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Hitachi Rail Introduction and a Vision of the Future Hitachi Social Innovation Forum Brett Dolan Brisbane 2017 General Manager Hitachi Australia Pty Ltd Contents Hitachi Rail Introduction and a Vision of the Future Hitachi Social Innovation Forum Brett Dolan Brisbane 2017 General Manager Hitachi Australia Pty Ltd Contents 1. Hitachi Rail Intro 2. Key Achievement 3. Hitachi’s Rail Future © Hitachi Australia Pty Ltd.2017. All rights reserved 2 Our business in Hitachi (FY2016) ■Financial Services ＊2 ■Others ＊1 ■ Information & 2% Telecommunication Systems 6% ■Smart Life & Ecofriendly Systems 6% 20% 10% Revenues 9,162.2 billion yen ■ Social Infrastructure & ■Automotive Systems Industrial Systems 81.81 billion USD 14% 23% ■High Functional Materials & Components 7% 12% ■Electronic Systems & Equipment ■Construction Machinery *1: Hitachi Transport System, Ltd. which is included in "Others“ became equity-methods affiliate of Hitachi, Ltd. on May 19, 2016. *2: Hitachi Capital Corporation which constitute of "Financial Services" became equity-methods affiliate of Hitachi, Ltd. on October 3, 2016. © Hitachi Australia Pty Ltd.2017. All rights reserved 3 Global Rail business performance FY2016 FY2016 Results Revenues First IEP train manufactured in UK ¥ 497.9bn A$6.22Bn Order Intake Order Backlog ¥ 473.1bn ¥ 2,020.5bn A$5.91bn A$25.26Bn Note: FX Rate used 1AUD = 80JPY. FY2016 results, as of March 30th, 2017. Hitachi Rail Italy delivers first train to Miami Dade County, USA © Hitachi Australia Pty Ltd. 2017. All rights reserved. 4 Our rail business has a full product range… 53% ROLLING STOCK 26% SIGNALLING & SYSTEMS Rolling Stock Components Signalling & Traffic Management Station & Information Solutions Very High Shinkansen Bogies Interlocking Satellite Train Passenger Speed Control Information Commuter Intercity Traction Motor CBTC Components Ticketing & Payment Traction Inverters & LRV Metro Transformers TMS ETCS Security Monorail HVAC DriverlessFacility Crowd Flow Control Management 8% O&M RS RS Signalling Asset Refurbishment Maintenance O&M Management 13% TURNKEY LRV: Light Rail Vehicle, HVAC: Heating, Ventilation and Air Conditioning, TMS: Train Management System, ETCS: European Train Control System, CBTC: Communications-based Train Control, O&M: Operations & Maintenance, RS: Rolling Stock © Hitachi Australia Pty Ltd.2017. All rights reserved As a % of FY16 revenues 5 We have an international footprint… We have a geographically diverse business with the ability to bid effectively on major projects all over the world Europe (excl. UK) Revenues: 32% UK Revenues: 26% Japan Revenues: 17% Americas Revenues: 11% Middle East & Africa Revenues: 4% Asia Pacific (excl. Japan) Revenues: 10% OFFICES / SALES PRESENCE HEADQUARTERS FACTORIES Hitachi Rail Hitachi Rail Hitachi Rail (1) Ansaldo STS Ansaldo STS Ansaldo STS Total global headcount – 11,091 Note: Percentages represent geographical split of FY16 revenues. (1) – Headcount as at 31 March 2017 © Hitachi Australia Pty Ltd.2017. All rights reserved 6 Global production Naples, Italy Mito(Rail), Japan Pittsburg, USA Newton Aycliffe, UK Pistoia, Italy Electrical Components, Electrical Components, Rolling Stock Rolling Stock Rolling Stock Bogies Signalling System Size: 19,300 m2 Size: 42,000 m2 Size: 107,000 m2 Size: 58,850 m2 Size: 28,000 m2 Riom, France Potenza, Italy Signalling Signalling System System Miami, USA Kasado, Japan Rolling Stock Train Cars, Size: 13,000 m2 Bogey Size: 130,000 m2 HYC, China * HYEE, China * CHS, China * Batesburg, USA Reggio Calabria, Italy Electrical Electrical Signalling System Signalling System Rolling Stock Components Components 2 Size: 4,700m2 Size: 63,500 m Size: 19,800 m2 Size: 14,300 m2 Hitachi RailSystems Ansaldo STS Hitachi Rail Italy * JV with CNR. HYEE : CRRC xi’an YongeJieTong Electric Co., Ltd. HYC : Hitachi Yonge Electric Equipment (Changchun) Co., Ltd.) Qingdao CNR Hitachi Railway Signal&Communication Co., CHS : Ltd. © Hitachi Australia Pty Ltd.2017. All rights reserved 7 Key Achievement in FY2016 – Investing in our future and delivering for our customers Delivering Projects First train delivered to Delivered first 4 cars of Hitachi-built battery powered trains Testing began on the The first driverless Miami Dade County 68 car order to Taipei began operation for Kyushu first of 70 commuter train for new Lima USA as part of 68 Metro for driverless Railway Company & East Japan trains for Scotland Metro arrived in Peru Metro train contract metro system Railway Company Investing in Facilities Key Achievements Inauguration of Our newly- new Pistoia The first UK- Hitachi Rail and refurbished UK Italy Testing built IEP train Trenitalia Doncaster Facility was unveiled at unveiled new maintenance attended by Newton Aycliffe double-deck depot receives then Prime manufacturing regional train - its first train Minister Matteo facility Rock Renzi Our purpose- Hitachi Rail Production built IEP showcased its 20th anniversary started at maintenance integrated global for Hitachi Pistoia Italy on depot in rail offering at designed Tokyo GWR contract Swansea UK the bi-annual Area Traffic for the UK became InnoTrans Management operational exhibition in System Berlin Germany IEP: Intercity Express Programme, GWR: Great Western Railway © Hitachi Australia Pty Ltd.2017. All rights reserved 8 Key Achievement in FY2016 – We continue to win major contracts in the global market India China UK UK Italy Japan Signalling Components RS RS RS RS Framework HVAC & High West of England agreement for up CBTC systems Voltage Equipment options – 7 x 9 Hull trains – 5 x 5 to 300 regional for Noida-Greater for CRRC Inspection car MAYA35 car AT300 bi- car AT300 bi- double-deck Noida Metro and Traction for for Hokkaido Railway mode sets mode sets trains Project Xi’an Metro Line1 Company USA Taiwan Signalling RS / Turnkey Turnkey and 29 Long Island Rail two-car trainsets Road to design for the Sanying and build a new Line in New signalling system Taipei City USA Belgium Italy Italy Malaysia Australia RS Signalling RS Services Signalling Signalling Three contracts Upgrade of Baltimore Metro Additional 15 for control, signalling works Complete system Subway Link - 78 Brussels Metro “Leonardo” metro monitoring and within a section of for Perth’s new trains with signalling system trains for the city maintenance of Klang Valley Forrestfield - CBTC signalling renewal of Milan Trenitalia trains railway Airport Link CRRC: China Railway Rolling Stock Corporation SGTP: Sydney Growth Train Project RS: Rolling Stock © Hitachi Australia Pty Ltd.2017. All rights reserved 9 Track Record and on-going projects in Australia We have 40 years experience in the Australian Rail market with offices in Sydney, Brisbane, Perth, Newcastle and Karratha Western Australia Western Australia Sydney Signalling Signalling RS Components Signalling and Rio Tinto signalling, communications communications, Waratah Train system for the Roy train control and traction supply Hill Iron Ore Project automation systems (624 cars) Melbourne Sydney RS Design RS Components Design of the Silver traction supply Liner EMU’s (on-going project) Australia Queensland Queensland Queensland Signalling RS RS Components Complete system RS Components for Perth’s Forrestfield - Electric Locomotive Electric Locomotive Airport Link Tilting EMU traction supply traction supply (on-going project) (12 cars) (22 cars) (86 cars) Denotes Ansaldo STS Project © Hitachi Australia Pty Ltd.2017. All rights reserved 10 Contents 1. About Hitachi Rail 2. Key Achievement 3. Hitachi’s Rail Future © Hitachi Australia Pty Ltd.2017. All rights reserved 11 Key Achievement– Intercity Express Programme Background Project Benefits UK Department for Transport's £7.5 billion programme • 30% more seats capacity to replace older intercity trains currently operating on • 30% reduced journey time London to Bristol the East Coast and Great Western Main Lines • 15% reduced journey time London to Edinburgh 1976 2017 • 18% saving in energy consumption • 43% saving in track damage • Largest privately financed rolling stock deal ever • One of the largest Public Private Partnerships projects to date An award winning project Project Details • Total of 122 trains (866 cars) • Includes bi-mode sets for non-electrified routes • Construction of new depots for fleet maintenance • Maintenance of the fleet for 27.5 years • Collaborative interior design process © Hitachi Australia Pty Ltd.2017. All rights reserved 12 Project Delivery Progress of IEP Project 2014/11 1st Train (T1) Manufacturing 2015/01 T1 2015/03 T1 Arrival Completion in Japan Leaving Japan Southampton, UK 2015/05~ On-going test 2015/09 Open of Hitachi Manufacturing in UK Network Facility at Newton Aycliffe, UK 13 © Hitachi Australia Pty Ltd.2017. All rights reserved 13 Project Delivery Progress of IEP Project 2016/12 2016/05 Unveiling 2016/05 Prime Minister’s visit 1st UK built Train IEP Train (Azuma) (Mr. D. Cameron & Mr. S. Abe) at Newton Aycliffe 2016/05 2016/05 Queen Elizabeth II Ride Queen Elizabeth II Ride © Hitachi Australia Pty Ltd.2017. All rights reserved 14 Contents 1. About Hitachi Rail 2. Case Study 3. Hitachi’s Rail Future © Hitachi Australia Pty Ltd.2017. All rights reserved 15 Our future and the future of rail as a sector − Hitachi Rail has become a major global player within the rail industry and we have ambition to grow further − We aim to become a ¥1 trillion revenue business with market leading profit margins by: “Our aim is to become a − Further strengthening our product offering and ¥1 trillion revenue leading the way in innovation business by the early − Continuing the transformation of our business and 2020s” operations Mr Toshiaki Higashihara – President and CEO,
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