Hitachi, Ltd. · TSE:6501

Hitachi — Hitachi Ltd Ord — Q2 2023 Earnings Presentation

25 slides from Hitachi's earnings presentation, Oct 27, 2023

  1. Slide 1: Outline of Consolidated Financial Results for the Second Quarter Ended September 30, 2023

    Outline of Consolidated Financial Results for the Second Quarter Ended September 30, 2023 [Fiscal 2023] October 27, 2023 Yoshihiko Kawamura Executive Vice President and Executive Officer, CFO Hitachi, Ltd. © Hitachi, Ltd. 2023. All rights reserved.

  2. Slide 2: Contents

    Contents 1. Key Messages 2. Q2 FY2023 Results 3. FY2023 Forecast 4. Appendix © Hitachi, Ltd. 2023. All rights reserved. 1

  3. Slide 3: 1. Key Messages

    1. Key Messages © Hitachi, Ltd. 2023. All rights reserved. 2

  4. Slide 4: Key Messages

    Key Messages Revenues: 2,096.5bn yen (YoY +13%) Results Q2 Adj. EBITA: 202.7bn yen (YoY +17.3bn yen) 1 Continuing Consolidated Revenues: 3,924.8bn yen (YoY +12%) Business H1 Adj. EBITA: 359.6bn yen (YoY +49.2bn yen) Continuing Consolidated Business forecast was revised upward Revenues: 8,000.0bn yen

  5. Slide 5: 2. Q2 FY2023 Results

    2. Q2 FY2023 Results © Hitachi, Ltd. 2023. All rights reserved. 4

  6. Slide 6: Highlights of Results (Q2 FY23)

    Highlights of Results (Q2 FY23) • Continuing Consolidated Business revenues and profits increased mainly in Digital Systems & Services and Green Energy & Mobility, despite increased revenues and decreased profits of Connective Industries due to investment restraint by semiconductor-related customers

  7. Slide 7: Q2 FY23 Results by Business Segment (1/3)

    Q2 FY23 Results by Business Segment (1/3) Q2 FY23 YoY Dynamics Billions of yen Revenues Adj. EBITA(a) Revenues Adj. EBITA Digital Systems & 646.5 82.5 +9% +14.4 • Segment revenues and profits increased Services 12.8% [+7%] (b) +1.3 pts • Front Business revenues and profits increased due to steady gr

  8. Slide 8: Q2 FY23 Results by Business Segment (2/3)

    Q2 FY23 Results by Business Segment (2/3) Q2 FY23 YoY Dynamics Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Connective 768.5 77.8 +2% (10.2) • Segment revenues increased due to sales increase mainly in Industries Building Systems BU(b) and digital solutions and products in 10.1% [+1%](a)

  9. Slide 9: Q2 FY23 Results by Business Segment (3/3)

    Q2 FY23 Results by Business Segment (3/3) Q2 FY23 YoY Dynamics Billions of yen Revenues Adj. EBITA Revenues Adj. EBITA Hitachi Astemo 541.0 27.2 +9% +10.6 • Revenues and profits increased due to moderate production 5.0% [+5%](a) +1.7 pts recovery of OEMs and solving semiconductor shortage, etc. Hita

  10. Slide 10: Factors Affecting Changes in Revenues and Adjusted EBITA (Q2 FY23 Total)

    Factors Affecting Changes in Revenues and Adjusted EBITA (Q2 FY23 Total) Revenues Billions of yen Q2 FY22 Q2 FY23 \138/US$ \145/US$ \139/€ \157/€ Adjusted EBITA Billions of yen ⊕ Changes in business scale ⊕ Selling price change ⊖ Impact of rising material prices ⊖ Structure reinforcement correspondi

  11. Slide 11: Financial Position and Cash Flows

    Financial Position and Cash Flows Summary of Consolidated Financial Position As of As of Change from Billions of yen March 31, 2023 Sep 30, 2023 March 31, 2023 Total assets 12,501.4 13,475.2 +973.7 Cash and cash equivalents 833.2 905.8 +72.5 Trade receivables and contract assets 2,874.9 2,994.9 +119

  12. Slide 12: Lumada Business

    Lumada Business Lumada business revenues(a) Lumada business ratio Lumada Non Lumada Lumada ratio Billions of yen c.15% Revenues Adjusted EBITA c.14% 2,310.0 26% 29% 38% 41% 577.0 (YoY +18%) (YoY +21%) 1,960.0 21% 270.0 7,638.2 8,000.0 26% 477.0 69.0 215.0 6,699.2 818.0 520.0 724.8 53.0 142.0 662.1 4

  13. Slide 13: 3. FY2023 Forecast

    3. FY2023 Forecast © Hitachi, Ltd. 2023. All rights reserved. 12

  14. Slide 14: Highlights of Forecast (FY2023)

    Highlights of Forecast (FY2023) • Revised upward for all profit items from the previous forecast. Continuing Consolidated Business is expected to increase YoY in both revenues and profit • Hitachi Astemo became an equity method affiliate in October 2023 • Acquisition of Thales GTS is expected to be

  15. Slide 15: Highlights of Forecast (FY2023)

    Highlights of Forecast (FY2023) Previous forecast FY2023 Forecast YoY comparison Dynamics Adj. Adj. Adj. Revenues Revenues Revenues Billions of yen EBITA(a) EBITA EBITA Digital Systems & 2,470.0 310.0 +3% +16.2 +1% +2.0 • Segment forecast was revised upward by 20.0bn yen of revenues Services (b) and

  16. Slide 16: Factors Affecting Changes in Revenues and Adjusted EBITA (FY2023 Total)

    Factors Affecting Changes in Revenues and Adjusted EBITA (FY2023 Total) Revenues Billions of yen Adjusted EBITA Billions of yen ⊕ Changes in business scale ⊕ Selling price change ⊖ Impact of rising material prices ⊖ Structure reinforcement corresponding to demand increase, etc. © Hitachi, Ltd. 2023.

  17. Slide 17: 4. Appendix

    4. Appendix © Hitachi, Ltd. 2023. All rights reserved. 16

  18. Slide 18: Highlights of Results (H1 FY23)

    Highlights of Results (H1 FY23) • Digital Systems & Services and Green Energy & Mobility revenues and profits increased. Continuing Consolidated Business revenues and profits also increased due to the absence of the impact of lockdown in China in previous fiscal year, and FX impact Continuing Decons

  19. Slide 19: Highlights of Results (H1 FY23)

    Highlights of Results (H1 FY23) H1 FY23 YoY Dynamics Billions of yen Revenues Adj. EBITA(a) Revenues Adj. EBITA Digital Systems & 1,192.5 135.0 +8% +17.5 • Segment revenues and profits increased due to expansion of Services 11.3% [+7%] (b) +0.6 pts Lumada business by harvesting digital demand Global

  20. Slide 20: Summary of Consolidated Statement of Profit or Loss

    Summary of Consolidated Statement of Profit or Loss Previous Q2 FY22 Q2 FY23 YoY H1 FY22 H1 FY23 YoY FY22 FY23 YoY forecast comparison Billions of yen Revenues 2,846.9 2,637.5 (7)% 5,416.7 4,960.0 (8)% 10,881.1 9,150.0 (16)% +4% Adjusted Operating Income 203.0 194.9 (8.1) 324.6 325.4 +0.8 748.1 720.

  21. Slide 21: Revenues by Market (H1 FY23)

    Revenues by Market (H1 FY23) ASEAN, North Overseas Japan China India, other Europe Other areas America Revenues Billions of yen areas Digital Systems & Services 774.5 16.7 96.3 165.4 111.5 27.8 417.9 YoY +11% (29)% ±0% +8% +9% +11% +4% Green Energy & Mobility 157.8 97.5 129.2 294.8 464.8 201.2 1,187

  22. Slide 22: Orders Results by Business Segment

    Orders Results by Business Segment • Firm order growth mainly in Digital Systems & Services, Hitachi Energy and Railway Systems Billions of yen Q2 FY23 YoY H1 FY23 YoY Q2 FY23 YoY H1 FY23 YoY Digital Systems & Connective Services 669.3 +15% 1,401.0 +13% Industries 783.4 (4)% 1,556.0 (2)% Front Busin

  23. Slide 23: Notes

    Notes Item Contents Continuing Consolidated Consolidated total less deconsolidated business Business Deconsolidated Business Hitachi Astemo, Hitachi Construction Machinery and Hitachi Metals Adjusted EBITA Adjusted operating income plus acquisition-related amortization and equity in earnings (losses

  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

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Hitachi Ltd Ord — Q2 2023 Earnings Presentation on 6ix