Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (November 2023)
16 slides from Hitachi's investor day presentation, Nov 13, 2023
Slide 1: Hitachi Energy Investor Days 2023: CFO Perspective
Hitachi Energy Investor Days 2023 CFO Perspective – a high value creating business driven by market leading growth and strong performance Ismo Haka CFO Hitachi Energy Hitachi Energy - Hitachi a – Energy Advancing Advancing sustainableaenergy sustainable energy future future for all for all 1
Slide 2: Historically flat T&D market now seeing rapid acceleration driven by energy transition
Historically flat T&D market now seeing rapid acceleration driven by energy transition Hitachi Energy market1 outlook Outlook2 Market actuals 6-9% p.a. Key drivers FY21-30 Electrification and C-19 dip demand growth Renewables transition Macro & regulatory environment Aging infrastructure 2015 2016 2
Slide 3: Actions in place to address the market dynamics and capture opportunities
Actions in place to address the market dynamics and capture opportunities Tailwinds Headwinds Macro conditions demand drivers supply conditions • Government and societal commitment • Volatile economies • Volatility and longer lead time in • Growth in renewables & electrification • Inflation and high
Slide 4: Positive development driven by market and proactive actions
Positive development driven by market and proactive actions Orders, BUSD Order backlog, BUSD Revenue, BUSD Adj. EBITA %, ROIC2 % Standalone1 Standalone1 ~30% p.a. ~40% p.a. ~15% p.a. +3.1 p.p. 3 ~40% p.a. +5.0 p.p. 15-20% 35-40% 15-18% 4 ~9.2% ~15% 17 10 10 7.1% 12% 20 12 6.1% 10% 14 FY FY FY 2023 F
Slide 5: Growing backlog with higher margin securing continued revenue and profitability growth
Growing backlog with higher margin securing continued revenue and profitability growth De-risking of business Enhanced Terms & Improved order backlog model Conditions (T&C) gross margin Order backlog (OBL) conversion to revenue, BUSD Improved visibility from 3 years to 5+ years Illustrative, as of S
Slide 6: Hitachi Energy 2030
We continue to drive profitable and sustainable growth Hitachi Energy 2030 Purpose-driven strategic growth plan Strengthen and Transition Accelerate Sustainable growth Expand 2021 2024 2027 2030 Operational efficiency: new global ERP, global HR Further advance the digital transformation, e.g., real-
Slide 7: We have streamlined the business and we are well positioned for growth
We have streamlined the business and we are well positioned for growth Improved Business model, performance and Enablers Investing for growth collaboration & Building synergies resilience innovation Increasing size and Operational excellence Expand capacity and Partnerships ecosystem Energy + Digita
Slide 8: Driving improved performance and resilience
Driving improved performance and resilience Improved performance 01 and resilience 02 Enablers Example: Transformers Example: across the portfolio Action taken across various levers, e.g., global footprint, vertical Operational excellence, supply-chain savings, productivity, digital core integration
Slide 9: Investing for growth – Global footprint, manufacturing and engineering
Investing for growth – Global footprint, manufacturing and engineering 03 Investing for growth Manufacturing Engineering New factory: Bac Ninh, Vietnam Expansion: Dosquebradas, New factory: Bangalore, India Colombia • 2,500+ technologists across business and functions in one campus • Extensive capab
Slide 10: We are introducing new collaboration models and building synergies
We are introducing new collaboration models and building synergies Business model, collaboration 04 & innovation 05 Building synergies Example: TenneT Framework Agreement Example: Digital & IT synergies First multi-project framework agreement and capacity reservation, ERP harmonization, Workday enab
Slide 11: Digital and IT transformation as enablers for growth and synergies
Digital and IT transformation as enablers for growth and synergies 02 Enablers 03 Investing for growth 05 Building synergies Digitalization initiatives overview Related cost1 – illustrative S4/HANA Deploying a new global ERP Workday Adopting a common HR platform ~80% ~90% Other IT build-up, applicat
Slide 12: Our profitable and sustainable growth journey
Our profitable and sustainable growth journey Significant topline growth with improved margins Drivers of profitable growth Adj. EBITA %, Standalone1, illustrative Volume growth, supported by Up Down backlog execution 12% 10% Gross margin accretion, supported by backlog margin 8% and improved risk p
Slide 13: Hitachi Energy | Ambition 2024
Hitachi Energy | Ambition 2024 Revenues, BUSD Adj. EBITA %, Standalone1 ROIC2 %, Standalone1 12% 12-15% p.a. ~15% 10% 8% 10% 10 6.1% FY 2021 FY 2024 FY 2021 FY 2024 FY 2021 FY 2024 Sustaining industry leadership in performance Continue to grow above market and sustain margins, at upper end of range
Slide 14: Key takeaways
CFO Perspective Key takeaways Energy transition driving accelerated investments, enabling long-term 01 profitable and sustainable growth opportunities Active investments and portfolio management, continue shaping business 02 model to capture market opportunities in line with Hitachi Energy 2030 plan
Slide 15: Hitachi Energy
@ Hitachi Energy
Slide 16: Hitachi: Inspire the Next
HITACHI Inspire the Next