A New Fleet for the UK Network The Story of the Hitachi Class 800 Rail Forum East Midlands Annual Conference

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1 A New Fleet for the UK Network The Story of the Hitachi Class 800 Rail Forum East Midlands Annual Conference 19/10/2017 Hitachi Rail Europe, Ltd Nick Hughes, Sales Director

2 Contents 1. Understanding Hitachi Rail 2. Why collaboration drives our business 3. Japanese heritage efficiency, innovation and design 4. British manufacturing investment, skills and quality 5. Creating a business to support the UK rail market and beyond 6. Question and answer session Hitachi Rail Europe Ltd All rights reserved. 2

3 Understanding Hitachi Rail Establishing a Global Business Expansion through Acquisition Stabilising and Optimising the Business Developing an international presence Ø Hitachi expands into the UK Ø Secured major orders including HS1 and IEP Ø UK becomes global headquarters Ø Looks to add scale to the business through acquisition Acquisition of Ansaldo companies Ø Globalise and increase scale through acquisitions Ø Range of new products added to Hitachi Rail s portfolio including Turnkey Optimise to achieve the long term ambition Ø Integration of newly acquired businesses ongoing Ø Optimisation on internal processes and alignment of strategy key focuses Ø Once the enlarged business stabilised, we will be able to seek further acquisitions in order to meet our long term ambition Hitachi Rail Europe Ltd All rights reserved. 3

Cyber-PoC City-level economic efficiency simulation for urban development Transport information visualization Integrated visualization for operation / facility planning Station Simulation Simulate

Explosive Detector Detecting explosive compounds adhering to IC card and portable devices Operation Knowledge Transport System & SI IoT in Rail Extended Passenger Experience Efficient Rail Operations

verification EMIEW+CCTV Robots communicate to lost passengers Smart-phone app.

5 Cyber-PoC City-level economic efficiency simulation for urban development Transport information visualization Integrated visualization for operation / facility planning Station Simulation Simulate human flow to investigate appropriate layout of facilities and shops in the station. Smart maintenance Collect and analyze data from rolling stock, track, contact line and wayside devices. Explosive Detector Detecting explosive compounds adhering to IC card and portable devices Operation Knowledge Transport System & SI IoT in Rail Extended Passenger Experience Efficient Rail Operations Data Management Privacy Preserved Image Distribution Distributes CCTV images with iconized passengers Walk-through Gate Advanced Finger Vein Authentication Technology for smooth and accurate personal verification EMIEW+CCTV Robots communicate to lost passengers Smart-phone app. Train operation congestion information for passengers Passenger Information System Train operation information on Station and on-board Understanding Hitachi Rail 1. New Market 2. Core Market 3. Core Market 4. New Market 5. New Market 6. Core Market 7. Core Market USA/Canada Commuter RS and Systems or various cities (eg Toronto, Atlanta) UK High Speed 2 RS and Systems for UK HS2 UK Joint Venture with Bombardier New trains for NTFL London Underground Europe IoT Ticketing solution for European operators Denmark IoT Dynamic Headway for Copenhagen Metro Japan Rolling Stock Next generation Shinkansen carbody and traction Japan Signalling/TMS CBTC, ATACS for Metropolitan area, SAINT/COSMOS for Shinkansen 2, ,7, New Market 9. Core Market 10. Project by Project 11. Project by Project 12. Project by Project 13. Project by Project 14. Core Market South America Turnkey Turnkey solution for major cities (eg Lima, Santiago) Italy New Tram For various Italian cities (eg Milan, Florence) India High Speed RS and Systems for India High Speed South East Asia Turnkey Various Metro turnkey projects (eg Hanoi, Manila) Australia Signalling for Freight Signalling for mining clients China Partnerhip with CRRC and CARS Traction and on-board ATP for High Speed Train Japan IoT Co-creation with existing customers RS: Rolling Stock, NTfL: New Tube for London, CBTC: Communication Based Train Control, ATACS: Advanced Train Administration and Communication System SAINT: Shinkansen ATC and INTerlocking, COSMOS: Computerized Safety, Maintenance and Operation Systems of Shinkansen CRRC: China Railway Rolling Stock Corporation, CARS: China Academy of Railway Sciences, ATP: Automatic Train Protection Hitachi Rail Europe Ltd All rights reserved. 5

Why collaboration drives our business 82m investment in the UK economy with wide reaching supply chain benefits and growth investment Current staff of over 900, including 50 apprentices Major

7 Why collaboration drives our business 82m investment in the UK economy with wide reaching supply chain benefits and growth investment Current staff of over 900, including 50 apprentices Major emphasis placed on working with the local supply chain across recruitment and components leaving a developed legacy within the local region and economic benefit Major support and skills transfer from our colleagues across Japan Using our Kasado facility as a blueprint, Newton Aycliffe opened in 2015 Hitachi, Rail Europe Ltd All rights reserved. 7

Japanese heritage Efficiency, innovation and design are key to understanding why Japan has a world- leading rolling stock record Our Class 395 and new Class 800/801

from the beginning Working with the DfT, passenger groups, TOCs and suppliers to ensure the train is fit for purpose and works out- of- the- box The Intercity

8 Japanese heritage Efficiency, innovation and design are key to understanding why Japan has a world- leading rolling stock record Our Class 395 and new Class 800/801 fleet are direct derivatives from Shinkansen bullet trains used in Japan The trains are designed with maintenance and fault- free operation the key considerations from the beginning Working with the DfT, passenger groups, TOCs and suppliers to ensure the train is fit for purpose and works out- of- the- box The Intercity Express programme will replace 122 high speed trains on the GWML and ECML - 5.7bn funded by Japanese & European banks Hitachi, Rail Europe Ltd All rights reserved. 8

excess of 200m investment in new and upgraded facilities Co-sponsor of the South Durham University Technical College (UTC) inspiring the next

9 British manufacturing Investment, skills and quality underpin everything we do in the UK Newton Aycliffe - Capacity of up to 40 cars per month - with manufacture, assembly and testing facilities available;; increasing scope including R&D 13 train maintenance centres across the UK, in excess of 200m investment in new and upgraded facilities Co-sponsor of the South Durham University Technical College (UTC) inspiring the next generation of engineers in the UK Contribution to the National College for High Speed in Doncaster Hitachi, Rail Europe Ltd All rights reserved. 9

Creating a business to support the UK New trains and a solid order book to deliver across the UK and beyond A focus on

teams What works? Why? How? What can we do better?

railway systems A strong team with developed transferable skills to support the skills gap in the UK Current bids include

10 Creating a business to support the UK New trains and a solid order book to deliver across the UK and beyond A focus on globalising our businesses combining the best talent, design and production from across the world 360 feedback across our teams What works? Why? How? What can we do better? Using our skilled design teams;; offering new and innovative technology-driven solutions across rolling stock and digital railway systems A strong team with developed transferable skills to support the skills gap in the UK Current bids include influential projects to develop the UK rail market New Tube for London project and HS2 rolling stock Continued growth across Europe & beyond! Hitachi, Rail Europe Ltd All rights reserved. 10

Transportation Solutions from Italy and Japan

Transportation Solutions from Italy and Japan 25 th November, 2016 Yasuo Tanabe Senior Vice President and Executive Officer 1. Railway -Environmentally Friendly Transportation Share of CO2 Emission Others