COMPANY PROFILE

6Pump Industry Analyst January 2013

Hitachi Plant Technologies Ltd, JapanProfileHitachi Plant Technologies Ltd, now a wholly-owned subsidiary of Hitachi Ltd, has four divisions: Social Infrastructure Systems; Industrial Systems; Air Conditioning Systems; and Energy Systems. Social Infrastructure Systems, which accounted for 33.6% of group sales in fiscal 2011, includes large pumps, compressors, converters and water treatment and environmental preservation systems. The pump range includes single and double suction volute pumps, boiler feed pumps and LNG pumps. Hitachi Plant Technologies manufactures large pumps for water supply, wastewater and power generation at its main Tsuchiura Works in Japan and has a manufacturing joint venture in China – Hitachi Pump Manufacture (Wuxi) Co Ltd.

AnalysisSocial Infrastructure Systems’ consolidated net sales increased 2.4% year on year to almost ¥112.4 billion in fiscal 2011, as firm growth particularly in domestic private-sector projects and overseas projects compensated for the decrease in the division’s public works projects in Japan. Hitachi Plant Technologies group sales were up 11.2% in the year to 31 March 2012, while net income of ¥3494 million contrasts with a net loss of ¥3636 million a year earlier.

Key Figures (A$ million) Hitachi Plant Technologies Ltd Year ended 31.3 2012 2011 2010 2009 2008

Net Sales 334 339 300 728 335 262 395 693 398 334Of Which:Social Infrastructure Systems 112 359 109 700 120 497 135 433 153 487

Cost of Sales 287 004 260 120 294 939 354 519 365 960

Gross Profit 47 335 40 608 40 323 41 174 32 374

Operating Income/(Loss) 9888 5631 6222 7361 (5943)Of Which: Social Infrastructure Systems n/a n/a 3816 3901 (1838)3

Net Income/(Loss) 3494 (3636) 1751 (859) (6719)

Capital Expenditure 4837 3677 3973 3838 5990

R&D Expenditure n/a n/a 3867 4704 5101

Employees 6500 6500 6467 6782 7487

Contact DetailsHitachi Plant Technologies LtdPresident and Representative Director: Toshiaki HigashiharaAddress: 5-2 Higashi-Ikebukuro 4-chome Toshima-ku Tokyo 170-8466 Tel: +81 3 5928 8100 Japan Web: www.hitachi-pt.com

Recent Events�� In August 2012, Hitachi Plant Technologies signed an agreement with Japanese compressor maker Mayekawa Manufacturing Co

Ltd to set up a joint venture company year to provide maintenance services for industrial equipment in Brazil’s oil & gas plant plants. Hitachi-Mycom Maintenance & Solutions Ltda, which will be 90%-owned by Hitachi Plant Technologies and 10% by Mayekawa Manufacturing, will be a base for maintenance services for industrial equipment, including compressors, pumps and reverse osmosis (RO) equipment.

�� Hitachi Plant Technologies and Sumitomo Corp reached an agreement with Iraq’s South Oil Co (SOC) in May 2012 to look at introducing Hitachi Plant Technologies’ advanced water treatment systems to the Iraqi oil industry. The three companies will initially install a demonstrative industrial water treatment system unit developed by Hitachi Plant Technologies in an oil field owned by SOC in southern Iraq. Hitachi Plant Technologies is already contributing to the reconstruction of Iraq through its Middle East regional headquarters in Dubai, United Arab Emirates.

�� In February 2012, Hitachi Plant Technologies and LG Electronics Inc established a joint venture water treatment business based in Seoul, South Korea. The new company, LG-Hitachi Water Solutions Co Ltd, will initially focus on municipal and industrial water supply systems, municipal sewage treatment systems, industrial wastewater treatment systems and reuse and recycling of wastewater for local companies and governments.

COMMENTHitachi Plant Technologies has accelerated its global expansion, having recently converted its Singapore subsidiary into a regional headquarters, established local subsidiaries in southeast Asia and India and set up a number of joint ventures and partnerships. ■