Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2014)
31 slides from Hitachi's investor day presentation, Jun 12, 2014
Slide 1: Healthcare Business Strategy
Healthcare Business Strategy Hitachi IR Day 2014 June 12, 2014 Masahiro Kitano Senior Vice President and Executive Officer President & CEO of Healthcare Group and Healthcare Company Hitachi, Ltd. © Hitachi, Ltd. 2014. All rights reserved.
Slide 2: Contents
Healthcare Business Strategy Contents 1. Business Overview 2. Market Environment 3. Hitachi’s Mission and Business Strategy 4. Business Performance Trends 5. Conclusion © Hitachi, Ltd. 2014. All rights reserved.
Slide 3: Business Overview: Reorganization of Healthcare Business
1. Business Overview [Reorganization of Healthcare Business] Established the Healthcare Group (as of April 1, 2014) Healthcare Business Strategy Division Integrate resources Information & Telecommunication Hospitals/Providers Systems Group Healthcare Healthcare IT Group Power Systems Group (Approx P
Slide 4: Business Overview: Healthcare Related Solutions
1. Business Overview [Healthcare Related Solutions] Diagnostic Equipment Healthcare IT Research institutes Hospitals l Data platform services Ultrasound MRI l Preventive services l Solutions for hospitals and community healthcare 17% Healthcare IT Clinic Clinic X-ray Clinic CT 6% FY2013 Therapy Reve
Slide 5: Contents
Healthcare Business Strategy Contents 1. Business Overview 2. Market Environment 3. Hitachi’s Mission and Business Strategy 4. Business Performance Trends 5. Conclusion © Hitachi, Ltd. 2014. All rights reserved.
Slide 6: Market Trends
2-1. Market Trends (1) Relationship between the GDP and medical expense of various countries 2020 Trends in Industrialized nations Medical expense / GDP U.S. 2010 2005 Industrialized Nations n Increase in medical expenses 15 15 n Aging populations and an increased incidence of France Germany chronic
Slide 7: Competitive Environment
2-2. Competitive Environment 2.5 2.5 FY2018 FY2015 C D 2.0 2.0 FY2013 Trends at other companies Revenue (trillion yen) 1.5 1.5 B n Strengthening links between diagnostic and therapy 1.0 1.0 Hitachi equipment n Raising efficiency using 0.5 0.5 A healthcare IT 0.0 0.0 A – D : Competitors 00 55 10 10 1
Slide 8: Contents
Healthcare Business Strategy Contents 1. Business Overview 2. Market Environment 3. Hitachi’s Mission and Business Strategy 4. Business Performance Trends 5. Conclusion © Hitachi, Ltd. 2014. All rights reserved.
Slide 9: Hitachi's Mission for Healthcare
3-1. Hitachi’s Mission for Healthcare Satisfying the diversified healthcare needs at all stages of the entire care cycle through IT and medical technologies Healthcare Prevention Screening Therapy Prognosis care cycles & & & & Checkup Diagnosis Treatment Elderly care IT & Medical technology Logistic
Slide 10: Healthcare Business Strategy
3-2. Healthcare Business Strategy Healthcare needs Hitachi’s activities Healthcare IT Optimize the medical costs Hospital and community healthcare solutions Advanced healthcare Therapy equipment Improve the quality of hospitals and community healthcare Diagnostic equipment © Hitachi, Ltd. 2014. All
Slide 11: Healthcare IT [1]
3-3.(1) Healthcare IT [1] n Japan: Effective use of data from health insurance societies Optimize medical costs based on the “Data Health Plan” Improve the quality of n U.K.: Effective use of healthcare data by the NHS, as a world hospitals and community leader in primary care healthcare n U.S.: Mea
Slide 12: Healthcare IT [2] Data platform service
3-3.(1) Healthcare IT [2] [Data platform service] l Providing services by linking and safely storing various types of healthcare data l Optimize storage using a tiered archive to achieve both rapid search speeds and cost effectiveness Core hospital Data center Vendor -neutral archive Compatible with
Slide 13: Healthcare IT [3] Preventive services
3-3.(1) Healthcare IT [3] [Preventive services] l Considering various factors (BMI*1, Glucose level, etc ), latent patterns and regularity in the data to automatically come up with associated disease incidence rates and medical costs. l Verified to estimate prospective medical costs of 110 thousands
Slide 14: Healthcare IT [4] Preventive services
3-3.(1) Healthcare IT [4] [Preventive services] l Diet program: Metabolic syndrome alleviation rate of over 70%*1, medical cost savings of around 28,000 yen per person*2 Diet program: A lifestyle guidance program for n Expansion of diet program services patients at risk of contracting diabetes in th
Slide 15: Hospital and Community Healthcare Solutions [1]
3-3.(2) Hospital and Community Healthcare Solutions [1] l Provide services that optimize the entire care cycle in community healthcare l Expand services globally in India, China, Vietnam and other countries based on the track record in Japan Hitachi’s solutions(support for hospital Anticipated benef
Slide 16: Hospital and Community Healthcare Solutions [2] ESCO
3-3.(2) Hospital and Community Healthcare Solutions [2] [ESCO] l Total outsourcing of hospital energy supply and facility operations and management l Hitachi will own the utility facilities and will supply the necessary amount of steam and cold and hot water for air conditioning and power Packaged e
Slide 17: Therapy Equipment [1]
3-3.(3) Therapy Equipment [1] Advanced Expansion of demand for non-invasive or minimally invasive treatments healthcare mainly for seniors and child cancer patients Specific activities Orders & Revenue forecast (billion yen) (1) Particle beam therapy business Revenue CAGR 11.2% n High-precision spot
Slide 18: Therapy Equipment [2]
3-3.(3) Therapy Equipment [2] l Offer a range of devices effective for cancer treatment from X-ray therapy equipment to particle (proton and heavy ion) beam therapy systems l Orders received from 11 organizations around the world (Japan, North America, etc.) Spot scanning Reduce the size of therapy
Slide 19: Diagnostic Equipment [1]
3-3.(4) Diagnostic Equipment [1] Optimize medical costs n Improve healthcare quality while keeping total medical costs low Advanced healthcare Improve hospitals and n Increased demand for developing healthcare infrastructure in community healthcare emerging countries Specific activities Revenue fore
Slide 20: Diagnostic Equipment [2]
3-3.(4) Diagnostic Equipment [2] l Expand the scope of application of ultrasound systems that hold a No. 1 share in Japan l Expand the scope of treatment of open MRI systems that hold a No. 1 share worldwide Ultrasound Systems MRI Units(Open type) Prevention and Breast cancer screening Less burdenso
Slide 21: Hitachi Medical's Business Strategy [1]
3-4. Hitachi Medical’s Business Strategy [1] l Medium- and long-term initiatives leveraging Healthcare Group synergies (1) Become a global player in ultrasound and MRI systems nHiring the management staff in North America and Europe since April, 2014 nStep up investment aimed at expanding the scope
Slide 22: Hitachi Medical's Business Strategy [2]
3-4. Hitachi Medical’s Business Strategy [2] l Regional business expansion initiatives in FY2014 Region Main initiatives Expand the ARIETTA ultrasound platform in each clinical department. Increase sales of 1.5 and 3 Tesla large- Japan diameter, oval-shaped bore MRI systems Expand the ARIETTA ultras
Slide 23: Hitachi Medical's Business Strategy [3]
3-4. Hitachi Medical’s Business Strategy [3] l Highlights of progress on the Hitachi Smart Transformation Project n Centralized production of Hitachi Medical and Hitachi Aloka Medical at the Suzhou plant (first half of FY2013) Production Costs n Introduced new production information systems (FY2014:
Slide 24: Hitachi Medical's Business Strategy [4]
3-4. Hitachi Medical’s Business Strategy [4] [FY2013 Results] Higher revenue on the back of the launch of new ultrasound and MRI systems Revenue products and the impact of foreign currency fluctuations Below target due to surging material costs, despite higher earnings in line Operating Income with
Slide 25: Contents
Healthcare Business Strategy Contents 1. Business Overview 2. Market Environment 3. Hitachi’s Mission and Business Strategy 4. Business Performance Trends 5. Conclusion © Hitachi, Ltd. 2014. All rights reserved.
Slide 26: Business Performance Trends [Healthcare Related]
4. Business Performance Trends [Healthcare Related] Revenues 61% Overseas revenue ratio 65% (Billion yen) 60% 35% 57% Service revenue ratio 600.0 600 24% 21% 21% l Data platform services 500 l Preventive services l Solutions for hospitals and Operating community healthcare income (Billion yen) 400 l
Slide 27: Contents
Healthcare Business Strategy Contents 1. Business Overview 2. Market Environment 3. Hitachi’s Mission and Business Strategy 4. Business Performance Trends 5. Conclusion © Hitachi, Ltd. 2014. All rights reserved.
Slide 28: Hitachi's Healthcare Vision
5. Conclusion [Hitachi’s Healthcare Vision] Create a society where everyone can lead healthy and secure lives with peace of mind © Hitachi, Ltd. 2014. All rights reserved. 28
Slide 29: Conclusion: FY2015 Targets
5. Conclusion FY2015 Targets nRevenues: 360.0 billion yen Overseas revenue ratio: 61% Service revenue ratio: 24% nOperating income (EBIT) ratio: 7.2% Satisfying the diversified healthcare needs at all stages of the entire care cycle through IT and medical technologies © Hitachi, Ltd. 2014. All right
Slide 30: 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
Slide 31: © Hitachi, Ltd. 2014. All rights reserved.
© Hitachi, Ltd. 2014. All rights reserved.