Cannot change the logo size and position. Outline of Hitachi, Ltd. 11/5/2014 Kazuhiro Ikebe Managing Director Hitachi South America, Ltda.
1. Corporate Data FY2013 Through 100 years, Hitachi has grown as large group company Corporate Name Headquarters Consolidated revenues Consolidated net income attributable to Hitachi,Ltd.stockholders Hitachi,Ltd. operating holding co. Tokyo, Japan 9,616.2 billion yen ( US$93,5bil) (FY2013) No.1 among Japanese electronics co. 264.9 billion yen ( US$D2,6bil) (FY2013) Number of consolidated employees 320,725 (as of end of March 2014) Number of Companies 948 (as of end of March 2014) Founded 1910 over 100 years history Number of Shareholders 394,689 (as of end of March 2013) Exchange rate: US$1=102yen 1
2. Corporate Foundation Founded in 1910 as a machine repair shop at a Mining Company in Hitachi City, Ibaraki Prefecture, Japan (Incorporated in 1920) Hitachi founding spirit: Harmony, sincerity, pioneering sprit Corporate credo: Contribute to society through the development of superior, original technology and products Founder Namihei Odaira Original repair shop in Ibaraki (1910) 2
3. The 2015 Mid-term Management Plan Focus 2015 Mid-term Management Plan - Achieving Growth and Hitachi s Transformation - Innovation Global Transformation Strengthen service businesses that maximize the utilization of IT and bring about innovation Deliver Innovation to Customers and Society globally Transform Hitachi: To deliver innovation by standardized and speedy operation 3
4. Segment Constitution* (FY2013) Financial Services Others (Logistics and Other services) 13% 3% 18% Information & Telecommunication Systems Smart Life & Ecofriendly Systems 7% Revenues 7% Power Systems Automotive Systems 8% 9,616 billion yen 93,4 US$ B 14% Social Infrastructure & Industrial Systems High Functional Materials & Components 13% 7% 10% Electronic Systems & Equipment Construction Machinery * The percentages are based on the new segment classifications effective from FY2014 4
4. Global Expansion Expanding world-wide, now focusing on Brazil! Europe 146 companies 10,3 thousand employees 812 billion yen sales China 177 companies 46,4 thousand employees 1,073 billion yen sales Asia(incl. China) 363 companies 88,8 thousand employees 2,063 billion yen sales Japan 284 companies 196,2 thousand employees 5,303 billion yen sales North America 84 companies 15,5 thousand employees 910 billion yen sales Brazil 10 companies 1,462 thousand employees 31.6 billion yen sales Outside Japan Total Sales:42,3 billion USD / 664 Companies / 124.5 thousand Employees: Sales: 93,4 billion USD / 948 Companies / 320.7 thousand Employees * Sales: FY2013 Companies, Employees: As of end of FY2013 5
6. Hitachi group companies in Brazil 1,462 employees@10 companies in Brazil! Company Employees EST. Hitachi Brazil Ltda (Regional HQ) 24 1940 Hitachi Air Conditioning Products Brazil Ltda. 851 1972 Hitachi High-Technologies do Brazil Ltda(Trading/Procurement) 14 1972 Hitachi Data Systems Computadores do Brasil Ltda. 45 1992 Hitachi Sistemas Médicos do Brasil Ltda. 6 1999 Clarion do Brasil Ltda (Car audio/car navigation) 72 2000 Hitachi Koki do Brasil Ltda (Power tools) 21 2010 Hitachi Kokusai Linear Equipamentos Eletrônicos S.A 311 2011 Deere-Hitachi Màquinas de Construção do Brasil S.A 113 2011 Hitachi-Mycom Manutencao e Solucoes Ltda. 5 2012 Number of employees: as of Sep30, 2013 6
Cannot change the logo size and position. Hitachi Social Innovation Business Overview 11/5/2014 Yutaka Kimura Senior Vice President Hitachi America, Ltd.
1. Society, Market Change and Hitachi s Vision Shifting from a society centered on concentration, ownership and consumption to distribution, sharing and recycling Global market growth led by emerging countries Macro Trend in Society Expansion of free trade zones Energy shift drive to reorganize industry and market change (Growing presence of the U.S., Sub-Saharan Africa and South Africa, South America, etc.) 地球温暖化 水 大気汚染問題 既存インフラの老朽化 Securing water resources, energy and food Achieving a Sustainable society Replacement of aging infrastructure systems Reduction of CO2 Improving transportation systems Responding to lower birthrate and aging Promoting material recycling What the Hitachi Group aims to become Hitachi s Vision Hitachi delivers innovations that answer society s challenges. With our talented team and proven experience in global markets, we can inspire the world. 8
2. Hitachi 2015 Mid-term Management Plan Realizing Hitachi s Vision Society and Customer Business to Society Business to Business Social Innovation Business Identify issues from customer perspectives and work on solutions together with customers, as One Hitachi Realize innovations by providing solutions that combine products, services and highly sophisticated IT (Cloud) Solutions Services Deliver solution to our customers from maintenance operation and outsourcing to management support Service Platform on the Cloud Create solution through analysis and evaluation of collected data using cutting-edge IT Products Provide base of solution with broader systems expertise and technologies 9
3.Concept Hitachi s Social Innovation Business Provide total solutions for sustainable, urban development worldwide and to address critical global issues. 10
4. Social Infrastructure Innovation with OT & IT Connect social infrastructure and lifestyles with services to create a safe, secure, comfortable and eco-friendly society Hitachi Manufacturing/ Engineering Product, Solution 11
5. Mobility Transportation <U.K.,Indial Thailand, etc)
6. Use Case : Big Data Utilization in the Railway New Maintenance Model for Train and Facilities Today s Objective Time-Based Maintenance Periodical Maintenance 3 Yr Vision for Solution Real-time Information from Live Sensors on Rolling Stocks Occurrence-Based Reaction! Monitor Machine Data, Linked to Spare Parts System Can We Provide Maintenance Services Optimized for Leadtime and Spares Inventory? Preventive Maintenance Business with Reduced Cost and Optimal Service Quality Hitachi, Ltd. Ltd. 2014. All All rights reserved. 13
7. Smart City Business Activities Achieving 40% renewable energy(re) in Hawaii by 2030 Energy situation in Hawaii - The most oil-dependent state in the U.S. - 90% of energy consumption relied on fossil fuels. - Electricity prices is 3 times compare to main land. Wind turbine Island of Maui In the U.S. state of Hawaii EV center Integrated DMS Information control platform M2M network Transformers Direct Load Control Kihei area EV charging spots Batteries Sub Station μdms Hitachi is promoting the construction of smart grid system through adopting EV and other systems. EV Charging Stations DMCD HGW Feasibility study : from 2011 Operation : by 2015 20 EV Charging Stations 200 volunteers as user of EV 40 volunteer residences EV Charger DMS: Distributed Management System M2M: Machine-to-Machine HGW: Home Gate Way PV Water Heater EV Charger 14
8. Energy Solutions 15
9. Use Case : GIS Utilization in Agricultural Area Analysis of crop growth based on satellite images Optimization of harvest timing and sequence: (1) Improvement of quality and income (2) Reduction of environmental load Note: GIS:Geographic Information System 16
10. Realize Our Vision by Social Innovation Business To Realize Hitachi s Vision Our Localization Loop in Brazil 1 Relationship (2 Identify Issues) Social Innovation Business Identify issues from customer perspectives, and work on solutions together with customers, as One Hitachi Realize innovations by providing solutions that combine products, services and highly sophisticated IT, OT* Society Government Company Consumer * OT: Operational Technology 5 Solutions Products Services Sophisticated IT, OT 3 R&D for Brazil Brazilian partners Group Synergy 4 Manufacture in Brazil 17
Thanks to our friendship! Serving the World with Our Social Innovation Business SOCIAL INNOVATION IT S OUR FUTURE 18