FY2015 Financial Results and Progress of Hitz VisionⅡ

Transcription

1 Hitachi Zosen Corporation Ras Abu Fontas A2 Desalination Plant Qatar FY2015 Financial Results and Progress of Hitz VisionⅡ July 2016 Hitachi Zosen Corporation 1

2 Contents 1. Overview of FY2015 Financial Results and Forecast of FY Progress of Mid-term Business Plan Hitz VisionⅡ 3. Key Business Strategies 4. New Businesses and Products 2

3 1. Overview of FY2015 Financial Results and Forecast of FY2016 3

4 FY2015 Results and FY2016 Forecast Overview (Unit: Billion Yen) FY2014 FY2015 FY2016 Actual Actual Forecast Order intake Net sales Operating income (ratio) 3.6% 3.9% 4.0% Non-operating P&L Ordinary income (ratio) 2.1% 3.2% 3.0% Extraordinary P&L Income tax & minority interests Net income (ratio) 1.4% 1.5% 1.5% 4

5 Order intake FY2014 Actual FY2015 Actual FY2016 Forecast (Unit: Billion Yen) Others Infrastructure Machinery Environmental Systems and Industrial Plants 5

6 Net sales (Unit: Billion Yen) Others Infrastructure Machinery Environmental Systems and Industrial Plants 0.0 FY2014 Actual FY2015 Actual FY2016 Forecast 6

7 Operating income Total 12.8 Total 15.1 Total (Unit: Billion Yen) Others Infrastructure Machinery Environmental Systems and Industrial Plants -4.0 FY2014 Actual FY2015 Actual FY2016 Forecast 7

8 by Segments (Unit: Billion Yen) Environmental Systems & Industrial Plants Machinery Infrastructure Others Total Order intake FY2014 Actual Net sales Operating income Order intake FY2015 Actual Net sales Operating income Order intake FY2016 Forecast Net sales Operating income

9 2. Progress of Mid-term Business Plan Hitz VisionⅡ 9

10 1. Positioning of medium-term management plans and Business Domains Long-term vision and medium-term management plans <FY2005-FY2010> <FY2011-FY2016> H i t z I n n o v a t i o n H i t z V i s i o n HI Plan HI Plan - Ⅱ H i t z V i s i o n Hitz Vision Ⅱ Restructuring of Company Basis Become a company that can generate stable profits Build a foundation, sow the seeds Achieve targets Evolution to Highly Profitable Company with Public Recognition Business Domains A. Environment/Green Energy Environmental restoration Effective use of natural resources Expansion of utilization of renewable energy sources B. Social Infrastructure & Disaster Prevention 10

11 2. Hitz Vision Ⅱ management targets (1) Order intake/net sales (Billion Yen) Order intake (P) Order intake (A/F) Net sales (P) Net sales (A/F) Operating income (P) Operating income (A/F) Operating income (Billion Yen) FY2014 FY2015 FY2016 Hitz VisionⅡ (Plan) Hitz VisionⅡ (Actual / Forecast) FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 Order intake Net sales Operating income Ordinary income Net income

12 2. Hitz Vision Ⅱ management targets (2) Status of Well-balanced Business Portfolio (Unit: Billion yen) FY2010 FY2014 FY2015 Domestic % % % Overseas % % % Total % % % New Businesses/Products % % Stable Businesses (After-Sales Service, etc.) % % % Hitz VisionⅡ [Overseas] 17% (FY2010) 30% (FY2016) [Stable Businesses] 40% (FY2010) 50% (FY2016) [New Businesses/Products] 50Bn (FY2016) 12

13 2. Hitz Vision Ⅱ management targets (3) Investment (Unit: Billion Yen) Hitz Vision (Actual) 3 years total Hitz VisionⅡ (Plan) 3 years total R&D expenses Capital investment M&A & others Total

14 3. Key Business Strategies 14

15 Expansion in growth areas : EfW World-class ample reference projects Europe 208 Hitachi Zosen Inova AG Asia 79 HZ India Pvt. Ltd. Hyderabad Branch Japan 482 Hitachi Zosen EfW : Energy from Waste North America 79 Hitachi Zosen Inova USA LLC Africa 3 India 1 Australia 3 South America 1 Renergia, CH 856 plants worldwide As of April 1, 2016 Shanghai, China 15

16 Expansion in growth areas : EfW Market update HZI Market Shares European EfW Market Market Shares by supplier Market Shares by supplier Total: tpd Total: tpd Source: Vaccani European Market Share Analysis of Thermal Waste Treatment Plants, 2016 Edition 16

17 Expansion in growth areas : EfW Market update Hitz Market Shares Japanese EfW Market Market Shares by supplier Market Shares by supplier Kobelco 4.2% MHIEC(martin) 6.3% Kyowa 1.7% Kawasaki giken 0.9% MHIEC(martin) 2.7% Kobelco 3.7% JFE 2.5% NSENGI 7.1% Hitz 21.1% NSENGI 8.3% Hitz 27.6% KHI 7.1% JFE 17.4% Ebara 11.3% Ebara 8.0% MHIEC 9.1% Takuma 17.1% Takuma 11.8% KHI 14.2% MHIEC 17.9% Total: tpd Total: tpd Source: Vaccani European Market Share Analysis of Thermal Waste Treatment Plants, 2016 Edition 17

18 Expansion in growth areas : EfW Market update Market Shares by Supplier Worldwide HITZ/HZI = Market Leader Source: Vaccani Worldwide Market Share Analysis of Thermal Waste Treatment Plants, 2016 Edition 18

19 Expansion in growth areas : EfW Market update Global forecast market volume in EfW Europe 15,700 Asia 53,000 North America 2,050 Near and Middle East & Africa 2,000 New Constructions in 1,000t Source : Ecoprog 2015/2016 (unit: billion tonnage) Approx Approx Approx North America Europe Asia Source: Estimates and Projections of Global Waste Emission Volumes, Research Institute of Solid Waste Management Engineering 19

20 Expansion in growth areas : EfW Strategies Strategies to be No. 1 in global EfW market Middle East [Inova] Work with Hitz by project Hybridize with Hitz water treatment systems Japan [Hitz] Develop next-generation technologies Joint development with Inova US [Inova] Module USA Seek partners Europe Near and Middle East Europe [Inova] UK: Strengthen turnkey project capability Poland: Module model India China Southeast Asia Japan India [Hitz lead + Inova] LoCal Plus model Consortium with ISGEC Strengthen relations with investors China [Hitz] Limit to FOB+SV Take licensee orders Southeast Asia [Hitz] Hitz 500 model United States Hitz to lead collaboration with Inova aiming for No. 1 in global EfW market Expand into Southeast Asia, India, Near and Middle East Introduce EPC concept models by market (standardization) Collaboration and operation with key partners (localization) Propose financing with Japanese government related fund (JCM) Combine with desalination plants JCM: The Joint Crediting Mechanism 20

21 Expansion in growth areas : EfW Strategies Reference in Southeast and South Asia Thai (370t/d 6,000kW) Vietnam (under construction) (75t/d 1,960kW) India (under construction) (600t/d 11,500kW) Malaysia (600t/d 18,000kW) 21

22 Expansion in growth areas : EfW R&D Rationalization by ICT Profitability Power generation amount UP =Revenue UP Stable combustion Automatic operation control system improvement Manpower saving Cost reduction =profit UP Preventive maintenance 22

23 Expansion in growth areas : EfW R&D Rationalization by ICT In 2014, Hitz started a study of big data utilization with IBM The amount of data from EfW plants is the industry s top level Mass data for analysis Past Monitoring the main data only (Limit of monitoring by operator) intuition experience courage Improvement Decision making by monitoring Skill difference between operators Present All data are monitored Big data analysis Manpower saving Stable operation Monitored by computers Machine learning Using Big data Future Unattended operation 23

24 Expansion in growth areas : EfW R&D Rationalization by ICT Remote operation system Plant operations are monitored remotely at support center Remote Monitoring Malaysia (1 st order) (600t/d, 18,000kW) Remote Monitoring / Operation Support Center (Hitz Head office, Osaka, Japan) 24

25 4. New Businesses and Products 25

26 New Businesses and Products Spin off Shipbuilding Growth of Environmental Business Creating New Businesses <Trends of Hitz group sales amount> FY1996 FY Environmental Systems and Industrial Plants Machinery Infrastructure (Unit: Billion yen) FY2005 FY Spin off Shipbuilding Others Shipbuilding FY2015 FY Growth of Environmental Business Creating New Businesses, M&A ,000 Challenge 1,000 Bn 26

27 New Businesses and Products Wind Power Business Promotion Office O Functional Materials Business Promotion Office Global Environment Protecting Technology Development & Business Promotion Office All-solid state lithium-ion batteries Hydrogen production system Onshore wind power generation Eucommia elastomer Offshore wind power generation Carbon nanotubes Methanation system 27

28 New Businesses and Products Forecast for the introduction of wind power in Japan Source: Japan Wind Power Association 28

29 New Businesses and Products Wind Power Business In operation Kitanozawa Cliff Wind Farm 12MW (14% equity) No.1 Omonogawa Wind Power Station 2,000kW No.2 Omonogawa Wind Power Station 2,000kW Planning Projects Iwaki Katte Wind Power Station 2,000kW Matsugasaki Wind Power Station 2,000kW Mutsu Ogawara Wind Power Station 57,000kW Kitakyusyu Floating Wind Turbine for NEDO Demonstration Research NEDO: New Energy and Industrial Technology Development Organization 29

30 Cautionary Statement Forward-looking statements are based on information currently available to Hitachi Zosen Corporation. Therefore those forward-looking statements include unknown risks and uncertainties. Accordingly, you should note that the actual results could differ materially from those forward-looking statements. Risks and uncertainties that could influence the ultimate outcome include, but are not limited to, the economic conditions surrounding Hitachi Zosen Corporation and/or exchange rate fluctuation. 30