Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2017)

21 slides from Hitachi's investor day presentation, Jun 8, 2017

  1. Slide 1: Financial Institutions Business Unit Business Strategy

    Financial Institutions Business Unit Business Strategy Hitachi IR Day 2017 June 8, 2017 Tsugio Yamamoto Vice President and Executive Officer, CEO of Financial Institutions Business Unit Hitachi, Ltd. © Hitachi, Ltd. 2017. All rights reserved.

  2. Slide 2: Contents

    Financial Institutions Business Unit Business Strategy [Contents] 1. Business Overview and Analysis of Current Status 2. Business Strategy 3. Business Performance Trends 4. Conclusion © Hitachi, Ltd. 2017. All rights reserved.

  3. Slide 3: 1-1. Business Overview

    1-1. Business Overview Promote the strengthening and expansion of global business positioning systems integration business for megabanks, insurance / capital markets and regional financial institutions as major sources of revenue Overseas (Payment Services, etc.) Megabanks / Non-banks / 13% Governme

  4. Slide 4: 1-2. Progress of 2018 Mid-term Management Plan

    1-2. Progress of 2018 Mid-term Management Plan*1  Steadily implement measures for achieving targets in the Mid-term Management Plan  Accelerate systems and structures that can swiftly respond to overseas and Japan market changes FY2016 FY2018 FY2015 (Result) FY2017 (Target) (Result) Compared (Fore

  5. Slide 5: 1-3. Market Environment

    1-3. Market Environment  The financial IT market in Japan increases only moderately  The global market expands remarkably and FinTech grows significantly  Anticipated investment: Financial IT market  Japanese Market (Index using 2015 as 100) • The reorganization of Japanese financial institution

  6. Slide 6: 1-4. Competitive Position

    1-4. Competitive Position Aim to be a major global player leveraging the accumulated strengths in the systems integration business in Japan Japan Financial IT Services Shares Hitachi Financial Institutions BU Revenue Trends (Excluding hardware and software)*1 (Index using FY2012 as 100)*2 NTT Data 1

  7. Slide 7: Contents

    Financial Institutions Business Unit Business Strategy [Contents] 1. Business Overview and Analysis of Current Status 2. Business Strategy 3. Business Performance Trends 4. Conclusion © Hitachi, Ltd. 2017. All rights reserved.

  8. Slide 8: 2-1. Basic Policy

    2-1. Basic Policy Expand digital solutions and global fields positioning systems integration business as a base Collaborative Creation (Open) Driver of overall growth Base Driver Business Product Maintenance / Digital Solutions, Business System Operation Global and Service  Hardware maintenance  C

  9. Slide 9: 2-2. Key Measures

    2-2. Key Measures Systems Integration Business in Japan 1  Ensure to obtain large-scale systems integration projects  Improve productivity and profitability of application development  Expand the solution / services business that meets new market needs Digital Solutions Business (FinTech-related

  10. Slide 10: 2-3. Base Business: Systems Integration in Japan

    2-3. Base Business: Systems Integration in Japan Continuously strengthen both sales size maintenance / expansion and profitability improvement as the base business Ensure to obtain large-scale systems integration projects Differentiate by strength of capabilities of large-scale mission critical syst

  11. Slide 11: 2-4. Growth Business: Digital Solution

    2-4. Growth Business: Digital Solution  Focus on four fields where financial institutions are connected with customers to create new values (Big data / AI, Interface, Security and Financial Infrastructure)  Promote new services and the customer collaborative creation business that combines know-ho

  12. Slide 12: 2-4. Case 1: Expand Insurance Underwriting Range Based on Data Analytics

    2-4. Case 1: Expand Insurance Underwriting Range Based on Data Analytics Analyze and utilize the big data possessed by life insurance companies to contribute to the expanded range of insurance underwriting  Provide insurance services to customers who were not eligible to be insured due to chronic d

  13. Slide 13: 2-4. Case 2: Lending Service Utilizing Big Data

    2-4. Case 2: Lending Service Utilizing Big Data Realized a new lending service that reduces workloads when small- and medium-sized companies apply for loans  Assist streamlining and diversification of financing Issues by small- and medium-sized companies Hitachi SMB (supplier) IoT Platform Lumada C

  14. Slide 14: 2-5. Growth Business: Global (1)

    2-5. Growth Business: Global (1)  Established departments dedicated to the financial institution business in Singapore and Vietnam, aiming to expand business for Japanese customers and local financial institutions in Asia  Expand the global business that combines the key technologies of group comp

  15. Slide 15: 2-5. Growth Business: Global (2): Expansion of Payment Field

    2-5. Growth Business: Global (2): Expansion of Payment Field Cash  Expand ATM service business that combines the customer bases and Payment technologies Group companies possess • Acquired large scale project in India and promoted expansion to other countries  Expand cashless payment infrastructure

  16. Slide 16: Contents

    Financial Institutions Business Unit Business Strategy [Contents] 1. Business Overview and Analysis of Current Status 2. Business Strategy 3. Business Performance Trends 4. Conclusion © Hitachi, Ltd. 2017. All rights reserved.

  17. Slide 17: 3. Business Performance Trends

    3. Business Performance Trends*1 Old Classification New Classification FY2015 (Results) FY2016 (Results) FY2016 (Results) FY2017 (Forecast) FY2018 (Target) Orders Received*2 458.2 billion yen 372.2 billion yen - 470.0 billion yen 510.0 billion yen Overseas Revenue Ratio 10% 9% 13% 19% 23% Growth Fie

  18. Slide 18: Contents

    Financial Institutions Business Unit Business Strategy [Contents] 1. Business Overview and Analysis of Current Status 2. Business Strategy 3. Business Performance Trends 4. Conclusion © Hitachi, Ltd. 2017. All rights reserved.

  19. Slide 19: 4. Conclusion: FY2018 Target

    4. Conclusion FY2018 Target FY2018 Vs. FY2016 +62.5 billion yen Revenues 510.0 billion yen [+14%] Overseas Revenue Ratio 23% +10% Growth Fields Revenue Ratio 33% +5% Switch business portfolio to digital solutions and global fields while increase profitability positioning systems integration business

  20. Slide 20: 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

  21. Slide 21: © Hitachi, Ltd. 2017. All rights reserved.

    © Hitachi, Ltd. 2017. All rights reserved.

Hitachi — Investor Day (June 2017) on 6ix