Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2009)
34 slides from Hitachi's investor day presentation, Jun 8, 2009
Slide 1: Information & Telecommunication Systems Strategy Briefing
Information & Telecommunication Systems Strategy Briefing June 8, 2009 Hitachi, LTD. Senior Vice President and Executive Officer President & Chief Executive Officer, Information & Telecommunication Systems Group Junzo Nakajima © Hitachi, Ltd. 2009. 2007. All rights reserved.
Slide 2: Contents
Contents １. Business Overview and Medium-Term Goals ２. Expanding High-Value-Added Businesses ３. Global Development Centered on Strong Products ４. Strengthening the Management and Business Base ５. Targeting Future Growth -Greater Focus on the Social Innovation Business ６. Conclusion © Hitachi, Ltd. 2
Slide 3: Business Overview and Medium-Term Goals
１ Business Overview and Medium-Term Goals © Hitachi, Ltd. 2009. 2007. All rights reserved.
Slide 4: Basic Management Policy in Information & Telecommunication Systems
Basic Management Policy in Information & 1-1. Telecommunication Systems Basic Management Policy Rigorous focus on market-oriented approach and profit creation Goal Establishment of stable, high profit structure Contribute to social innovation through collaborative creation with customers © Hitachi,
Slide 5: Fiscal 2008 Results
1-2. Fiscal 2008 Results Revenues Operating Income Results Overview 2 trillion ＊ ＊ yen 7% (Operating margin) Revenues (Decreased) 2,108.0 7.7％ 2,021.1 ・Lower revenues in disk array subsystems 7.1％ due to foreign exchange impact ・Services revenues declined due to 150.2 155.2 diminished IT investment,
Slide 6: Fiscal 2009 Forecast
1-3. Fiscal 2009 Forecast Revenues Operating Income FY09 Market Overview Operating margin Overseas Markets 2,108.0 7.7％ 2,021.1 7.1％ (North America and Europe) 1,904.1 Economic slowdown and increased 1,837.0 5.5％ diminished investment in aftermath of 5.0％ financial crisis 799.3 748.9 707.0 707.0 (Ch
Slide 7: Actions From Fiscal 2006 Through Fiscal 2008
1-4. Actions From Fiscal 2006 Through Fiscal 2008 Actions to Create a High-Profit Business Steadily implemented measures to （％） create a higher-profit business High １０ (Hardware) ・Structural reforms of server and Operating margin PC businesses (FY06 to FY07 ) ・Strengthen telecommunications networks
Slide 8: Medium-Term Goals and Areas to Strengthen
1-5. Medium-Term Goals and Areas to Strengthen Aiming to achieve revenues of 2 trillion yen and operating margin of 7% in fiscal 2011 recovering from a cyclical bottom in fiscal 2009 Revenues and Operating Margin Fields to Strengthen (Operating margin) 7.7％ 7％ Expand high-value-added 5.0％ businesses
Slide 9: Expanding High-Value-Added Businesses
２ Expanding High-Value-Added Businesses © Hitachi, Ltd. 2009. 2007. All rights reserved.
Slide 10: Seek to Create High-Value-Added Businesses
2-1. Seek to Create High-Value-Added Businesses Provide valuable and best solutions for customers Hitachi’s Information & Telecommunication Systems Business Consulting Add more value to the Systems integration SI businesses Platforms Add More Value to the Integrated support services Services Busines
Slide 11: Add More Value to the SI Business
2-2. Add More Value to the SI Business Work to further increase customer satisfaction, supported by strong customer reputation in entire system lifecycle Expand global consulting network ・Established business bases in 7 countries Consulting U.S., U.K., Spain, Germany, Portugal, China, India Strength
Slide 12: Add More Value to the Services Businesses
2-3. Add More Value to the Services Businesses Provide advanced service based on collaborative creation with customers and Hitachi Group’s collective strengths Outsourcing for banking companies based on an impressive track record of integrating and operating highly reliable systems “NEXTBASE”, joint
Slide 13: Hitachi's IT Service Platform Concept
2-4. Hitachi’s IT Service Platform Concept Evolution for IT service platforms that can be leveraged and eliminate the need for additional IT resources IT service platform concept From products themselves to solutions Product Platform solution Usage format ownership use Cloud (SaaS, PaaS) Strengthen
Slide 14: Platform Products Business
2-5. Platform Products Business IT platform products based on Harmonious Computing Server Business Storage Solutions Business BladeSymphony Hitachi Universal Storage Platform V z Leading-edge integrated service platform z World’s first thin-provisioning *1 for providing virtual storage capacity (200
Slide 15: Hitachi's Enterprise Cloud Business
2-6. Hitachi’s Enterprise Cloud Business Aim to provide highly reliable cloud computing services to meet any demand of social infrastructure systems High Hitachi’s Provide highly reliable cloud service platforms Degree of reliability required enterprise cloud (Plan to begin providing in the second q
Slide 16: Global Development Centered on Strong Products
３ Global Development Centered on Strong Products ©©Hitachi, Hitachi,Ltd. Ltd.2009. 2007. 2009.All Allrights rightsreserved. reserved.
Slide 17: Global Business Expansion Policy
3-1. Global Business Expansion Policy Establish on a growth track by pursuing synergies focused on strong products. Storage solutions businesses ・Expand business leveraging No. 1 share* in the enterprise storage market and unrivaled virtualization technologies Consulting businesses ・Expand business
Slide 18: Global Business - Storage Solutions Businesses
3-2. Global Business -Storage Solutions Businesses- Expand businesses leveraging No. 1 share*1 in the enterprise storage market and unrivaled virtualization technologies Achieved double-digit global growth in software & services revenues*2 (FY08) ・With rising demand for efficient systems operation,
Slide 19: Global Business - Consulting Businesses
3-3. Global Business - Consulting Businesses - Expand business in each region and cultivate targeted markets Expand business bases and establish an operation structure for providing services globally ・Europe and the U.S.: Steadily expand business and establish global response capabilities by bolster
Slide 20: Global Business - Regional Strategies
3-4. Global Business - Regional Strategies - Expand sales in Europe and the U.S., strengthen operations with strong products in emerging economies Europe and the U.S. Expand sales centered on strong products ・Storage solutions business: In addition to North America and Western Europe, strengthen ope
Slide 21: Strengthening the Management and Business Base
４ Strengthening the Management and Business Base © Hitachi, Ltd. 2009. 2007. All rights reserved.
Slide 22: Strengthening the Business Structure
4-1. Strengthening the Business Structure Create a leaner business structure Approach From FY06 to 1H FY08 Strengthen structure in line with business growth strategy Improve break-even margin 7% Operating margin 2 trillion yen Revenues Break-even margin Forecast at previous presentation (November 20
Slide 23: Strengthen Business Structure
4-2. Strengthen Business Structure Create a leaner business structure ⇒ achieve a V-shaped recovery from fiscal 2010 Approach From FY06 to 1H FY08 Management Policy From 2H FY08 to FY09 Strengthen structure in line with Maintain workforces and R&D investment, towards V-shaped recovery business growt
Slide 24: Strengthen Consolidated Group Management
4-3. Strengthen Consolidated Group Management Increase value on a consolidated basis by leveraging business synergies Reorganization Strengthen proposal capabilities and systems integration capabilities related to next-generation networks ・Merger with Hitachi Communication Technologies, Ltd. to stre
Slide 25: Strengthen MONOZUKURI
4-4. Strengthen MONOZUKURI System Solutions Earn customer trust and increase satisfaction by achieving the highest quality Reform project management to increase Project success rate Hitachi standard: Maintain quality, cost and delivery customer satisfaction timeframe according to plan for projects r
Slide 26: Creating an Organization Where it Is Rewarding to Work
4-5. Creating an Organization Where it Is Rewarding to Work Workstyle Reform Change perspective, approach and mindset ・Change way of working (work actively) ES CS MONOZUKURI Reform in Production CSR M3 (M cube) Innovation 「MONOZUKURI X Manufacture X Motivation」 Profit ・Promote small group activities
Slide 27: Targeting Future Growth - Greater Focus on the Social Innovation Business
５ Targeting Future Growth -Greater Focus on the Social Innovation Business © Hitachi, Ltd. 2009. 2007. All rights reserved.
Slide 28: Heightened Focus on the Social Innovation Business
5-1. Heightened Focus on the Social Innovation Business st Hitachi will drive social innovation in the 21 century, “The century of the environment, information and energy” Strong relationships with social infrastructure companies Strengths The ability to build mission-critical systems Established th
Slide 29: Environment - Green IT
5-2. Environment - Green IT - Power-saving of IT equipments, Eco-friendly datacenters and Green by IT, utilizing Hitachi Group’s collective expertise Green of IT Eco-friendly Green by IT Datacenter Project IT Power-saving Plan Power-savings at the Power-saving of the holistic Visualization of enviro
Slide 30: Energy - Smart Grids - IT
5-3. Energy - Smart Grids - Promote R&D of IT platforms for supporting smart grids ・Contribute to the creation of an optimal electricity infrastructure in an age of diversification of electricity sources ・Build a platform for delivering new services utilizing information and network infrastructure,
Slide 31: Transportation - Next-Generation Transportation Systems
Transportation 5-4. - Next-Generation Transportation Systems - Promote R&D into IT platforms that help create customer services ・Pursue highly reliable systems for supporting safe, comfortable and convenient transportation systems ・Research IT platforms for creating more sophisticated services Creat
Slide 32: Conclusion
６ Conclusion © Hitachi, Ltd. 2009. 2007. All rights reserved.
Slide 33: Conclusion
6. Conclusion Aiming to achieve revenues of 2 trillion yen and operating margin of 7% in fiscal 2011 Contribute to social innovation through collaborative creation with customers Expand high-value-added Expand businesses globally businesses Strengthen the management Greater focus on the Social and b
Slide 34: 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