Hitachi in Europe 2019 · 2020-01-31 · • The diversity of the Hitachi Group positions the company well to make a broad contribution to achieving the SDGs. • In 2017, Hitachi

© Hitachi Europe Ltd. 20 . All rights reserved.20

Hitachi in Europe

1. Overview of Hitachi2. Introduction of European Business

Contents

© Hitachi Europe Ltd. 20 All rights reserved.20 2

Overview of Hitachi


ORIGINAL REPAIR SHOP IN IBARAKI (1910)

1-1. Corporate foundation

© Hitachi Europe Ltd. 20 . All rights reserved.20 4

• Founded in 1910 as a machine repair shop at Kuhara Mining Company in Hitachi City, Ibaraki Prefecture, Japan (Incorporated in 1920)

• Values (Hitachi Founding Spirit):Harmony, Sincerity, Pioneering Spirit

• Mission Contribute to society through thedevelopment of superior, original technology and products

Originally set by Hitachi founder Namihei Odaira, the Mission has been carefullypassed on to generations of employees and stakeholders throughout thecompany’s 100-year history.

The Values reflect the Hitachi Founding Spirit, which wasshaped by the achievements of our company predecessors as they worked hard to fulfill Hitachi’s Mission.

The Vision has been created based on the Mission andValues. It is an expression of what the Hitachi Group aims tobecome in the future as it advances to its next stage of growth.

Founder: Namihei Odaira


1-2. Hitachi Group Identity




“Hitachi delivers innovationsthat answer society’s challenges. With our talented team and proven experience in global markets,we can inspire the world.”


Revenues¥9,480.6 billion

(FY2018)

Revenues¥9,480.6 billion

(FY2018)

Founded

1910Headquarters

6-6, Marunouchi1-chrome, Chiyoda-ku, Tokyo, 100-8280 Japan

Adjusted operating income*1

¥754.9 billion (FY2018)

Net income attributable to Hitachi,

Ltd. stockholders¥222.5 billion (FY2018)

EBIT*2

¥513.9billion

(FY2018)

No. of Companies803 (As of end of FY2018)

No. of consolidatedemployees295,941

(As of end of FY2018)

1-3. Corporate Data

Founded

1910


Headquarters6-6, Marunouchi

1-chrome, Chiyoda-ku, Tokyo, 100-8280 Japan

Adjusted operating income*1

¥754.9 billion (FY2018)

Net income attributable to Hitachi,

Ltd. stockholders¥222.5 billion (FY2018)

EBIT*2

¥513.9billion

(FY2018)

No. of Companies803 (As of end of FY2018)

No. of consolidatedemployees295,941

(As of end of FY2018)

1-4. Business Segment Constitution (FY2018)

Energy4%

Industry9%

Mobility12%

Hitachi Chemical7%

IT20%

Smart Life16%

Hitachi Construction Machinery 10%

Hitachi Metals10%

Hitachi High-Technologies 7%

Others5%


Revenues9,480.6

billion yen

* The figures are based on the new segment classifications effective from FY2019



Energy4%

Industry9%

Mobility12%

Hitachi Chemical7%

IT20%

Smart Life16%


Hitachi Metals10%


Others5%

Revenues9,480.6

billion yen



Energy4%

Industry9%

Mobility12%

Hitachi Chemical7%

IT20%

Smart Life16%

Hitachi ConstructionMachinery 10%

Hitachi Metals10%


Others5%

Revenues9,480.6

billion yen

• Financial Institutions Business Unit(BU)

• Social Infrastructure Systems BU

• Services & Platforms BU

• Defense Systems BU



IT20%


Hitachi Metals10%

Smart Life16%

Energy4%

Industry9%

Mobility12%


Hitachi Chemical7%

Others5%

Revenues9,480.6

billion yen

• Nuclear Energy BU

• Energy BU*1

*1 As of April 1, 2019, Power BU changed its name to Energy BU.

• Industry & Distribution BU

• Water & Environment BU*2

• Industrial Products Business*3




Hitachi Metals10%

Energy4%

Industry9%

Mobility12%

Smart Life16%


Hitachi Chemical7%

Others5%

IT20%

Revenues9,480.6

billion yen

*2 As of April 1, 2019, Water BU changed its name to Water & Environment BU.*3 Industrial Products Business includes Hitachi Industrial Products, Ltd., which took over Industrial Products BU as of April 1 2019, and Hitachi Industrial Equipment Systems, Co., Ltd.

• Building Systems BU

• Railway Systems BU



IT20%

16%



Hitachi Metals10%

Hitachi Chemical7%

Others5%

Energy4%

Industry9%

Mobility12%

Revenues9,480.6

billion yen


Energy4%

Industry9%

Mobility12%

Hitachi Chemical7%

IT20%

Smart Life16%


Hitachi Metals10%


Others5%

• Healthcare BU

• Smart Life &Ecofriendly SystemsBusiness*4

• Automotive Systems Business*5


Revenues9,480.6

billion yen

*4 Smart Life & Ecofriendly Systems Business includes Hitachi Global Life Solutions, Inc. which was formed thorough a merger of Hitachi Appliances, Inc. and Hitachi Consumer Marketing, Inc. *5 Automotive Systems Business includes Hitachi Automotive Systems, Ltd.

1-5. Global Expansion (FY2018*)

© Hitachi Europe Ltd. 20 . All rights reserved.20 * Revenues: FY2018, Number of companies and employees: As of end of FY2018 16

North America• Revenues: 1,205.6 billion yen• Number of companies: 88• Number of employees: 21 thousand

Europe• Revenues: 1,018.5 billion yen• Number of companies: 129• Number of employees: 17 thousand

Asia (incl. China)• Revenues: 2,019.5 billion yen• Number of companies: 316• Number of employees: 85 thousand

Ch• R • N • N



rth AmericaRevenues: 1,205.6 billion yenNumber of companies: 88Number of employees: 21 thousand



China• Revenues: • Number of c• Number of e



nd



China• Revenues: 1,009.8 billion yen• Number of companies: 136• Number of employees: 40 thousand



nd



China• Revenues: 1,009.8 billion yen• Number of companies: 136• Number of employees: 40 thousand


North America

Japan Revenues: 4,664.5 billion yen • Number of companies: 181 • Number of employees: 162 thousand

Outside Japan Revenues: 4,816.0 billion yen • Number of companies: 622 • Number of employees: 133 thousand

TOTAL Revenues: 9,480.6 billion yen • Number of companies: 803 • Number of employees: 295 thousand

Europe Asia (incl. China) China Japan Other


1-6. Hitachi’s solutions to increase the three values

To improve the Quality of Life and add values for customers

Environmentalvalues

Economicvalues

Social values

To increase the three values of social, environmental and economic by five-sector business and technology solutions

Mobilitysolution

Smart Lifesolution

Industrysolution

Energysolution

ITsolution

Product Product Product Product Product© Hitachi Europe Ltd. 2020. All rights reserved.

22

OT IT Products× ×

Cyber Physical Systems

Cyber Space

Data OT for Real

“Real”Physical Space

9© Hitachi Europe Ltd. 2020. All rights reserved.

1-7. Cyber Physical Systems Lumada

© Hitachi Europe Ltd. 2019. All rights reserved.

OT: Operational Technology

Solution cores

Customers

CustomersCustomers

Solution

Customers

Co-creation

“Kyōsō-no-Mori”Launched in April 2019

To establish a newcorporate venturing

fund company

Investment amount: US$150M～

Customers

Customers

Customers

PartnersStart-ups

1-8. Even more strengthened Lumada and Co-creation


10

To provide safe, comfortable

transportation services

Railway services18.5 bill. Riders*/yr.

To provide clean water and sewage

systemsCity and sewage water systems

70 mill. Users*/day

To accelerateinnovationData scientists

(in the Hitachi Group)

Over 3,000

Society

Environment

To reduce CO2 emissions

throughout the value chain

More than 20% reduction(vs. FY2010)

To use water in anefficient manner(in the Hitachi Group)

Over 26% improvement(vs. FY2010)

To use resourcesefficiently

(in the Hitachi Group)

Over 12% improvement(vs. FY2010)

*Cumulative total number

1-9. To more contribute to society and the environment during the term of the 2021 Mid-term Management Plan


Ability to generate cash

(operating cash flow:cumulative for 3 yrs.)

Over 2.5 trill. yen

Growth(The annual growth rate for revenues)

Over 3％

Profitability(Adjusted operating income ratios)

Over 10％

Globalization(overseas revenue ratios)

Over 60%Over 10％

Return on invested capital

(ROIC)

1-10. Targets for 2021 Mid-term Management Plan


• In 2015, the United Nations announced 17 goals to end poverty, fight inequality and injustice and tackle climate change by 2030. The Sustainable Development Goals (SDGs) are not just a blueprint but a comprehensive action plan for business, governments and communities.

• The diversity of the Hitachi Group positions the company well to make a broad contribution to achieving the SDGs.

• In 2017, Hitachi identified five SDGs where it can have the greatest impact through its business strategy and six additional SDGs linked to its corporate commitment to society.

• Our Mid-term Management Plan 2021 continues this commitment to the realisation of the SDGs.

1-11. Hitachi and the SDG’s



Introduction of

European Business

2-1. Hitachi in Europe key information


the Hitachi Group in Europe is expanding its already significant presence through growth of its 5 strategic sectors...

With 1,018.5 billion yen revenues,129 legal entities and around 17,000 employees(as of March 31st 2019),


...IT, Energy, Industry, Mobility, and Smart Life –



as well as Hitachi High-Technologies,Hitachi Construction Machinery, Hitachi Metals, and Hitachi Chemical.


2-2. Hitachi Group Companies’ Headquarters in Europe


MAIDENHEAD: Hitachi Europe

LONDON:

GLOUCESTER:STOKE POGES:BRADFORD-ON-

AVON:BROMLEY:

Hitachi Rail Hitachi Consulting EuropeHitachi Solutions EuropeHorizon Nuclear PowerHitachi Vantara EMEAHitachi Information Control Systems EuropeTemple Lifts

BRUSSELS: Hitachi Corporate Office, Europe

MILAN:

GENOA: VICENZA:

HitachiIndustrial Engineering EMEA Hitachi Drive Automation ItalyHitachi Rail STSFIAMM Energy Technology

MOSCOW: ST PETERSBURG:

Hitachi, Ltd., Moscow Office Zao Hitachi-SvetlanaPower Electronics

ZUG: Hitachi Medical Systems Europe Holding

AMSTERDAM: Hitachi Construction Machinery (Europe)

DÜSSELDORF:

MUNICH:

KREFELD:

Hitachi Metals Europe Hitachi Chemical EuropeHitachi Automotive Systems EuropeHitachi High-Technologies Europe

2-2. Manufacturing sites in Europe


Hitachi Rail (Rolling stocks)NEWTON AYCLIFFE:

BOLTON: Hitachi Automotive Systems Europe (Automotive components)

Hitachi Rail (Rolling stocks)PISTOIA, NAPLES, REGGIO CALABRIA:

TITO SCALO: VERONA , L’AQUILA:

Hitachi Rail STS (Signalling systems) FIAMM Energy Technology (Batteries)

TVER REGION:

Hitachi Construction Machinery Eurasia Manufacturing (Excavators)

ZATEC: Hitachi Cable Europe (Brake hose) Hitachi Automotive Systems Europe (Automotive components)

RIOM: Ansaldo STS

SACHSEN: Hitachi Automotive Systems Europe (Automotive components)

AMSTERDAM & OOSTERHOUT:

Hitachi Construction Machinery (Europe) (Excavators, Wheel loaders)

2-2. Hitachi European Research & Development Centre


LONDON:

CAMBRIDGE:

MANCHESTER:

Hitachi Design Centre Europe(Since 1989 Experience Design & Branding)Transportation, Energy & Environment Research Laboratory (Since 2005 Rail, Automotive & Power)NEXPERIENCE/Space(Since 2017 Collaborative Creation for Solution Development)

Hitachi Cambridge Laboratory(Since 1989 Leading-edge Physics)European Big Data Laboratory(Since 2013 Big Data & Smart Mobility)

COPENHAGEN: European Big Data Laboratory(Since 2013 Big Data & Smart Mobility)

SOPHIA ANTIPOLIS:

European Big Data Laboratory(Since 2013 Big Data & Smart Mobility)

MUNICH: Transportation, Energy & Environment Research Laboratory (Since 2005 Rail, Automotive & Power)

2-5. Overview of major businesses in Europe (1)

•Nuclear Energy •Industry & Distribution Solutions•Water & Environment Solutions•Industrial Products

•Systems Integration•Consulting•Analytics•Cloud Services•Servers

•Storages•Software•ATMs•Control Systems

ENERGY INDUSTRYIT



•Railway Systems(Rolling stocks, Signaling systems, service & maintenance)

•Elevators & Escalators (service & maintenance)

•Medical Equipment•Powertrain System, Chassis System,

ADAS related System

MOBILITY SMART LIFE



•Semiconductor Manufacturing Equipment

•Test and Measurement Equipment

•Manufacturing and Inspection Equipment

•Advanced Industrial Products

•Hydraulic Excavators•Wheel Loaders•Mining Equipment•ICT Construction Solutions•Maintenance and Service

Solutions•Mine Management

Solutions

•Specialty Steel Products•Magnetic Materials

and Applications•Functional Components

and Equipment•Wires, Cables and

Related Products

•Semiconductor and Display- Related Materials

•Circuit Boards and Materials

•Automotive parts•Energy Storage Devices

CHEMICALCONSTRUCTION MACHINERY

METALSHIGH-TECHNOLOGIES




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 performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.

Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial

sectors Hitachi serves;exchange rate fluctuations of the yen against other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated; uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;uncertainty as to general market price levels for equity securities, declines in which may require Hitachi to write down equity securities that it holds; fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and

components; the possibility of cost fluctuations during the lifetime of, or cancellation of, long-term contracts for which Hitachi uses the percentage-of-completion method to recognize revenue from sales; credit conditions of Hitachi’s customers and suppliers; fluctuations in product demand and industry capacity; uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials or shortages of materials, parts and

components; uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance for such products;uncertainty as to Hitachi’s ability to attract and retain skilled personnel; increased commoditization of and intensifying price competition for products;uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business; uncertainty as to the success of acquisitions of other companies, joint ventures and strategic alliances and the possibility of incurring related expenses; uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness;the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures; general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United States and Europe, including, without limitation, direct

or indirect restrictions by other nations on imports and differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations; uncertainty as to the success of cost structure overhaul;uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property; uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity-method associates and joint ventures have become or may become parties; the possibility of incurring expenses resulting from any defects in products or services of Hitachi; the possibility of disruption of Hitachi’s operations by natural disasters such as earthquakes and tsunamis, the spread of infectious diseases, and geopolitical and social instability such as terrorism and conflict; uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information or that of its customers; anduncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee benefit-related costs.

The factors listed above are not all-inclusive and are in addition to other factors contained in other materials published by Hitachi.

Documents

Hitachi in Europe 2019 · 2020-01-31 · • The diversity of the Hitachi Group positions the company well to make a broad contribution to achieving the SDGs. • In 2017, Hitachi