Outline of Hitachi, Ltd. - Valor Econômico · Society, Market Change and Hitachi’s Vision 8 Macro Trend in Society ... Hitachi is promoting the construction of smart grid system

© Hitachi, Ltd. 2014. All rights reserved.

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Outline of Hitachi, Ltd.

11/5/2014

Kazuhiro Ikebe

Managing Director

Hitachi South America, Ltda.

© Hitachi, Ltd. 2014. All rights reserved. 1

1. Corporate Data – FY2013

Corporate Name Hitachi,Ltd. ⇒operating holding co.

Headquarters Tokyo, Japan

Consolidated

revenues

9,616.2 billion yen (≒US$93,5bil) (FY2013)

⇒No.1 among Japanese electronics co.

Consolidated net income

attributable to

Hitachi,Ltd.stockholders 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)

Through 100 years, Hitachi has grown as large group company

Exchange rate： US$1=102yen


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)


Strengthen service

businesses that maximize

the utilization of IT and

bring about innovation

3

Deliver Innovation to

Customers and Society

globally

Transform Hitachi:

To deliver innovation by

standardized and speedy

operation

3. The 2015 Mid-term Management Plan Focus

2015 Mid-term Management Plan

- Achieving Growth and Hitachi’s Transformation -

Innovation Global Transformation


4. Segment Constitution* (FY2013)

10%

7%

18%

13%

3%

13%

■Power Systems

■Financial Services

■Smart Life & Ecofriendly Systems

■Information & Telecommunication Systems

7%

14%

7%

8% ■Social Infrastructure &

Industrial Systems

■Electronic Systems & Equipment

■Construction Machinery

■Automotive Systems

■High Functional Materials & Components

Revenues

9,616 billion yen 93,4 US$ B

■Others

(Logistics and Other services)

* The percentages are based on the new segment classifications effective from FY2014


4. Global Expansion

Japan

Brazil

China

177 companies

46,4 thousand employees 1,073 billion yen sales

363 companies

88,8 thousand employees

2,063 billion yen sales

146 companies


812 billion yen sales

10 companies


31.6 billion yen sales

284 companies 196,2 thousand employees

5,303 billion yen sales

84 companies


910 billion yen sales

North America

Asia（incl. China）

Expanding world-wide, now focusing on Brazil !

Europe

* Sales: FY2013 Companies, Employees: As of end of FY2013

Sales: 93,4 billion USD / 948 Companies / 320.7 thousand Employees

Sales:42,3 billion USD / 664 Companies / 124.5 thousand Employees:

Total

Outside Japan


6. Hitachi group companies in Brazil

6

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

1,462 employees@10 companies in Brazil !


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Hitachi Social Innovation Business Overview

11/5/2014

Yutaka Kimura

Senior Vice President

Hitachi America, Ltd.


1. Society, Market Change and Hitachi’s Vision

8

Macro Trend in Society

地球温暖化、水・大気汚染問題

既存インフラの老朽化

What the Hitachi Group aims to become

Hitachi delivers innovations that answer society’s challenges.

With our talented team and proven experience in global

markets, we can inspire the world.

Shifting from a society centered on “concentration,

ownership and consumption” to “distribution,

sharing and recycling” Expansion of free trade zones

Global market growth led by emerging

countries

Energy shift drive to reorganize industry and market change

(Growing presence of the U.S., Sub-Saharan Africa and South

Africa, South America, etc.)

Securing water resources,

energy and food

Improving transportation systems

Replacement of

aging infrastructure systems

Responding to lower birthrate and aging

Reduction of CO2

Promoting material recycling

Hitachi’s Vision

Achieving a Sustainable society


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

● 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)

Social Innovation Business

Realizing Hitachi’s Vision

Business to Society Business to Business

Solutions

Society and Customer

2. Hitachi 2015 Mid-term Management Plan


3.Concept Hitachi’s Social Innovation Business

10

Provide total solutions for sustainable, urban development worldwide

and to address critical global issues.


Connect social infrastructure and lifestyles with services to create a safe, secure, comfortable and eco-friendly society

4. Social Infrastructure Innovation with OT & IT

Manufacturing/Engineering

Product, Solution

Hitachi


5. Mobility Transportation <U.K.,Indial Thailand, etc)


6. Use Case : Big Data Utilization in the Railway

New Maintenance Model for Train and Facilities


Time-Based Maintenance

Occurrence-Based Reaction

Periodical Maintenance

Real-time Information from Live Sensors

on Rolling Stocks

Monitor Machine Data,

Linked to Spare Parts System

Preventive Maintenance Business

with Reduced Cost and

Optimal Service Quality

Can We Provide Maintenance

Services Optimized for

Leadtime and Spares Inventory?

！

Today’s Objective Vision for Solution

３ Yr

13


EV charging spots

DMS: Distributed Management System

M2M： Machine-to-Machine

HGW： Home Gate Way

Island of Maui In the U.S. state of Hawaii

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.

● ●

Kihei area

Wind turbine

EV center Integrated DMS Direct Load

Control

Information control platform

Batteries

Water

Heater

EV

Charger

EV Charger

EV Charging Stations

PV

ＨＧＷ DMCD

μＤＭＳ

Transformers

Sub

Station

M2M network

Hitachi is promoting the construction of smart grid

system through adopting EV and other systems.

Feasibility study : from 2011

Operation : by 2015

20 EV Charging Stations

200 volunteers as user of EV

40 volunteer residences

7. Smart City Business Activities

14

Achieving 40% renewable energy(RE) in Hawaii by 2030


8 . Energy Solutions

15


・ 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

16

9. Use Case : GIS Utilization in Agricultural Area

Note: GIS:Geographic Information System


Group

Synergy Brazilian

partners

17

10. Realize Our Vision by 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*

Social Innovation Business

⑤ Solutions

Services

Sophisticated IT, OT

Products

To Realize

Hitachi’s

Vision

Government

Company

Consumer

Society

③ R&D

for Brazil

① Relationship (② Identify Issues)

④ Manufacture

in Brazil

Our Localization

Loop in Brazil

* OT： Operational Technology


Thanks to our friendship !

Serving the World with

Our Social Innovation Business

SOCIAL INNOVATION ‐ IT’S OUR FUTURE

Documents

Outline of Hitachi, Ltd. - Valor Econômico · Society, Market Change and Hitachi’s Vision 8 Macro Trend in Society ... Hitachi is promoting the construction of smart grid system