Hitachi, Ltd. · TSE:6501

Hitachi — Hitachi Ltd Ord — Q2 2024 Earnings Presentation

25 slides from Hitachi's earnings presentation, Oct 30, 2024

  1. Slide 1: Outline of Consolidated Financial Results for the Second Quarter Ended September 30, 2024

    Outline of Consolidated Financial Results for the Second Quarter Ended September 30, 2024 [Fiscal 2024] October 30, 2024 Tomomi Kato Senior Vice President and Executive Officer, CFO Hitachi, Ltd. © Hitachi, Ltd. 2024. All rights reserved.

  2. Slide 2: Contents

    Contents 1. Key Messages 2. Q2 FY2024 Results 3. FY2024 Forecasts 4. Performance by Business Segment 5. Appendices © Hitachi, Ltd. 2024. All rights reserved. 1

  3. Slide 3: 1. Key Messages

    1. Key Messages © Hitachi, Ltd. 2024. All rights reserved. 2

  4. Slide 4: Key Messages

    Key Messages Revenues and profits increased in Three Sectors. DSS benefited from the tailwind of Q2 FY24 DX/modernization in the Japanese IT market, while GEM performed well with renewal demand Results for power grid facilities, in addition to renewable energy, and data center-related solutions +11%

  5. Slide 5: Major topics

    Major topics Capture megatrends (mainly DSS・GEM) for continuous growth trends H1 FY24 Business performance bn yen Order YoY Revenues YoY Adj. EBITA / % YoY 1 DSS 1,522.2 +9% 1,312.4 +10% 169.1 / 12.9% +34.1 +1.6 pts GEM 3,115.4 +42% 1,785.7 +33% 152.9 / 8.6% +73.2 +2.7 pts Q2 FY24 Order backlog DSS

  6. Slide 6: 2. Q2 FY2024 Results

    2. Q2 FY2024 Results © Hitachi, Ltd. 2024. All rights reserved. 5

  7. Slide 7: Highlights of Results (Q2 FY24)

    Highlights of Results (Q2 FY24) • Three Sectors (excl. Hitachi Astemo) achieved revenue growth (YoY +11%) and Adj. EBITA increase (YoY: +46.5 billion yen, +23%), leading to improved profitability • In Consolidated Total, profits decreased YoY mainly due to equity in loss of Hitachi Astemo • Core FCF

  8. Slide 8: Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (Q2 FY24)

    Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (Q2 FY24 Consolidated Total) Revenues Billions of yen 2, . ＋45.0 .2 2, 4. . 4 .0 ⊕ Hitachi Energy ⊕ Front Business (Digital Systems & Services) ⊕ IT services (Digital Systems & Services) Q2 FY23 Divestiture of Acquisition of Foreign

  9. Slide 9: Financial Position and Cash Flows

    Financial Position and Cash Flows Summary of Consolidated Financial Position As of As of Difference from Billions of yen March 31, 2024 September 30, 2024 March 31, 2024 Total assets 12,221.2 12,568.6 +347.3 Cash and cash equivalents 705.3 794.2 +88.8 Trade receivables and contract assets 2,991.3 3,

  10. Slide 10: Regional revenues (Q2 FY24)

    Regional revenues (Q2 FY24) ASEAN, North Overseas Japan Europe China India, other Other areas America revenues Billions of yen areas Digital Systems & 460.0 91.8 55.4 8.1 49.0 13.8 218.3 Services YoY +8% +6% (6)% (10)% (5)% (1)% (1)% Green Energy & 95.2 201.5 332.1 52.4 75.2 144.7 806.2 Mobility YoY

  11. Slide 11: Orders Results by Business Segment (Q2/H1 FY24)

    Orders Results by Business Segment (Q2/H1 FY24) Billions of yen Q2 FY24 YoY H1 FY24 YoY Q2 FY24 YoY H1 FY24 YoY Digital Systems & Connective Services 647.1 (3)% 1,522.2 +9% Industries 777.9 (1)% 1,519.8 (2)% Front Business Building Systems 254.2 (11)% 717.7 +9% 223.8 (9)% 440.2 (9)% IT Services Smar

  12. Slide 12: 3. FY2024 Forecasts

    3. FY2024 Forecasts © Hitachi, Ltd. 2024. All rights reserved. 11

  13. Slide 13: Highlights of Forecasts (FY24)

    Highlights of Forecasts (FY24) • Three Sectors was revised upward by 150.0 bn yen in revenues and 19.5 bn yen in Adj. EBITA • In Consolidated Total, profits were unchanged from the previous forecast mainly due to equity in loss of Hitachi Astemo • Almost all KPIs of the Mid-term Management Plan 2024

  14. Slide 14: Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (FY24)

    Factors Affecting Year over Year Changes in Revenues and Adj. EBITA (FY24 Consolidated Total) Revenues Billions of yen , 2 . 2 .4 , 0.0 2 .2 ＋20.0 , 4. ⊕ Hitachi Energy ⊕ Front Business (Digital Systems & Services) ⊕ IT services (Digital Systems & Services) FY23 Divestiture of Acquisition of Foreign

  15. Slide 15: 4. Performance by Business Segment

    4. Performance by Business Segment © Hitachi, Ltd. 2024. All rights reserved. 14

  16. Slide 16: Performance by Business Segment (DSS)

    Performance by Business Segment (DSS) Q2 FY24 YoY FY24 Forecasts YoY vs Previous Forecasts Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Digital Systems 678.3 90.7 +5% +8.1 2,800.0 378.0 +8% +44.5 ±0% ±0.0 & Services 13.4% [+4%] (

  17. Slide 17: Performance by Business Segment (GEM)

    Performance by Business Segment (GEM) Q2 FY24 YoY FY24 Forecasts YoY vs Previous Forecasts Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Green Energy 901.4 67.0 +26% +30.4 3,630.0 315.0 +19% +115.8 +4% +13.0 & Mobility 7.4% [+22%]

  18. Slide 18: Performance by Business Segment (CI)

    Performance by Business Segment (CI) Q2 FY24 YoY FY24 Forecasts YoY vs Previous Forecasts Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Revenues Adj. EBITA Connective Industries 780.9 87.7 +2% +9.8 3,150.0 361.0 +3% +40.3 ±0% ±0.0 11.2% [±0%](*) +1.1

  19. Slide 19: Lumada Business

    Lumada Business Lumada business revenues(*) c.16% Lumada business ratio Billions of yen (*) Excluding Hitachi Astemo c.15% 2,750.0 Revenues 30% Adj. EBITA 41% 720.0 (YoY +18%) 27% (YoY +25%) 2,334.0 39% 310.0 26% 1,050.0 9,150.0 38% 83.0 8,564.3 867.4 577.0 284.0 620.0 7,638.2 69.0 178.0 724.8 553.0

  20. Slide 20: 5. Appendix

    5. Appendix © Hitachi, Ltd. 2024. All rights reserved. 19

  21. Slide 21: Performance by Business Segment (Consolidated Total)

    Performance by Business Segment (Consolidated Total) vs Previous Q2 FY24 YoY H1 FY24 YoY FY24 Forecasts YoY Forecasts Reven Adj. Reven Adj. Reven Adj. Reven Adj. Reven Adj. Reven Adj. Reven Adj. Billions of yen ues EBITA ues EBITA ues EBITA ues EBITA ues EBITA ues EBITA ues EBITA Digital 678.3 90.7

  22. Slide 22: Summary of Consolidated Statement of Profit or Loss

    Summary of Consolidated Statement of Profit or Loss vs Previous Q2 FY23 Q2 FY24 YoY H1 FY23 H1 FY24 YoY FY23 FY24 YoY Billions of yen Forecasts Revenues 2,637.5 2,334.5 (11)% 4,960.0 4,545.9 (8)% 9,728.7 9,150.0 (6)% +2% Adj. Operating Income 194.9 207.1 +12.1 325.4 404.7 +79.2 755.8 875.0 +119.1 +2

  23. Slide 23: Notes

    Notes Item Contents Three sectors Consolidated Total less equity in earnings of Hitachi Astemo as an affiliated company and consolidated figures of Hitachi (excl. Hitachi Astemo) Astemo prior to be accounted for using the equity method, includes "Others" and "Corporate items & Eliminations" DSS / GE

  24. Slide 24: 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

  25. Slide 25: Hitachi Social Innovation is POWERING GOOD

    i Hitachi Social Innovation is 2 POWERING GOOD « . e . . ee @eer*,

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