Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2012)

31 slides from Hitachi's investor day presentation, Jun 14, 2012

  1. Slide 1: Infrastructure Systems Business Strategy

    Infrastructure Systems Business Strategy Infrastructure Systems Company Hitachi Plant Technologies, Ltd. Hitachi Industrial Equipment Systems Co., Ltd. Hitachi IR Day 2012 June 14, 2012 Yutaka Saito Senior Vice President and Executive Officer, President & CEO, Infrastructure Systems Group, President

  2. Slide 2: Contents

    Infrastructure Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Policy and Growth Strategy 4. Business Performance Trends and Targets 5. Conclusion © Hitachi, Ltd. 2012. All rights reserved.

  3. Slide 3: 1-1 Infrastructure Systems Business Concept

    1-1 Infrastructure Systems Business Concept Drive Social Innovation Business, which provides social infrastructures supported by highly efficient and highly reliable IT technology Social Innovation Business Solutions and services Optimize operation and management of social infrastructure Engineering

  4. Slide 4: 1-2 Business Domains of Infrastructure Systems

    1-2 Business Domains of Infrastructure Systems Provide total solutions globally for social infrastructure Infrastructure solutions business Plant systems business Smart grids Water treatment Oil & gas Chemical plants Smart cities Smart mobility Electric control systems Transportation Intelligent wat

  5. Slide 5: Contents

    Infrastructure Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Policy and Growth Strategy 4. Business Performance Trends and Targets 5. Conclusion © Hitachi, Ltd. 2012. All rights reserved.

  6. Slide 6: 2-1 Market Trends—Expectations for Social Infrastructure

    2-1 Market Trends—Expectations for Social Infrastructure Societies experience simultaneously upgrading social infrastructure and developing large-scale urban and industrial areas Issues of Social Infrastructure Global Smart City Market Forecasts(cumulative) Source: Comprehensive Guide to Smart Citie

  7. Slide 7: 2-2 Ideal Social Infrastructure

    2-2 Ideal Social Infrastructure Realization of ecological friendly, safe, secure and comfortable society ~fusing knowledge and experience of information, control and infrastructure business~ Government Education Financial Healthcare and Medical Safe, secure and Smart industry Intelligent water syste

  8. Slide 8: 2-3 Competitive Environment

    2-3 Competitive Environment Provide total solutions fusing knowledge of IT and social infrastructure Solutions and services Components Engineering Control Information Siemens ABB IBM Collaborating Hitachi Groups in a wide range Information & Telecommunication Systems Company of business fields Infra

  9. Slide 9: Contents

    Infrastructure Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Policy and Growth Strategy 4. Business Performance Trends and Targets 5. Conclusion © Hitachi, Ltd. 2012. All rights reserved.

  10. Slide 10: 3-1 Business Policy and Growth Strategy

    3-1 Business Policy and Growth Strategy Globally provide total solutions, including operation services, by making intelligent use of IT FY2015 Growth Strategy Infrastructure Components Solutions ■ Provide optimized solutions and services for the supply and Infrastructure demand of energy Solutions ■

  11. Slide 11: 3-2 Infrastructure Solutions Business

    Infrastructure 3-2 Infrastructure Solutions Business Solutions Provide next-generation solutions and services that connect social infrastructure and people with IT  Create smart cities through Water treatment Intelligent water systems developing water treatment Transportation Smart mobility and tra

  12. Slide 12: 3-2 Solutions for Optimizing Infrastructure: Energy Supply and Demand (1)

    3-2 Solutions for Optimizing Infrastructure Energy Supply and Demand (1) Solutions Establish demand response (DR) business model to optimize power supply and demand Testing DR technology at smart grids DR through direct control in Hawaii demonstration project in Hawaii  Absorb surplus electricity (

  13. Slide 13: 3-2 Solutions for Optimizing Infrastructure: Energy Supply and Demand (2)

    3-2 Solutions for Optimizing Infrastructure Energy Supply and Demand (2) Solutions Establish a distributed energy management system with the aim of locally generating electricity and heat for local consumption Joint feasibility study business for Achievements at Sino-Singapore Tianjin Eco-City Sino-

  14. Slide 14: 3-2 Development of Infrastructure: Water Environment Solutions

    3-2 Development of Infrastructure Water Environment Solutions Solutions Intelligent water systems for effectively using water resources and improving management efficiency Effectively use treated water for reuse Application model for intelligent water systems Optimize management of water resources W

  15. Slide 15: 3-2 Realizing Smart Cities

    Infrastructure 3-2 Realizing Smart Cities Solutions Contribute to the creation of safe and secure cities, especially in regard to energy and mobility Promote demonstration projects Hitachi City future city model project EV bus operation model project ・Aim to create an industrial city-type smart city

  16. Slide 16: 3-3 Plant Systems Business

    3-3 Plant Systems Business Plant systems Provide total solutions leveraging IT, services, core technologies and components Services IT systems Pursue total solutions business, Provide plant information Business including operation and services systems for supporting operation operations and manageme

  17. Slide 17: 3-3 Providing Plant Turnkey Solutions

    3-3 Providing Plant Turnkey Solutions Plant systems Develop the water business globally, including operations and services, as a “Japanese water major” Business operation consortium model India: Dahej sea water desalination business  Develop a comprehensive water treatment business by  Plan to est

  18. Slide 18: 3-3 Expand in Growth Fields Leveraging Core Components

    3-3 Expand in Growth Fields Leveraging Core Components Plant systems Provide total oil & gas solutions extending from oil and gas fields (on land or at sea) to LNG facilities Respond to demand to reduce environmental impact leveraging core technologies Newcastle LNG Plant, Australia (Improve efficie

  19. Slide 19: 3-3 Providing Advanced Plant Information Systems

    3-3 Providing Advanced Plant Information Systems Plant systems Continue developing solutions for visualizing and extracting knowledge from information relating to plant facilities Enhance operations and maintenance Plant maintenance work management system using site information using tablet terminal

  20. Slide 20: 3-4 Components Business

    3-4 Components Business Components Provide new technologies and components for making systems and plants more intelligent and adding value Respond to need for higher reliability, Leading in the fields of energy saving, speed and capacity resource saving and materials innovation Information control p

  21. Slide 21: 3-5 Developing Global Growth Markets (1)

    3-5 Developing Global Growth Markets (1) Expand global business by promoting localization operations in growth markets Improve customer-focused management and services businesses by expanding Accelerate business development through and enhancing the sales and service alliances and M&As network Estab

  22. Slide 22: 3-5 Developing Global Growth Markets (2)

    3-5 Developing Global Growth Markets (2) Develop regionally centered on emerging countries Europe North America/ Develop regionally focused businesses, Entering into the smart grid market starting water business, in cooperation from demonstration projects, and extend into China with leading companie

  23. Slide 23: 3-5 Developing Global Growth Markets (3)

    3-5 Developing Global Growth Markets (3) Full-scale entry into the Indian market by establishing manufacturing, sales and service bases in growth markets Construction and services [Revenue Target : over 50 billion Yen (FY2015) ]  Established construction and engineering base Delhi Mumbai Industrial

  24. Slide 24: 3-5 Entering Global Growth Markets (4)

    3-5 Entering Global Growth Markets (4) Expand total solutions business deeply rooted in China [Revenue Target: over 70 billion Yen (FY2015 )] Cooperation with leading companies  Participate in sea water desalination and sewage treatment on Changxing Island in conjunction with Dalian City(Currently

  25. Slide 25: 3-6 Strengthen Business Base

    3-6 Strengthen Business Base Investment in key development areas and pursue Hitachi Smart Transformation Project  11 kW rare earth-free motor Invest 50% of R&D budgets into strategic fields development areas Investments in key Highest standard in IEC efficiency guidelines (IE4)  System operation t

  26. Slide 26: Contents

    Infrastructure Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Policy and Growth Strategy 4. Business Performance Trends and Targets 5. Conclusion © Hitachi, Ltd. 2012. All rights reserved.

  27. Slide 27: 4 Business Performance Trends and Targets

    4 Business Performance Trends and Targets 33% Revenues Operating (Billion yen) income ratio (%) Overseas ratio (%) 23% 1,000 1,000 10 17% 19% Infrastructure Solutions 790.0 Business Over 769.7 715.5 Operating 7.0% income ratio(%) 500 4.0% 4.1% 5 Plant Systems Business 2.2% Components Business 0 0 FY

  28. Slide 28: Contents

    Infrastructure Systems Business Strategy Contents 1. Business Overview 2. Market Trends 3. Business Policy and Growth Strategy 4. Business Performance Trends and Targets 5. Conclusion © Hitachi, Ltd. 2012. All rights reserved.

  29. Slide 29: Conclusion: FY2015 Targets

    5 Conclusion FY2015 Targets Revenues 1 trillion Yen Overseas revenue ratio 33% Operating income ratio over 7% Drive Social Innovation Business, which provides social infrastructures supported by highly efficient and highly reliable IT technology © Hitachi, Ltd. 2012. All rights reserved. 29

  30. Slide 30: 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

  31. Slide 31: © Hitachi, Ltd. 2012. All rights reserved.

    © Hitachi, Ltd. 2012. All rights reserved.

Hitachi — Investor Day (June 2012) on 6ix