hitachi Appliances Business Strategy Contents 1. Business Overview 2. Market Trends and Growth Strategy 3. Business Performance Trends © Hitachi, Ltd. 2011. All rights reserved.
Slide 47: Business Performance Trends
3-1 Business Performance Trends Operating income ratio 2.7 2.2 1.9 Figures in square brackets [ ] are [2.7] previous plan figures (as of FY2010) 0.9 [1.9] (%) [1.0] (0.8) 560 540 Revenues 502.6 [510] [540] 483.8 [490.0] (Billion yen) 445.7 Air conditioning Home appliances FY2008 FY2009 FY2010 FY2011
Slide 48: FY2010 Business Performance (Actual)
3-2 FY2010 Business Performance (Actual) FY 2010 Business Performance (Billion yen) FY2009 (Actual) FY2010 (Actual) YoY Revenues 445.7 502.6 +13% Air conditioning business 234.0 266.6 +14% Home appliances business 211.7 236.0 +11% Overseas revenue ratio 33% 32% -1% Operating income ratio 0.9% 2.2% +
Slide 49: FY2011 Business Performance Plan
3-3 FY2011 Business Performance Plan FY2011 Business Performance Plan (Billion yen) Previous plan (as of FY 2010) Current plan Revenues 510 540 Air conditioning business 270 290 Home appliances business 240 250 Overseas revenue ratio 33% 35% Operating income ratio 1.9% 1.9% Issues Current status Neg
Slide 50: Targets for FY2012 and FY2015
3-4 Targets for FY2012 and FY2015 FY2012 Targets FY2015 Targets Revenues: ¥560 billion Revenues: ¥655 billion Overseas revenue ratio: 35% Overseas revenue ratio: 45% Operating income ratio: Operating income ratio: 5.0% 2.7% Growing market of emerging economies A corporation that contributes to the I
Slide 51: 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 52: HITACHI Inspire the Next
HITACHI Inspire the Next