Hitachi, Ltd. · TSE:6501

Hitachi — Investor Day (June 2017)

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

  1. Slide 1: Government, Public Corporation & Social Infrastructure Business Unit Business Strategy

    Government, Public Corporation & Social Infrastructure Business Unit Business Strategy Hitachi IR Day 2017 June 8, 2017 Katsuya Nagano Vice President and Executive Officer, CEO of Government, Public Corporation & Social Infrastructure Business Unit Hitachi, Ltd. © Hitachi, Ltd. 2017. All rights rese

  2. Slide 2: Contents

    Government, Public Corporation & Social Infrastructure Business Unit Business Strategy [Contents] 1. Positioning of Government, Public Corporation & Social Infrastructure Business Unit 2. Business Overview and Analysis of Current Status 3. Business Strategy 4. Business Performance Trends 5. Conclusi

  3. Slide 3: Positioning of Government, Public Corporation & Social Infrastructure Business Unit

    Positioning of Government, Public Corporation & 1. Social Infrastructure Business Unit Consolidated the system integration function for the social infrastructure into the Government & Public Corporation BU, to reinforce the structure of IoT-related businesses, including the energy and railway fields

  4. Slide 4: Contents

    Government, Public Corporation & Social Infrastructure Business Unit Business Strategy [Contents] 1. Positioning of Government, Public Corporation & Social Infrastructure Business Unit 2. Business Overview and Analysis of Current Status 3. Business Strategy 4. Business Performance Trends 5. Conclusi

  5. Slide 5: 2-1. Business Overview

    2-1. Business Overview Provide IT services that support social systems and infrastructures, including energy and transportation Others 5% Telecommunications 9% Government offices Transportation 35% 9% Social 30% FY 2016 Revenues Public Energy 327.8 billion 65% 12% yen * Local governments 30% * From

  6. Slide 6: 2-2. Progress of 2018 Mid-term Management Plan

    2-2. Progress of 2018 Mid-term Management Plan*1  Revenues in FY2016 increased year over year and achieved the previous forecast  Promote the expansion of the digital solutions businesses, including IoT FY2016 FY2018 FY2015 (Results) FY2017 (Target) (Results) Compared (Forecast) Compared with prev

  7. Slide 7: 2-3. Market Environment

    2-3. Market Environment The market size of Japan IT services will result in a slight increase, however, the IoT market will expand at CAGR of 20%  Anticipated investment:  Market trends (Japan) Japanese public/social-related IT market • The utilization of IoT is progressing, focused (Index using 2

  8. Slide 8: 2-4. Competitive Position

    2-4. Competitive Position  Hitachi’s systems integration business is ranked top tier in Japan  Create a model case for IT x OT, and aim to be a leading company in the IoT field Hitachi’s share in the Japan IT market Government offices field*1 3rd Energy field*2 2nd Transportation field*3 2nd Compe

  9. Slide 9: Contents

    Government, Public Corporation & Social Infrastructure Business Unit Business Strategy [Contents] 1. Positioning of Government, Public Corporation & Social Infrastructure Business Unit 2. Business Overview and Analysis of Current Status 3. Business Strategy 4. Business Performance Trends 5. Conclusi

  10. Slide 10: 3-1. Basic Policy

    3-1. Basic Policy Expand the digital solutions businesses including IoT, positioning systems integration business as a base Collaborative Creation (Open) Driver of overall growth Base Driver Business Product Maintenance / Slides 3-3 to 3-9 Business System Operation Digital Solutions, Global and Serv

  11. Slide 11: 3-2. Base Business: Systems Integration in Japan

    3-2. Base Business: Systems Integration in Japan Continuously promote steady accepting orders and operations of large-scale systems which support Japanese social system and infrastructure, and through increase in productivity and efficiency 1 Accepting orders and operation for mission critical busin

  12. Slide 12: 3-3. Growth Business: Sophistication of Social Infrastructure (1)

    Growth Business: 3-3. Sophistication of Social Infrastructure (1) Contribute to the realization of Society 5.0, a super smart society Ｓｏｃｉｅｔｙ ５.０ Disaster Infrastructure Integrated community prevention and Integrated maintenance and material Smart food chain care system mitigation system management

  13. Slide 13: 3-4. Growth Business: Sophistication of Social Infrastructure (2)

    Growth Business: 3-4. Sophistication of Social Infrastructure (2) Create front-led digital solutions through collaborations with customers Embody services using IT x OT and Lumada as the fundamental technologies Priority field 1 Priority field 2 Priority field 3 Priority field 4 Priority field 5 Ｓ

  14. Slide 14: 3-5. Priority Field: Power

    Priority Field: 3-5. Power [Utilization of Power Usage Data] Reduce electricity charges by saving costs of power providers and realize new information services, utilizing data analysis and prediction technologies related to power usage status Social Challenge Strengths of Hitachi  Intensifying comp

  15. Slide 15: 3-6. Priority Field: Railway

    Priority Field: 3-6. Railway [Support of Train Operation Plan] Support operational timetable planning in passengers focused and trouble resistant aspects by applying predictions upon past behaviors by passengers Social Challenge Strengths of Hitachi  Propose the railway operational timetable and th

  16. Slide 16: 3-7. Priority Field: Social Security / Medical Care

    Priority Field: 3-7. Social Security / Medical Care [Utilization of Individual ID] Support the utilization of individual ID, including My Number, in the government, medical and private sectors to improve quality of life Social Challenge Strengths of Hitachi  [Government] Sophistication of governmen

  17. Slide 17: 3-8. Priority Field: Firefighting / Disaster Prevention

    3-8. Priority Field: Firefighting / Disaster Prevention [Telecommunication Dispatching Solutions] Contribute to the safety and security of the local community, utilizing videos and related information from an accident or disaster site in real time Social Challenge Strengths of Hitachi  Efficient co

  18. Slide 18: 3-9. Priority Field: Road

    Priority Field: 3-9. Road [Utilization of Big Data] Enhance general users' satisfaction levels and improve the profitability of related companies, analyzing road and transport-related data in real time from many perspectives Social Challenge Strengths of Hitachi  Ease traffic congestion and enhance

  19. Slide 19: Contents

    Government, Public Corporation & Social Infrastructure Business Unit Business Strategy [Contents] 1. Positioning of Government, Public Corporation & Social Infrastructure Business Unit 2. Business Overview and Analysis of Current Status 3. Business Strategy 4. Business Performance Trends 5. Conclusi

  20. Slide 20: 4. Business Performance Trends

    4. Business Performance Trends*1 Old Classification New Classification FY2015 (Results) FY2016 (Results) FY2016 (Results) FY2017 (Forecast) FY2018 (Target) Orders Received*2 246.0 billion yen 238.8 billion yen - 335.0 billion yen 350.0 billion yen Overseas Revenue Ratio 1% 0% 0% 1% 1% Growth Field R

  21. Slide 21: Contents

    Government, Public Corporation & Social Infrastructure Business Unit Business Strategy [Contents] 1. Positioning of Government, Public Corporation & Social Infrastructure Business Unit 2. Business Overview and Analysis of Current Status 3. Business Strategy 4. Business Performance Trends 5. Conclusi

  22. Slide 22: 5. Conclusion: FY2018 Target

    5. Conclusion FY2018 Target FY2018 Vs. FY2016 +22.1 billion yen Revenues 350.0 billion yen [+6.8%] Growth Fields Revenue Ratio 22% +9% Expand businesses in the IoT field positioning systems integration business as a base © Hitachi, Ltd. 2017. All rights reserved. 22

  23. Slide 23: 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

  24. Slide 24: © Hitachi, Ltd. 2017. All rights reserved.

    © Hitachi, Ltd. 2017. All rights reserved.

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