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Outline of Hitachi in Europe

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Outline of Hitachi in Europe RIETI-CEPRシンポジウム Brexit後の世界経済 パネルディスカッション Panel Discussion 株式会社日立製作所渉外特別代表 Special Representative for External Relations, Hitachi, Ltd. 田辺 靖雄 TANABE Yasuo 2019年3月22日 主催:独立行政法人経済産業研究所（RIETI）/ Centre for Economic Policy Research (CEPR) Outline of Hitachi in Europe As a Innovation Partner for the IoT Era March 22, 2019 Yasuo Tanabe Hitachi, Ltd. 1. Outline of Hitachi 2. Hitachi in Europe 3. Keidanren request for Brexit negotiations 4. Policy thoughts 1-1. Hitachi is an Innovation Partner An Innovation Partner for the IoT Era Accelerate collaborative creation with customers through Advanced Social Innovation Business Four Focus Business Domains Power・Energy Industry・ Urban Finance・ Distribution・ Public・ Water Healthcare 1-2. At a glance of Hitachi (Global) Hitachi Group in FY17 Information & Others Telecommunication Systems Smart Life & Ecofriendly Consolidated Systems Revenue EBIT 6% Automotive Systems 5% 20% €72.1B €5.0B 10% Revenue Social EBIT Margin 6.9% High Functional €72.1B Infrastructure Materials & （Overseas:50%） & Industrial 16% Components （FY2017) Systems Years since number 23% foundation of Employees 9% 11% Electronic 108years 307,275 Construction Systems & As of Mar. 2018 Machinery Equipment *：Currency Rate : €1＝130JPY 5 © Hitachi, Ltd. 2019. All rights reserved. 1-3. Global Business Expansion (FY2017) Europe North America ■Revenues: €7.4 billion ■Revenues: €9.1 billion yen ■Number of companies: 139 ■Number of companies: 100 ■Number of employees: 16 thousand ■Number of employees: 21 thousand China Japan ■Revenues: €8.0 billion ■Revenues: €35.7 billion ■Number of companies: 143 ■Number of companies: 202 ■Number of employees: 44 thousand ■Number of employees: 168 thousand Asia（incl. China） Other Areas ■Revenues: €16.0 billion ■Revenues: €3.8 billion ■Number of companies: 332 ■Number of companies: 106 ■Number of employees: 88 thousand ■Number of employees: 12 thousand Japan Revenues: €35.7 billion, Number of companies: 202, Number of employees: 168 thousand Outside Japan Revenues: €36.4 billion, Number of companies: 677, Number of employees: 139 thousand Total Revenues: €72.1 billion, Number of companies: 879, Number of employees: 307 thousand 6 © Hitachi, Ltd. 2019. All rights reserved. * Revenues: FY2017, Number of companies and employees: As of end of FY2017 1-4. Social Innovation Business (Our Capabilities & Strengths) Deliver innovations to customers and OT IT society through Control・Operation Monitoring・Analyzing fusion of OT, IT, and ・Forecasting products/systems Products / Systems Hardware・Materials・EPC・SI OT: Operational Technology 7 © Hitachi, Ltd. 2019. All rights reserved. 1. Outline of Hitachi 2. Hitachi in Europe 3. Keidanren request for Brexit negotiations 4. Policy thoughts 2-1. Revenue in Europe by Business Segment (FY2017) Automotive Systems Smart Life & Ecofriendly Systems Social Infrastructure & Industrial Systems High Functional Materials & 6% 1% Components 13% Construction 37% Revenues Machinery (Rail:34%) 14% €7.4 B Information & Telecommunication Systems 16% 13% Electronic Systems & Equipment 9 © Hitachi, Ltd. 2019. All rights reserved. 2-2. Our Presence in Europe (Key Business) Hitachi Group in Europe is expanding its already significant presence through organic growth of its four strategic sectors – Rail Systems, Power Systems, IoT Solutions and Construction Machinery. Railway Systems Information & Telecommunication Systems Rolling stock + maintenance Service Electrical components IT Service, Data Centre Solutions, Consulting System Solutions Signaling / Train control systems Large-scale systems, Highly reliable systems Finger Vein Authentication Healthcare Systems Platforms Hardware, Software Power Systems Construction Machinery Transmission & Distribution Hydraulic Excavators Wheel Loaders Mining Equipment 10 © Hitachi, Ltd. 2019. All rights reserved. 2-3. Hitachi Group Companies’ Headquarters in Europe Maidenhead: Hitachi Europe London: Hitachi Rail Europe Amsterdam:Hitachi Construction Machinery (Europe) Hitachi Consulting Europe Hitachi Solutions Europe Gloucester: Horizon Nuclear Power Stoke Poges: Hitachi Data Systems Bradford-on-Avon: Hitachi Information Control Systems Europe Düsseldorf: Hitachi Metals Europe Hitachi Chemical Europe Munich: Hitachi Automotive Systems Europe Erkrath: Hitachi Kokusai Electric Europe Krefeld: Hitachi High-Technologies Europe Brussels: Hitachi Corporate Office, Europe Zug: Hitachi Medical Systems Europe Holding Milan: Hitachi Industrial Engineering EMEA Hitachi Drive Automation Italy Rome: Hitachi Systems CBT Italy Naples: Hitachi Rail Italy Manufacturing Sites： 11 Genoa: Ansaldo STS Vicenza: FIAMM Energy Technology R&D Centre：8 11 © Hitachi, Ltd. 2019. All rights reserved. 2-4. Railway in UK Urban : Rail Maintenance in UK Providing the trains that are needed when they are needed, in keeping with service requirements specified by the railway operating companies Challenges that come with an older railway Issues Increasing the reliability and safety of railways Solution Remote monitoring and next-generation maintenance based on analysis of unusual sensor data and type of fault Extend the cycle of parts replacements and optimize the stock and supply chain On-time, secure and comfortable operation, Value / * Outcomes enhancing QoL of users, and economic revitalization * QoL : Quality of Life 2-5. Proton Beam Therapy Project in Madrid Healthcare : Proton Beam Therapy Hitachi to supply and install most advanced cancer treatment machine for Treatment Room Clinica Universidad de Navarra (CUN) - Madrid Spain *Under construction First Treatment scheduled Spring 2020 13 © Hitachi, Ltd. 2019. All rights reserved. 2-6. Smart Community Project in Malaga (2013-2016) Energy and Urban : EV as a Service City of Malaga EV Solutions × (Mobility x Energy) Endesa to make our societies ready to have most vehicles electric × - Mitigate issues on electrical grid - Utilize EV batteries as energy resource Other Hitachi Applications Energy Management EV This demonstration is supported by the METI (Ministry of Economy, Trade, and Industry) and NEDO (New Energy and Car-sharing Industrial Technology Development Organization). 14 © Hitachi, Ltd. 2019. All rights reserved. 1. Outline of Hitachi 2. Hitachi in Europe 3. Keidanren request for Brexit negotiations 4. Policy thoughts 3. Keidanren Opinion on the second phase of the Brexit negotiations, March 16, 2018 1. Transition Period − Future relationship agreement b/w UK and EU should enter into force immediately after the transition period, or extend the transition period. 2. Future EU-UK relationship ‒ highest possible level of market access and tariff-free trade ‒ simplified customs procedures and appropriate rules of origin (EU AEO system, cumulative rules of origin, etc.) ‒ regulatory coherence (mutual recognition agreement, functional equivalence procedures, etc.) ‒ grandfathering approvals, registrations, authorizations, licenses, etc. 3. Future of EU bilateral and multilateral agreements ‒ Future EPA b/w UK and Japan should enter into force immediately after the transition period. 16 © Hitachi, Ltd. 2019. All rights reserved. 1. Outline of Hitachi 2. Hitachi in Europe 3. Keidanren request for Brexit negotiations 4. Policy thoughts 4. Policy thoughts UK and Japan should lead global trade and investment rules. UK and Japan should promote "Inclusive Trade" concept in view of globalization fatigue. UK and Japan should work together to promote digital trade. 18 © Hitachi, Ltd. 2019. All rights reserved. .
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