Slide 1: Hitachi Energy
Hitachi Energy October 30, 2024 Andreas Schierenbeck Senior Vice President and Executive Officer, Hitachi, Ltd. CEO, Power Grids Business Unit, Hitachi, Ltd. CEO, Hitachi Energy © Hitachi, Ltd. 2024. All rights reserved.
Slide 2: Today's focus
01 01 Strong market momentum Today’s 02 Hitachi Energy journey focus 03 Priorities and ambition © Hitachi, Ltd. 2024. All rights reserved. 2
Slide 3: CEO background and international energy experience
Electrical Engineer International experience across the Energy Value Chain & Industry Power Generation and Trading incl. conventional, low-carbon fuels, nuclear, green hydrogen, renewables Global T&D1 experience as utility CEO, OEM & operator Rich experience driving Service and Digital transformatio
Slide 4: Energy challenges of our time – we need to...
Energy challenges of our time – we need to... Reduce carbon emissions Secure energy supply Meet the increased demand 4
Slide 5: Decarbonization is driving electrification & demand increase
Decarbonization is driving electrification & demand increase Electrification Green molecules such as hydrogen, biofuels… Electric Electric Heating/Cooling of Arc furnaces for International Chemical, buses trains Buildings & Households recycled steel transportation Steel etc. Short-haul flights Elect
Slide 6: Renewables are the cheapest & fastest way to meet the demand
Renewables are the cheapest & fastest way to meet the demand Power Geographical location & Shetland generation: volatility underpin the Islands importance of the grid Solar / Onshore & Offshore Wind Norway ~1-7 years SMR1 ~10 years Nuclear power reactors Denmark ~15 years One example: the UK & Irela
Slide 7: The global energy supercycle will continue ~20 years
The global energy supercycle will continue ~20 years IEA Report: Length of planning horizons1 US FERC2 Rule 1920 – Regional Transmission Policy Requiring the US transmission providers to conduct long-term transmission planning over a 20-year time horizon to anticipate future needs. “Let’s seize this
Slide 8: Hitachi Energy 2030: Purpose-driven strategic growth plan
Hitachi Energy 2030: Purpose-driven strategic growth plan Utilities – Industry – Transport and Infrastructure Strengthen the Core 01 Continuously strengthening our power grids core business Plan Build Operate and Maintain Expand Digital and Services 02 Doubling efforts on Digital and Services. Expan
Slide 9: One global SAP digital core for all locations
One global SAP digital core for all locations Automated system – No manual intervention – Harmonized data Manufacturing sites Countries of operations Headquarters in Zurich, Switzerland Enablers in place for growing & scaling at speed Live 150 ~24,000 Across 60 countries Harmonized global data objec
Slide 10: Investments across the globe
Investments across the globe $330M $180M Sweden Finland $255M $32M USA, Canada, Mexico Germany $250M India $87M $200M Spain Brazil Investments1 Workforce Expansion Order Backlog $9B $6B (2024-27) $3B (2020-23) >20% +15,000 >3X (Baseline 2021) ~$40B 2020-27 2020-23 2024-27 2024 2024 announcements. Al
Slide 11: Investments, Operational Excellence & Capital Efficiency
Investments, Operational Excellence & Capital Efficiency Capacity Expansions Operational Excellence Grid planning & investments needed & New business models driving current planning horizons 10-20 years standardization, FA, & CRA Visibility from Order Backlog, Framework Agreements, Derisking of busi
Slide 12: It's not enough to focus only on expansion
It’s not enough to focus only on expansion We also need to focus on the installed base 01 02 03 Capacity increase & Extend lifecycle Service business underpinned efficiencies by digital technologies 2030 Ambition #1 >3X $$ Service Provider Service Business Accretive (Extending lifecycles of custome
Slide 13: Synergies between Hitachi Energy, GlobalLogic & Hitachi Digital Services
Synergies between Hitachi Energy, GlobalLogic & Hitachi Digital Services – An unparalleled competitive advantage Combining Hitachi unique IT, OT, IoT, products, and services capabilities. Hitachi Vegetation Manager (part of Lumada Inspection Insights portfolio) AI-driven solution to predict, prevent
Slide 14: Provide market system for operating nationwide energy reserve balancing market
Provide market system for operating nationwide energy reserve balancing market1 Optimizing proven global solution for the Japanese market Contribute to efficient Synergies of IT and OT solutions Hokkaido procurement and cost supporting TSOs to handle reduction2 of balancing energy energy reserves Co
Slide 15: Growing backlog with higher margin & increased visibility of the future
Growing backlog with higher margin & increased visibility of the future – securing continued revenue & profitability growth Improved OBL GM%2 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Illustrative 1 FA & CRA1 OBL volume FY 2021 OBL 2 FA & CRA1 FY 2021 September 2024 OBL volume 1 2 Sep 2024 De-risked
Slide 16: Journey and outlook
Journey and outlook Revenues, BUSD Adj. EBITA (%), Standalone1 15 15 10.5% 10 10 6.1% FY 2021 FY 2024 Next FY 2021 FY 2024 Next Target Level2 Target Level2 Our profitable and sustainable growth journey continues… 1. Excluding related cost 2. 2030 and beyond 16 © Hitachi, Ltd. 2024. All rights reserv
Slide 17: Profitable and sustainable growth
Profitable and sustainable growth Key Takeaways Significant market tailwinds Well positioned, in attractive markets, to sustain industry leadership performance Profitable and sustainable growth Key priorities: • Become #1 Services Provider - enabled by digital • Accelerate strategic growth areas Hig
Slide 18: Q&A Advancing a sustainable energy future for all
Advancing a sustainable Q&A energy future for all
Slide 19: Hitachi – Inspire the Next
HITACHI Inspire the Next