Hitachi Investor Day 2021

Smart Life Sector

June 8, 2021

Keiji Kojima

Executive Vice President and Executive Officer

General Manager of Smart Life Business Management Division

© Hitachi, Ltd. 2021. All rights reserved.

Key Messages Today

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Promoting the Smart Life Business, which improves people's QoL, by applying digital technologies

  • Improving QoL with equipment data x digital technologies and AI
  • Ensuring safety and security with environmentally friendly solutions

FY2021 forecast: Revenues at 1.0 trillionyen; adjusted operating income ratio at 9.7%; EBIT ratio at 10.9%*

  • In FY2020, revenues from the automotive systems business increased due to the integration with three Honda-affiliated companies. However, profit decreased due to the impact of COVID-19
  • The operating income ratio and EBIT ratio of Hitachi GLS and Hitachi High-Tech met the Mid-term Management Plan due to the promotion of cost structural reforms by each entity

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Accomplishing business portfolio reform

  • Hitachi Astemo was established as a result of integration with three Honda-affiliated companies. It began to be disclosed as an independent segment in FY2021
  • Transfer of diagnostic imaging-related business, conversion of Hitachi High-Tech into a wholly owned subsidiary, and establishment of a JV in overseas home appliances business

Investments for new growth

  • Expanding the Lumada business with a focus on EV, semiconductors, and connected home appliances
  • Developing next-generation healthcare business by investing strategically in four fields with high market growth rates

*EBIT ratio excluding temporary factors attributed to business transfer

© Hitachi, Ltd. 2021. All rights reserved.

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QoL: Quality of Life, Hitachi GLS: Hitachi Global Life Solutions, JV: Joint Venture, EV: Electric Vehicle

Smart Life Sector

Contents

  1. Progress of the 2021 Mid-term Management Plan
  2. Growth Strategy
  3. Summary

© Hitachi, Ltd. 2021. All rights reserved.

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Smart Life Sector

Contents

  1. Progress of the 2021 Mid-term Management Plan
  2. Growth Strategy
  3. Summary

© Hitachi, Ltd. 2021. All rights reserved.

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1-1. Position of the Smart Life Sector

IT Energy

Institutions Financial BU

Social

BU Energy Nuclear

BU Energy

BUSystems

BU GridsPower

Infrastructure

Industry

Mobility

Smart Life

Automotive

Systems

Business

Distribution & Industry BU

Environment & Water BU

BU Systems Building

BU Systems Railway

Hitachi

Tech-High Hitachi

Astemo Hitachi

Solutions

LifeGlobal

Services & Platforms BU

Product Business

© Hitachi, Ltd. 2021. All rights reserved.

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Hitachi Ltd. published this content on 08 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 June 2021 00:24:03 UTC.