Presentation of Strategies for Railway Systems Business
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Presentation of Strategies for Railway Systems Business Stra teg ies for RRilailway Sys tems BiBusiness -- Accelerate Globalization with Technologies Developed in Japan -- Gaku Suzuki President & CEO, Industrial & Social Infrastructure Systems Company Vice President and Executive Officer, Hitachi, Ltd. March 29, 2010 © Hitachi, Ltd. 2010. All rights reserved. Strategies for Railway Systems Business Accelerate Globalization with Technologies Developed in Japan 1O1. Overvi ew 2.. Strategies 3. Domestic Business 4. Overseas Business 5. Conclusion © Hitachi, Ltd. 2010. All rights reserved. 1. Overview Railway Systems Business in Hitachi SEGMENT INFORMATION Financial Service (millions of yen) Revenues ¥412,040 Operating Income ¥10,210 Information & Telecommunication Systems Logistics, Services & Others Revenues ¥2,594,450 Revenues ¥1, 089, 971 Operating Income ¥176,629 Operating Income ¥23,063 Year ended March 31, 2009 High Functional Materials Consolidated Revenues Electronic Devices & Components ¥10,000.3 billion Revenues ¥1,151,066 Revenues ¥1,556,886 Operating Income ¥27,322 Operating Income ¥27, 777 Digital Media & Consumer Products Power & Industrial Systems Revenues ¥1,261,501 Revenues ¥3,310,544 Operating Loss ¥(105,563) Operating Income ¥24,245 Industrial & Social Infrastructure Systems Company Information & Control Systems Company (Transportation Systems Div.) (Transportation Information Systems Div.) Rolling Stock Systems: rolling stock, electrical component, Transport Management & Control Systems: overseas rolling stock maintenance services Seat reservation system Transport Management & Control Systems: Signali ng /Tra in con tro l sys tem, tra ffic /power management sys tem Railway operation information system power supply system 鉄道システムRailway systems: 1,459億円 ¥149.0 billion* IC card ticketing system *:Unconsolidated: ¥145.9 B Railway systems: ¥27.7 billion Total Railway Sy ystems Integrator Total railway systems revenue: ¥176.7 billion (Year ended March 31, 2009) © Hitachi, Ltd. 2010. All rights reserved. 2 1. Overview Organization Industrial & Social Infrastructure Systems Company Information & Control Systems Company Transportation Systems Div. Transportation Information Systems Div. Kasado Transportation Systems Product Div. 〔Traffic/power management system, 〔Rolling Stock〕 Business support systems〕 Mito Transportation Systems Product Div. 〔 Elec tr ica l componen t, Signaling/Train control system, Traffic management System 〕 R&D sites ■ Central Research Lab. ■ Hitachi Research Lab. Hitachi Works 〔Main motor 、IGBT module〕 ■ Mechanical Engineering ■ Systems Development Kokubu Engineering & Product Div. Research Lab. Lab. 〔Power supply system〕 ■ Energy & Environmental ■ Design Div. Systems Lab. Hitachi Group / Associated companies Sales Management Div. 〔MjMajor ra ilway bus iness pro ducts 〕 Sales & Marketing Div. 〔Domestic market〕 ■ Hitachi Cable, Ltd. 〔 Rolling Stocks cable 〕 ■ Hitachi High-Technologies Corporation〔 Track device〕 Global Sales & Marketing Div. 〔Overseas market〕 ■ Hitachi Kokusai Electric Inc. 〔Train system (radio/monitor) 〕 ■ Renesas Technology Corp. 〔microprocessor for signal control〕 © Hitachi, Ltd. 2010. All rights reserved. 3 1. Overview Offices and Factories in Japan Kasado Transportation Systems Product Div. Hitachi Works Main motor IGBT module Kokubu Engineering & Product Div. Rolling Stocks (Kudamatsu-shi, Yamaguchi-ken) Power supply systems Transportation Information Systems Div. Traffic/power management systems Business Support Systems (Hitachi-shi, Ibaraki-ken Shinagawa-ku, Tokyo) Transportation Systems Div. (HQ) Mito Transportation Systems Product Div. Sales Management Div. (Chiyoda-ku, Tokyo) Electrical components Signaling/Train control systems Traffic management Systems (Hitachinaka-shi, Ibaraki-ken) © Hitachi, Ltd. 2010. All rights reserved. 4 1.Overview Overseas Subsidiaries and Partners ●Hitachi Rail Europe Ltd. / UK ●Hitachi Yonge Electric Equipment (Xi’an) Co., Ltd./China (Sales & Marketing, engineering, and (Manufacture of electrical component) maintenance service) Established in 2005 Established in 2003 AhfdDAshford Depot ●:Subsidiaries ● ■:Partners ● ■● ■ ● ● ● ■ ●■ ● ● ● ● ● ●■ ■Network Rail Ltd./UK (Signaling/Train control systems) ■Changchun Railway Vehicles Co., Ltd/China (Monorail) ■Beijing Hollysys Co., Ltd./China (Signaling/Train control systems) ■Downer EDI Rail Ltd./Australia ■Woojin Industrial Systems Co., Ltd./Korea ■China Academy of Railway Science/China (Electrical components) (Monorail, Electrical components) (Signaling/Train control systems) © Hitachi, Ltd. 2010. All rights reserved. 5 1. Overview Products and Service ① Rolling Stock Systems Rolling Stocks/Overseas maintenance Electrical components High speed train Limited express train Commuter train Monorail Overseas maintenance Main circuit/Main motor Air-conditioning /Air-moving system Transport Managemennt & Control Systems Signaling/Traffic Management Systems Business Support Systems Signaling/Train control system Traffic management system Power supply system Seat reservation system Railway operation Power management system information system IC card ticketing Platform gate system © Hitachi, Ltd. 2010. All rights reserved. 6 1. Overview Products and Service ② Efforts as total railway systems integrator High-efficiency rolling stock High systfthltitems for the acceleration of Aluminum trains (A-train) efficiency modal shift High-speed train Environment Rolling stock systems to further Small and lightweight inverter friendly reduce the environmental burden Hybrid traction system Highly reliable transport Signaling/train control system High management & control systems Traffic management system reliabili ty supporting sa fe, s ta ble an d Business support system high-density transportation Rolling Stock Signaling Hitachi Bombardier Alstom Siemens AldbdAnsaldobreda SdlStadler CAF AldAnsaldo STS Invensys Thal es Rolling Rolling Stock stocks ○ ○ ○ ○ ○ ○○ --- Systems electrical components ○ ○ ○ ○ ○ -- - - - Transport Signaling/ Management & Traffic ○ ○○○ ---○○○ Control systems management © Hitachi, Ltd. 2010. All rights reserved. 7 2. Strategies Accelerate Globalization with Technologies Developed in Japan Target Strategies Sustainable growth in Japan Revenue: ¥350 billion ■ Focus on new Shinkansen lines Overseas revenue: over 60% ■ Expand aluminum trains sales to municipal Operating income: 8% and private railway companies ■ Expand hybrid traction system business ¥350.0 billion TtMt&Transport Management & ■ Expand business support systems business Control Systems ■ Create new businesses by collaboration with Rolling Stock Systems Over customers seas ¥176.7 billion Expand overseas businesses ■ Focus on high-speed trains market Japan ■ Expand electrical components business ■ Edili/titltbiExpand signaling/train control systems business FY2008 FY2015 (Target) ■ Expand monorail business © Hitachi, Ltd. 2010. All rights reserved. 8 3. Domestic Business (1) Rolling Stock Systems: Delivery Record Share of rolling stocks:23% Share of electrical components :30% * Share percentages are Hitachi estimates CtilliConventional lines Shinkansen Hokkaido Railway Co. Series 785 limited express train East Japan Railway Co. East Japan Railway Co. Transportation Bureau of West Japan Railway Co. Series E5 preceding Series E2 Fukuoka Metropolitan Series 683 limited express train production train Shinkansen train Government Series 3000 train Hankyu Corporation Series 9300 train MtMetropo litan ItInterc ity SibRilSeibu Railway Co., Ltd. Kyusyu Railway Co. Railway Co.,Ltd. Series 30000 train Series 885 tilting train Series 2000 train Central Japan Railway Co./ Tobu Railway Co.,Ltd. Tokyo Metro Co.,Ltd. Kyusyu Railway Co. East Japan Railway Co. West Japan Railway Co. Series 50000 train Series 10000 train Series 800 Shinkansen trainSeries N700 Shinkansen train Series E257 limited express train © Hitachi, Ltd. 2010. All rights reserved. 9 3. Domestic Business (1) Rolling Stock Systems Monorail : Major Delivery Records Straddle-type monorail (No.1 share) Osaka Monorail Co.,Ltd. Tokyo Monorail Co.,Ltd 1990~ 1964~ Kitakyushu Urban Monorail Co.,Ltd Tokyo Tama Intercity 1985~ Monorail Co.,Ltd. 1998~ Yomiuri Land Monorail 1964~1978 Inuyama Monorail 1962~2008 Okinawa Monorail Co.,Ltd Monorail in Japan World Exposition(EXPO'70) 2003~ 1970 © Hitachi, Ltd. 2010. All rights reserved. 10 3. Domestic Business (1) Rolling Stock Systems Aluminum Train Technology A-train: A highly economical next-generation train technology Delivery: About 1,700 trains Module Assembly Lightweight and easy-to-recycle compared with steel Overhead rack/ducts module Po w er consumption 100 80 Side Ceiling module weight Seat module Piping module 60t (steel) 45t(aluminum) (based on Hitachi’s Estimation) Wiring module Digital Manufacturing Technology 3-dimens iona l Structural apertures Hollowing-out FSW※ machining processing Capacity of Kasado Transportation Systems Product Div. 60 trains/month (FY2008~) ※ FSW : Friction Stir Welding © Hitachi, Ltd. 2010. All rights reserved. 11 3. Domestic Business (1) Rolling Stock Systems Inverter Technology Small, lightweight and low-noise (world-class) inverters Neeoducw Product Remarks More reliable system with smaller and lighter features reducing the number of parts Exterior Easier Maintenance with unit-type built -in components Smaller, lighter and less noisy with low-noise IGBTs*2 and heat spreading and cooling system NfNo. of More precise control with high-performance micro Parts*1 60 processors and high-response on-board control