Hitachi in Europe 2019
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Hitachi in Europe © Hitachi Europe Ltd. 2020 . All rights reserved. Contents 1. Overview of Hitachi 2. Introduction of European Business © Hitachi Europe Ltd. 2020 All rights reserved. 2 Overview of Hitachi © Hitachi Europe Ltd. 2020 . All rights reserved. 1-1. Corporate foundation • Founded in 1910 as a machine repair shop at ORIGINAL REPAIR SHOP IN IBARAKI (1910) Kuhara Mining Company in Hitachi City, Ibaraki Prefecture, Japan (Incorporated in 1920) • Values (Hitachi Founding Spirit): Harmony, Sincerity, Pioneering Spirit • Mission Contribute to society through the development of superior, original technology and products © Hitachi Europe Ltd. 2020 . All rights reserved. 4 1-2. Hitachi Group Identity Founder: Namihei Odaira Originally set by Hitachi founder Namihei Odaira, the Mission has been carefully passed on to generations of employees and stakeholders throughout the company’s 100-year history. The Values reflect the Hitachi Founding Spirit, which was shaped by the achievements of our company predecessors as they worked hard to fulfill Hitachi’s Mission. The Vision has been created based on the Mission and Values. It is an expression of what the Hitachi Group aims to become in the future as it advances to its next stage of growth. © Hitachi Europe Ltd. 2020 . All rights reserved. 5 1-2. Hitachi Group Identity © Hitachi Europe Ltd. 2020 . All rights reserved. 6 1-2. Hitachi Group Identity “Hitachi delivers innovations that answer society’s challenges. With our talented team and proven experience in global markets, we can inspire the world.” © Hitachi Europe Ltd. 2020 . All rights reserved. 7 1-3. Corporate Data Headquarters Revenues FoundedFounded 6-6, Marunouchi ¥9,480.6 billion 1-chrome, Chiyoda-ku, (FY2018) 19101910 Tokyo, 100-8280 Japan No. of Companies Adjusted operating income*1 (As of end of FY2018) ¥754.9 billion (FY2018) 803 No. of consolidated EBIT*2 Net income employees ¥513.9 attributable to Hitachi, billion Ltd. stockholders 295,941 (FY2018) (As(As of end of FY2018) ¥222.5 billion (FY2018) © Hitachi Europe Ltd. 2020 . All rights reserved. 8 1-4. Business Segment Constitution (FY2018) Others IT 5% 20% Hitachi Chemical Energy 7% 4% Revenues Hitachi Metals Industry 10% 9,480.6 9% billion yen Mobility Hitachi Construction 12% Machinery 10% Hitachi High- Smart Life Technologies 7% 16% * The figures are based on the new segment classifications effective from FY2019 © Hitachi Europe Ltd. 2020 . All rights reserved. 9 1-4. Business Segment Constitution (FY2018) Others IT 5% 20% Hitachi Chemical Energy 7% 4% Revenues Hitachi Metals Industry 10% 9,480.6 9% billion yen Mobility Hitachi Construction 12% Machinery 10% Hitachi High- Smart Life Technologies 7% 16% © Hitachi Europe Ltd. 2020 . All rights reserved. 10 1-4. Business Segment Constitution (FY2018) Hitachi Metals Hitachi Chemical 10% 7% Hitachi Construction Others Machinery 10% 5% • Financial Institutions Business Unit(BU) Revenues • Social Infrastructure Systems BU Hitachi High- IT Technologies 7% 9,480.6 20% billion yen • Services & Platforms BU • Smart Life Energy Defense Systems BU 16% 4% Mobility Industry 12% 9% © Hitachi Europe Ltd. 2020 . All rights reserved. 11 1-4. Business Segment Constitution (FY2018) Hitachi Chemical Others 7% 5% Hitachi Metals IT 10% 20% Revenues • Nuclear Energy BU Hitachi Construction 9,480.6 Energy Machinery 10% 4% • *1 billion yen Energy BU Hitachi High- Industry Technologies 7% 9% Smart Life Mobility 16% 12% *1 As of April 1, 2019, Power BU changed its name to Energy BU. © Hitachi Europe Ltd. 2020 . All rights reserved. 12 1-4. Business Segment Constitution (FY2018) Others IT 5% 20% Hitachi Chemical Energy 7% 4% • Industry & Distribution BU Revenues Hitachi Metals Industry • 2 10% 9,480.6 9% Water & Environment BU* billion yen • Industrial Products Business*3 Hitachi Construction Mobility Machinery 10% 12% Hitachi High- Smart Life Technologies 7% 16% *2 As of April 1, 2019, Water BU changed its name to Water & Environment BU. *3 Industrial Products Business includes Hitachi Industrial Products, Ltd., which took over Industrial Products BU as of April 1 2019, and Hitachi Industrial Equipment Systems, Co., Ltd. © Hitachi Europe Ltd. 2020 . All rights reserved. 13 1-4. Business Segment Constitution (FY2018) IT Energy 20% 4% Others Industry 5% 9% Revenues • Building Systems BU Hitachi Chemical 9,480.6 Mobility 7% 12% • billion yen Railway Systems BU Hitachi Metals 10% 16% Hitachi Construction Hitachi High- Machinery 10% Technologies 7% © Hitachi Europe Ltd. 2020 . All rights reserved. 14 1-4. Business Segment Constitution (FY2018) Energy Industry 4% 9% IT Mobility 20% 12% • Healthcare BU Revenues • Smart Life & Others Smart Life 5% 9,480.6 16% Ecofriendly Systems *4 billion yen Business Hitachi Chemical Hitachi High- • Automotive Systems Business*5 7% Technologies 7% Hitachi Metals Hitachi Construction 10% Machinery 10% *4 Smart Life & Ecofriendly Systems Business includes Hitachi Global Life Solutions, Inc. which was formed thorough a merger of Hitachi Appliances, Inc. and Hitachi Consumer Marketing, Inc. *5 Automotive Systems Business includes Hitachi Automotive Systems, Ltd. © Hitachi Europe Ltd. 2020 . All rights reserved. 15 1-5. Global Expansion (FY2018*) North America Europe Asia (incl. China) Ch • Revenues: 1,205.6 billion yen • Revenues: 1,018.5 billion yen • Revenues: 2,019.5 billion yen • R • Number of companies: 88 • Number of companies: 129 • Number of companies: 316 • N • Number of employees: 21 thousand • Number of employees: 17 thousand • Number of employees: 85 thousand • N © Hitachi Europe Ltd. 2020 . All rights reserved. * Revenues: FY2018, Number of companies and employees: As of end of FY2018 16 1-5. Global Expansion (FY2018*) rth America Europe Asia (incl. China) China Revenues: 1,205.6 billion yen • Revenues: 1,018.5 billion yen • Revenues: 2,019.5 billion yen • Revenues: Number of companies: 88 • Number of companies: 129 • Number of companies: 316 • Number of c Number of employees: 21 thousand • Number of employees: 17 thousand • Number of employees: 85 thousand • Number of e © Hitachi Europe Ltd. 2020 . All rights reserved. * Revenues: FY2018, Number of companies and employees: As of end of FY2018 17 1-5. Global Expansion (FY2018*) Europe Asia (incl. China) China • Revenues: 1,018.5 billion yen • Revenues: 2,019.5 billion yen • Revenues: 1,009.8 billion yen • Number of companies: 129 • Number of companies: 316 • Number of companies: 136 nd • Number of employees: 17 thousand • Number of employees: 85 thousand • Number of employees: 40 thousand © Hitachi Europe Ltd. 2020 . All rights reserved. * Revenues: FY2018, Number of companies and employees: As of end of FY2018 18 1-5. Global Expansion (FY2018*) Europe Asia (incl. China) China • Revenues: 1,018.5 billion yen • Revenues: 2,019.5 billion yen • Revenues: 1,009.8 billion yen • Number of companies: 129 • Number of companies: 316 • Number of companies: 136 nd • Number of employees: 17 thousand • Number of employees: 85 thousand • Number of employees: 40 thousand © Hitachi Europe Ltd. 2020 . All rights reserved. * Revenues: FY2018, Number of companies and employees: As of end of FY2018 19 1-5. Global Expansion (FY2018*) North America Europe Asia (incl. China) China Japan Other Japan Revenues: 4,664.5 billion yen • Number of companies: 181 • Number of employees: 162 thousand Outside Japan Revenues: 4,816.0 billion yen • Number of companies: 622 • Number of employees: 133 thousand TOTAL Revenues: 9,480.6 billion yen • Number of companies: 803 • Number of employees: 295 thousand © Hitachi Europe Ltd. 2020 . All rights reserved. * Revenues: FY2018, Number of companies and employees: As of end of FY2018 20 1-6. Hitachi’s solutions to increase the three values To improve the Quality of Life and add values for customers Social values Environmental Economic values values To increase the three values of social, environmental and economic by five-sector business and technology solutions Mobility Smart Life Industry Energy IT solution solution solution solution solution Product Product Product Product Product © Hitachi Europe Ltd. 2020. All rights reserved. 1-7. Cyber Physical Systems Lumada Cyber Physical Systems OT × IT × Products Cyber Space Data OT for Real “Real” Physical Space OT: Operational Technology 229 © Hitachi Europe Ltd. 2020. All rights reserved. © Hitachi Europe Ltd. 2019. All rights reserved. 1-8. Even more strengthened Lumada and Co-creation Customers Start-ups Partners Co-creation To establish a new corporate venturing fund company Investment amount “Kyōsō-no-Mori” : US$150M~ Solution cores Launched in April 2019 Customers Customers Customers Customers Solution © Hitachi Europe Ltd. 2020 . All rights reserved. Customers Customers 1-9. To more contribute to society and the environment during the term of the 2021 Mid-term Management Plan Society To provide safe, To provide clean To accelerate comfortable water and sewage innovation transportation systems Data scientists services City and sewage (in the Hitachi Group) Railway services water systems 18.5 bill. Riders*/yr. 70 mill. Users*/day Over 3,000 Environment To reduce To use water in an To use resources CO2 emissions efficient manner efficiently throughout the value chain (in the Hitachi Group) (in the Hitachi Group) More than 20% reduction Over 26% improvement Over 12% improvement (vs. FY2010) (vs. FY2010) (vs. FY2010) *Cumulative total number 10 © Hitachi Europe Ltd. 2020 . All rights reserved. 1-10. Targets for 2021 Mid-term Management Plan Growth Profitability (The annual growth rate for revenues) (Adjusted operating income ratios) Over 3% Over 10% Ability to Return on Globalization generate cash invested capital (overseas revenue ratios) (operating cash flow: (ROIC) cumulative for 3 yrs.) Over 2.5 trill. yen Over 10% Over 60% © Hitachi Europe Ltd. 2020 . All rights reserved. 1-11. Hitachi and the SDG’s • In 2015, the United Nations announced 17 goals to end poverty, fight inequality and injustice and tackle climate change by 2030. The Sustainable Development Goals (SDGs) are not just a blueprint but a comprehensive action plan for business, governments and communities. • The diversity of the Hitachi Group positions the company well to make a broad contribution to achieving the SDGs.