Hitachi Ltd Ord (HTHIF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

The scheduled time has come, so we will now begin Hitachi Limited web conference on Q2 FY 2025 earnings. Thank you very much for taking time out of your busy schedule to attend today's briefing. The presentation materials are available on Hitachi Limited IR website and news release website, so please take a look. Let me introduce the three speakers. Tomomi Kato, Senior Vice President and Executive Officer, CFO. Hiroaki Ohno, Deputy General Manager, Finance Division. Shinichiro Tamai, Executive General Manager, Investor Relations Division. Mr. Kato will first explain the overview of the financial results. Please wait for a moment while we switch screens. Mr. Kato, please. First, I would like to explain the contents. I will cover the key messages followed by the results for the second quarter of Fiscal Year 2025, the outlook for Fiscal Year 2025, business segment, performance and the Lumada business in that order. First, the key points of this earnings announcement, I will begin by explaining the performance highlights. Regarding fiscal year 2025 Q2 results, in addition to consistently strong performance of the energy power grid business, the domestic IT business also grew steadily due to expanding DX demand. This led to increased revenue and profit for Hitachi's consolidated total adjusted EBITDA and quarterly profit achieved record highs. Furthermore, core free cash flows increased significantly due to increased profits. Now I will explain the five KPIs. First, excluding foreign exchange effects, revenues increased 8% year-on-year and adjusted EBITDA increased by approximately 90 billion yen year-on-year. The adjusted EBITDA margin also improved. Quarterly net profit attributable to Hitachi shareholders increased year-on-year, driven by the improvement of adjusted EB...