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© 2025 Hitachi Energy. All rights reserved Leading in the Electricity Era: Our Strategic Outlook Hitachi Energy Andreas Schierenbeck Senior VP, Executive Officer, Hitachi, Ltd. CEO, Hitachi Energy Date October 30, 2025
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Contents 1. Current Position & Recap Inspire 2027 2. Market Development & Outlook 3. Profitable and Sustainable Growth Strategy – Inspire 2027 4. Conclusion – Update on Future Outlook 2 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved Revenue Adjusted EBITA1 ROIC2 We delivered higher growth across our portfolio We continuously improve our operations We accelerated cash conversion Hitachi Energy H1 Results: Strong revenue and profitability growth, accelerated cash conversion In nominal rate. 1Adj. EBITA adjusted operating income plus acquisition-related amortization and excludes structural reform and related costs for H1 2024 2 Hitachi Energy standalone Return on Invested Capital (ROIC). 2024 2025 $7.3B $9.2B +26% 2024 2025 10.6% 12.9% 2024 2025 16.7% 41.7% 3 © 2025 Hitachi Energy. All rights reserved
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Historic periods in constant currency. H1 2025 actuals in nominal rate. 1Hitachi Energy Adj. EBITA – excluding structural reform expenses (FY2021-FY2024) Adj. EBITA (Old Definition): Adj. operating income plus acquisition-related amortization and equity in earnings (losses) of affiliates 2Hitachi Energy Standalone ROIC $9B $10B $13B $16B 7% 6% 5% 11% CAGR +21% CAGR +42% Revenue (BUSD) Lumada Revenue ratio 7.6% 6.0% 10.9% 25.7% ROIC2 Adj. EBITA Margin1 FY2021 FY2022 FY2023 FY2024 Achievements: – Continuous significant revenue growth – De-risked strategy, leading to better margin and risk profile in Order Backlog – Operational excellence Immediate priorities for further growth/transformation: – Order backlog execution (capacity & scalability) – Become #1 Service provider – enabled by digital – Leverage digitalization (Lumada) & innovative technologies 6.1% 6.9% 8.4% 11.0% FY2025F Strong Financial Performance at the start of Inspire 2027 – A Journey to Continue 40%+ $19B 20%+ 13.2% 4 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved 5 Hitachi Energy Leads Across Electrification Sectors and Technologies #1#1#1 Market share Market share Market share Driving innovation, pioneering technologies, and solutions while maintaining and modernizing the world´s largest installed base #1 Market share Installed base #1 Supporting 50% of the top 250 global electric utilities >150 GW2 of HVDC3 links integrated into power system Installed 1 out of 4 high-voltage switchgear in the world >420 GVA1 capacity, nearly double our closest competitor, with complete range of transformers, components & service Access to world’s largest installed base with >500,000 assets, $230B value in 140+ countries Grid AutomationGrid Integration (HVDC & Power Quality)High Voltage Transformers Service © 2025 Hitachi Energy. All rights reserved 1Giga Volt-Ampere. 2Gigawatt. 3High-Voltage Direct Current. BU market share based on internal estimates on unconsolidated market. title updated (Sector vs. HE)
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Contents 1. Current Position & Recap Inspire 2027 2. Market Development & Outlook 3. Profitable and Sustainable Growth Strategy – Inspire 2027 4. Conclusion – Update on Future Outlook 6 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Global electricity demand is projected to increase over 70% Global total final energy demand is projected to increase only moderately, by about 15%-20% Electrons are Replacing Molecules Increase of electricity share Source: World Energy Outlook report by the International Energy Agency (IEA) 2035 Electricity 37,371 TWh 2022 21,800 TWh “The ‘Age of Electricity’ has officially started” IEA, October 2024 7 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved 8 EVsSteel Industry Sustainable Fuels Industrial Heat Find rep. photo Find rep. photo Find rep. photo Buildings Data Centers AI-enabled data centers: 3x Expected growth by 2030 → +125 GW* power demand → >750 large transformers needed Electrification is accelerating across sectors Sources: International Energy Agency (IEA) *The IEA calculates a value in the region of 95GW, while McKinsey and other market reports point out a value above 150 GW8 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Coal-fired power stations Hydro power Gas power plants Large nuclear reactors (LNRs) ~10-12 years ~10-15 years ~5-10 years ~15 years Small modular reactors (SMRs) Solar, onshore & offshore wind ~5-10 years ~1-7 years More Power is Needed What’s Faster, Easier, and Cheaper to Deploy? 9 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved 20242020201220082004 Conventional Renewables By 2030, renewables will represent 50% of the global installed power generation capacity, up from 28% today. +585 GW in 2024 In the electricity sector, the share of renewables is estimated to expand across regions 20% (2022) 30% (2035) 23% (2022) 55% (2035) 22% (2022) 50% (2035) 15% (2022) 39% (2035) 035) Conventional Renewables+585 GW in 2024 Sources: IEA, IRENA (Record-Breaking Annual Growth in Renewable Power Capacity) Renewable Energy Sources: Security of Supply, Affordability and Sustainability 10 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved Where Global Capital is Flowing 2x Renewables 1.4x Grids and Storage 2.4x Electrification 1.6x Nuclear Investment (2025e vs. 2015) 11 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved IEA Report: Length of planning horizons1 The power grid is much more important than ever before. 1IEA (2023), Electricity Grids and Secure Energy Transitions, IEA The global energy supercycle will continue ~10-15 years Planning Horizon Extended Primary horizon Additional Perspective Frequency CAPEX Increase 3x to 4x Major Utilities and TSOs are deploying large expansion programs £60B National Grid FY2025-2029 £22B SSEN FY2026-2031 €44B Germany during 2024 $174B U.S. during 2024 12 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Power Grids Enable the Age of Electricity The Classic Power Grid Short distances. High inertia. 01 Stability 02 Reliability 03 Security 04 Resilience 05 Flexibility 06 Energy efficiency Consumption 13 © 2025 Hitachi Energy. All rights reserved Generation
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Public © 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Power Grids Enable the Age of Electricity Hitachi is a leader in key technologies enabling the power grid of the future, including digital, power electronics and sustainable products & solutions 1High Voltage Direct Current, 2Battery Energy Storage System, 3Static synchronous compensator, 4Small Modular Reactor The Modern Power Grid Larger distances. Less inertia. – Supply/ demand balance – Inertia – Fault handling – Frequency & voltage stability Challenges – Digitally controlled power electronics: e.g. HVDC1, BESS2, STATCOM3 – Software-based solutions: e.g. Network Control, asset mgmt., energy trading & planning – SMR4 (Stable clean power) Technical solutions Consumption Generation 01 Stability 02 Reliability 03 Security 04 Resilience 05 Flexibility 06 Energy efficiency 14 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved Distance of Renewable Energy Sources: Enabled by Advanced Grid Technologies Load centers RES HVDC link Myanmar Laos Vietnam Mongo lia Russia No rth Korea Utta r Pradesh Rajasthan Gujarat Mahar ashtra HVDC link to Norway HVDC link to Denmark HVDC link to France Shetland Islands HVDC link to Belgium HVDC link to the Netherlands 15 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved HVDC Technology: The Critical Backbone of Long-Distance Transmission 50% less transmission losses than HVAC (over 1,000 km) Higher power transmission capacity or >30% lower footprint than HVAC Why better ~500 km economic distance threshold (for overhead lines) Pioneered by us in the 1950s but rarely deployed until the 2000s Up from 5 projects/y in 2021 to 23 projects/y in 2024 ~90 km economic distance threshold (for underground cables) 16 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved HVDC: Hitachi Leads with Over 50% of the Installed Base EMEA 1. HVDC Hubs in Germany (70 GW) 2. RWE HVDC link (2 GW) 3. Amprion Korridor B (4 GW) 4. Centre Manche 1&2 (2.5 GW) 5. Caithness-Moray Shetland (1.8 GW) 6. Sa.Co.I. (300 MW) 7. Integrating ScottishPower >1 M UK homes (2.2 GW) North America & Latin America 8. Champlain Hudson Power Express >1 M NYC homes (1.25 GW) 9. SunZia (3 GW) 10. Rio Madeira (6.3 GW) APAC 11. Mumbai (1 GW ) 12. Bhadla (6GW) 13. Khavda to Nagpur (6 GW) 14. Marinus Link (750MW) 14 9 8 10 6 5 7 1,2,3 4 11 12 13 >70 years pioneered by Hitachi Energy 175 GW by Hitachi Energy equipment, corresponding to >50% of today’s total installed base 375 GW New projects, capacity over next 15-20y Key projects 2024-2025 $25-35B p.a. Estimated market potential after 2027. Approx. $23B today. Outlook (excl. China) 17 © 2025 Hitachi Energy. All rights reserved
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Modern Power Grid: The Trillion Dollar Imperative Investment of Our Time >800,000km 25,000 substations 50,000 transformers Average age: >40 years Ownership: ~500 utilities; 80% privately owned. Investment p.a. until 2035: US$50-120B >350,000km 15,000 substations 30,000 transformers Average age: >30 years Ownership: Mostly national TSOs. Investment p.a. until 2035: US$70-90B >1,890,000km 60,000 substations 130,000 transformers Average age: >20 years Ownership: Two national TSOs. Investment p.a. until 2035: US$80-100B Sources: U.S. DOE, ENTSO-E, IEA HV infrastructure (>115kV) 18 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved $350B By 20302017 2018 2019 2020 2021 2022 2023 2024 2025 2035 450 251 233 205 151 125 108118115105 350 2030 ~7% CAGR 2024-2030 Estimated Market Size for Hitachi Energy ~5% CAGR 2030-2035 19 © 2025 Hitachi Energy. All rights reserved.
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© 2025 Hitachi Energy. All rights reserved 20 Contents 1. Current Position & Recap Inspire 2027 2. Market Development & Outlook 3. Profitable and Sustainable Growth Strategy – Inspire 2027 4. Conclusion – Update on Future Outlook
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved CAGR: 13-15% Outperforming Market Growth and Reinforcing our #1 Position FY2021 FY2024 FY2027 FY2030 Revenue Adjusted EBITA (%)1 $9B 6% $16B 11% $23B+ 13-15% $33B+ 16-20% Hitachi Energy In constant currency. 1 Hitachi Energy Adj. EBITA – excluding structural reform expenses in FY2021 and FY202421 © 2025 Hitachi Energy. All rights reserved.
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Sharpening our Focus on Execution Growth Productivity Capacity expansion Expand existing manufacturing sites and build new ones to address market demand Backlog $50B in FY2025, the industry’s largest, reflecting strong market demand Operational efficiency Maximizing factory utilization and productivity with standardization through our Digital Core People Growing workforce by 15,000 people through 2027 Service Digital as an enabler to address our market- leading installed base New business models Standardization & frame agreements Innovation Cementing our technology leadership with increasing R&D investments 22 © 2025 Hitachi Energy. All rights reserved. Volume leverage Optimizing and harmonizing our operations through our Digital Core
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© 2025 Hitachi Energy. All rights reserved. De-risked business model (e.g. FA & CRA, EP/EP+1) Enhanced Terms & Conditions (T&C) Improved order backlog gross margin % Growing backlog with higher margin & increased visibility Nominal rate 1 Frame Agreement (Long-Term) and Capacity Reservation Agreement, Engineering & Procurement / Engineering & Procurement Plus (i.e. not EPC, excluding Construction) 2 Order Backlog 14 50 ~10 Improved OBL2 Gross Margin % FA & CRA OBL in BUSD FY2021 H1 2025 1 2 Year 1 Year 2 Year 3 Year 4 Year 6Year 5 OBL volume FY2021 FA & CRA OBL volume H1 2025 1 2 23 © 2025 Hitachi Energy. All rights reserved. Hitachi Energy: Securing Continued Revenue & Profitability growth
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Public © 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved. 3.6 GW 3 projects Dogger Bank A, B, C From Transactional to Strategic Partnerships – Standardization – Capacity reservation – Frame agreements – De-risking (EP/EP+) 12 GW 6 projects TenneT 2GW program 10 GW 5 projects SSEN Transmission 20,000+ Transformers $700Mn / 8y E.ON De-risked Business Model: Moving from Projects to Programs for Visibility and Security to Invest 24 © 2025 Hitachi Energy. All rights reserved.
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© 2025 Hitachi Energy. All rights reserved.Public © 2025 Hitachi Energy. All rights reserved. Investments in manufacturing, engineering, digital, R&D and partnerships across all major markets. This includes investments to ramp up Hitachi Energy’s global transformer manufacturing capacity. 2024-2025 announcements. 2020-2023 2024-2027 $6B$3B $>1.5B North America 10,000 employees by 2027 $100M China 6,000 employees by 2027 $200M South America 3,300 employees by 2027 $>1.5B Europe 32,000 employees by 2027 $250M India 12,000 employees by 2027 $9B Deploying the Largest Investment Program in the Industry: Capacity Expansion Deliver our backlog: Invest in bankable Business Cases 25 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved − Flexible rerouting or supply from a different factory in case of any challenges One Single ERP System Diversified Supply Chain Process Optimization Contributing to our profit ambition with +$150-250M p.a. by 2030 Operational Efficiency Enabled by Digital − Process Automation leveraging AI & process mining via Celonis − Operational efficiency programs to optimize use of materials & delivery time (critical path) − Across all countries and factories − Integrating suppliers and customers 26 © 2025 Hitachi Energy. All rights reserved.
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Public © 2025 Hitachi Energy. All rights reserved Service: Large Installed Base. Low Service Penetration. Huge Growth Opportunity. Large installed base: >500,000 assets, $230B value, <1% existing service agreements Digital at the Core: HMAX across Hitachi Group Digital Passport System #1 Service provider 4-5x Service business Objectives Roadmap Horizon X Capture the Digital & Service opportunity, extend lifecyle of existing assets Service BU established April 1: Global footprint with presence in >60 countries Improved margin profile Horizon Y Develop fully proficient digital service business Horizon Z Transform to a service-first company 27 © 2025 Hitachi Energy. All rights reserved.
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Public © 2025 Hitachi Energy. All rights reserved Service Business Unit established this year: Consolidate, Develop, Expand >60 Countries with local Service units #1 Installed base, with 500k+ assets >6,500 Service employees, leveraging an ecosystem of >50,000 Strategic business growth & resilience Trusted long-term partnership Accretive & recurrent profile $1B by 2030 Investment in workforce expansion/qualification and digital service solutions, like HMAX 28 © 2025 Hitachi Energy. All rights reserved Hitachi Energy Service Business Hitachi Energy Installed Base
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Public © 2025 Hitachi Energy. All rights reserved Service enabled by digital and powered by AI: HMAX to Predict instead of React Condition assessment Technical & emergency support Virtual training Cybersecurity services Predictive & corrective maintenance Spare parts management Remote Monitoring Advisory on lifecycle, digital, sustainability – Connected assets – Cloud-based Platforms & Analytics – Predictive maintenance – HMAX as enabler for efficiency increase HMAX drives value for our customers Uptime & availability Lifetime extension Safety & Security Efficiency increase 29 © 2025 Hitachi Energy. All rights reserved
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2030 ~1.5 ~2.5 6 - 8 20242021 Service includes Software, and select service activities delivered through systems & projects 30 Ambition to become #1 in Service Sustain high double-digit growth through 2030, organically & inorganically +12% Service revenues, BUSD ~+15-20% Serving as a downward protection lever post-super cycle Non-Service >30% Service 2035 Revenues, Hitachi Energy 15% Non-Service Service 2024 © 2025 Hitachi Energy. All rights reserved. Inorganic Profitable & accretive margins from recurring business Strategically driving service in company portfolio-mix
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First Success for Inorganic Growth in Service First large Service Investment accomplished – Strategic partnership with Blackstone to create a Service champion in North America – First step: Taking a stake in Shermco 31 © 2025 Hitachi Energy. All rights reserved
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©Hitachi, Ltd. 2025. All rights reserved 32 Grid Digitalization Investments: Boosting Growth in Lumada Revenues According to IEA & BloombergNEF, spending on digital solutions is set to grow significantly as a share of total grid CAPEX p.a.1 2023 p.a.1 2016 20% 12% More investment in digitalization of the future grid Lumada 4x Lumada Revenues 2024 2025 2026 2027 1IEA World Energy Investment 2023 32 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved Innovation: Hitachi pioneered modern power transmission Power Semiconductors HVDC Network Manager EconiQ SF6-free gas-insulated switchgear 33 © 2025 Hitachi Energy. All rights reserved
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Sustaining #1 Leadership: Inorganic Growth and Strategic Partnerships Strengthen the Core01 Expand Digital & Services02 Innovate & Collaborate03 M&A Priorities 34 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved 35 Contents 1. Current Position & Recap Inspire 2027 2. Market Development & Outlook 3. Profitable and Sustainable Growth Strategy – Inspire 2027 4. Conclusion – Update on Future Outlook
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Public © 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved With a strong foothold in attractive markets and a track record of pioneering technology, we’re set to outpace market growth and sustain industry leadership. Focus on operational excellence Accelerate strategic growth – Become #1 Service Provider – Investing in capacity expansion Leverage digitalization & innovative technology Key Priorities Creating Shareholder value: Positioned to Outgrow the Market and Keep Leading 01 02 03 36 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved Revenues CAGR 2024-2030 Adjusted EBITA1 2030 ROIC2 2024-2030 Our 2030 Ambition 1 Adj. EBITA adjusted operating income plus acquisition-related amortization. 2 Hitachi Energy standalone ROIC. 13-15% 16-20% 25-30% 37 © 2025 Hitachi Energy. All rights reserved
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©Hitachi, Ltd. 2025. All rights reserved Cautionary Statement 39 Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this report. Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to: ◼ economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major markets, as well as levels of demand in the major industrial sectors Hitachi serves; ◼ exchange rate fluctuations of the yen against other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated; ◼ uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing; ◼ uncertainty as to general market price levels for equity securities, declines in which may require Hitachi to write down equity securities that it holds; ◼ fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components; ◼ credit conditions of Hitachi’s customers and suppliers; ◼ general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports and differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations; ◼ uncertainty as to Hitachi’s ability to response to tightening of regulations to prevent climate change; ◼ uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information or that of its customers; ◼ uncertainty as to Hitachi’s ability to attract and retain skilled personnel; ◼ uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance for such products; ◼ the possibility of disruption of Hitachi’s operations by natural disasters such as earthquakes and tsunamis, the spread of infectious diseases, and geopolitical and social instability such as terrorism and conflict; ◼ estimates, fluctuations in cost and cancellation of long-term projects for which Hitachi uses the percentage-of-completion method to recognize revenue from sales; ◼ increased commoditization of and intensifying price competition for products; ◼ fluctuations in demand of products, etc. and industry capacity; ◼ uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in demand of products, etc., exchange rates and/or price of raw materials or shortages of materials, parts and components; ◼ uncertainty as to the success of cost structure overhaul; ◼ uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business; ◼ uncertainty as to the success of acquisitions of other companies, joint ventures and strategic alliances and the possibility of incurring related expenses; ◼ uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness; ◼ the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures; ◼ uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity-method associates and joint ventures have become or may become parties; ◼ the possibility of incurring expenses resulting from any defects in products or services of Hitachi; ◼ uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property; and ◼ uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee benefit-related costs. The factors listed above are not all-inclusive and are in addition to other factors contained elsewhere in this report and in other materials published by Hitachi. * This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
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© 2025 Hitachi Energy. All rights reserved Technologies Powering the Modern Grid Gerhard Salge CTO, Hitachi Energy Date October 30, 2025 Hitachi Energy
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Public © 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved The Power System Evolution: Our Energy Portfolio Transportation Power transmission Power distribution Solar Conventional generation with rotating machines Offshore wind Onshore wind Industries Power generation Power transmission and distribution Market Segments (Demand) Power system Energy storage Residential & Buildings Grid Automation Grid Integration High Voltage Products Service Transformers Nuclear 2 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved The Classic Power Grid was less complex in the past Generation “The Grid” System Conditions – Dispatchable generation – Predictable Demand – Unidirectional power flow – Predominantly AC Operational Challenges – Grid Congestions – Demand Patterns – Frequency Stability – Voltage Stability Demand Generation 3 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved The Future Power Grid will be much bigger, and much more complex “The Grid” System Conditions – Fluctuating generation – Prosumers – Bidirectional power flow – Mixed AC-DC grids Operational Challenges – Grid Congestions – Demand Patterns – Frequency Stability – Voltage Stability Demand & Generation Generation 4 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Operational Challenges: Grid Congestions 01 Grid Congestions 02 Demand Patterns 03 Frequency Stability 04 Voltage Stability Korridor B HVDC project to transport wind energy from the North Sea coast to the Ruhr Region +$2B USD to support Germany’s energy transition Enabled by HVDC technology Enough to provide power to 4 million people HEIDE CUXHAVEN WILHELMSHAVEN HAMM GERMANYNETHERLANDS NORTH SEA EASTERN GREEN LINK 2 UNITED KINGDOM NETHERLANDS PETERHEAD DRAX 5 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Operational Challenges: Demand Patterns 01 Grid Congestions 02 Demand Patterns 03 Frequency Stability 04 Voltage Stability 80 60 40 20 0 -20 -40 -60 Demand, GW 0 2 4 6 8 10 12 14 16 18 20 22 Total/Residual Demand 2008 Residual Demand 2023 Residual Demand 2030 (estimate) Total Demand 2023 Total Demand 2030 (estimate) 1. Total Demand = The sum of all energy demands within a modeled system 2. Residual Demand: Total Demand - (wind + solar photo voltaic generation) Sources: Hitachi Energy studies, IEA Example: Germany 6 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Operational Challenges: Frequency Stability 01 Grid Congestions 02 Demand Patterns 03 04 Voltage Stability >2 times inertia than traditional solutions (similar rating) Fast frequency response and primary frequency response DC Frequency Stability Inertia is acting against change Frequency Stability requires Inertia 7 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Operational Challenges: Frequency Stability 01 Grid Congestions 02 Demand Patterns 03 Voltage Stability04 Frequency Stability Inertia can be provided by rotating masses, but also via other types of energy storage System Inertia is Critical for Frequency Stability BESS Power Electronics 8 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Operational Challenges: Voltage Stability 01 Grid Congestions 02 Demand Patterns 03 Voltage Stability04 Frequency Stability Reactive Power Critical to ensure Voltage Stability 9 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved 10 Placeholder for video
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Hitachi has pioneered HVDC >70 years ago, and since then leading the technology development and deployment >50% World installed base equipped with Hitachi Energy’s HVDC components & systems 1954 World’s first HVDC transmission line (Sweden) Most powerful & longest HVDC link 12GW, >3,000 km Changji-Guquan, China 1st Ultra-High-Voltage Multi-Terminal North-East Agra, India 1st HVDC grid in Europe Caithness-Morray Shetland Multi-Terminal solution Longest sub-sea interconnector North Sea Link, UK to Norway, 720 km Largest wind farm connection Dogger Bank Wind Farm, UK 11 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved Hitachi has all solutions for interconnecting countries, regions and markets In 2030, we expect to 2x our HVDC project pipeline compared to today1 Distance HVDC terminal costs Breakeven distance Investment AC terminal costs HVDC HVAC 1Baseline FY202412 © 2025 Hitachi Energy. All rights reserved 50% less transmission losses than HVAC (over 1,000 km) Higher power transmission capacity or >30% lower footprint ~90 km breakeven distance for underground cables ~500 km breakeven distance for transmission overhead lines HVDC technology advantages
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Public © 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved Reactive Power – Voltage stability in a Steel plant with Electric Arc Furnaces 3 electrodes Electric arc Molten bath STATCOM Value proposition for the Steel Industry: 14% increase in steel production2 1Baseline FY2024 2Based on steel plant in Sweden In 2030, we expect to >2x our annual orders compared to today1 13 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved Connecting Electrical Rail Networks to Utility Systems Today Tomorrow Neutral zones required No neutral zones required One substation per zone Up to 50% less substations High Voltage connection required Medium Voltage connection sufficient Energy flow from utility to rail only Bi-directional energy flow enables use of breaking energy In 2030, we expect to 2x our annual orders compared to today1 1Baseline FY202414 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Australia: Waratah Super Battery, an 850 MW 2-hour project Queensland AUSTRALIA Alice Springs Mount Isa Northern Territory South Australia Broken Hill New South Wales Griffith Victoria Melbourne Brisbane Armidale Sydney Rockhampton Townsville Cairns In 2030, we expect to 2x our annual orders compared to today1 1Baseline FY202415 © 2025 Hitachi Energy. All rights reserved Waratah Super Battery Transmission Lines 500 kV Transmission Line 330 kV Transmission Line 275 kV Transmission Line 220 kV Transmission Line 132/110kV Transmission Line
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Managing the Future Power System MAINTAIN the Assets MONETIZE the Energy RUN the Network 16 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Offering IT, OT, and products The Completeness of Our Portfolio MAINTAIN the Assets MONETIZE the Energy Managing the Future Power System 17 © 2025 Hitachi Energy. All rights reserved RUN the Network ONE HITACHI
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Offering IT, OT, and products The Completeness of Our Portfolio MAINTAIN the Assets MONETIZE the Energy ONE HITACHI In 2030, we expect to 2x our annual orders compared to today1 Managing the Future Power System 18 © 2025 Hitachi Energy. All rights reserved RUN the Network >120 Customers are trusting Network Manager
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved The space Air-insulated Switchgear (AIS) requires is too big for space-constrained installations 19 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved 1/7 of Central Park Powering New York with AIS substations would take up the equivalent of 20 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Hitachi Energy spearheaded the future more than 50 years ago It’s time for the next (r)evolution High-voltage SF6-free GIS Switchgear, with the same dimensions! We pioneered the high-voltage Gas-insulated Switchgear (GIS) Reducing space uptake by >90% 21 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved TenneT Delivering the world’s first SF6-free 420 kV GIS Switchgear 22 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved In 2030 we expect to deliver 60% of our High Voltage Switchgear SF 6 - free Hitachi Energy is leading the technology 23 © 2025 Hitachi Energy. All rights reserved
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Technology is ready for the future – no reason to wait What is missing can be developed while scaling the infrastructure Grid Automation Grid Integration High Voltage Products Service Transformers Nuclear Hitachi has the largest global installed base Hitachi is unique in technology scope Hitachi is leading the Energy Transition toward the "Age of Electricity" The Power System Evolution: Technology is ready 24 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved Hitachi Energy Building the Global Service Leader Date October 30, 2025 Wolf Mueller Managing Director, Service Business Unit, Hitachi Energy
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Public © 2025 Hitachi Energy. All rights reserved $230B Worth of installed base in 2025 +500,000 Transmission assets installed globally >190 Countries with installed base Building on a century of technology leadership, we commissioned the world’s largest installed base Our ambition #1 in Service 2 © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved ©Hitachi Energy Ltd 2025. All rights reserved Hitachi Energy Service delivers value & impact for customers Digital upgrade for Rio Madeira HVDC system Delivering reliable power to Thailand by maximizing existing lifetime Improving ERG's operational efficiency with digital solutions Contributing to Scotland’s net- zero goals with EconiQ® Retrofill upgrade Enhancing reliability and safety of Liaoning's grid Sustainability-linked upgrade Digital service agreement Lifetime assessment & extension Digital monitoring solution Preventive maintenance 3 © 2025 Hitachi Energy. All rights reserved
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Multiple megatrends underscore service tailwinds New growth segments Evolving customer needs (e.g. data centers) Utilities Aging grids, labor shortage & capacity constraints Digital & AI revolutionize service delivery Sustainability & circularity driven by regulatory mandates and business needs Security: physical & cyber concerns, natural disasters, climate threats 4 © 2025 Hitachi Energy. All rights reserved
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Service builds on major installed base opportunity 1Indicative sizing Source: IEA, Hitachi Energy analysis, and McKinsey study *Transmission & Distribution 2x Installed base… …and 3x the Service market 2 Grid expansion New installations to grow at 6% CAGR Aging installed base 80% of assets to be there in 2035 1 Growth segments drive system-level demand Global T&D* asset base to grow & age 2024 20+ Addressable Market +10% CAGR Service market (BUSD) Total Market 100+ 2035 205 218 2020 2024 230 2022 2035 +6% CAGR Hitachi Energy existing infrastructure Hitachi Energy new infrastructure Third-party infrastructure Cumulative Installed Base value (BUSD) 3 5 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved 6 Hitachi Energy uniquely positioned for Service championship OEM Expertise Digital Capabilities Leading Installed Base #1 Service Provider Hitachi Energy OEM1 Expertise 100+ years of technology leadership; deep product, system & domain expertise Leading Installed Base $230B+ in assets; unapparelled foundation for asset intelligence Hitachi Digital Capabilities 30,000+ digital engineers as part of Hitachi Group, offering unique IT lever for domain-knowledge Three core pillars of Service proficiency 1Original Equipment Manufacturer Leading local service footprint and dedicated Service Business 6 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved Dedicated global Service Business, pioneering strategic approach >60 Countries with local Service units #1 Installed base, with 500k+ assets >6,500 Service employees, leveraging an ecosystem of >50,000 7 © 2025 Hitachi Energy. All rights reserved Strategic business growth & resilience Trusted long-term partnership Accretive & recurrent profile Hitachi Energy Service Business Hitachi Energy Installed Base
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Public © 2025 Hitachi Energy. All rights reserved Strategically develop Service business organically & inorganically Horizon X Becoming best in class Service OEM Horizon Y Develop customer-centric approach Horizon Z Transform into a solution & service-first enterprise • System-level services including third party assets • Accelerate HMAX Energy portfolio • Business model innovation: as-a-Service, and outcome- based lifecycle partnerships • Focus on own installed base • Inorganically expand market & portfolio • Launch HMAX Energy (IoT-enabled solutions) Digital & AI Proficiency through HMAX Energy 8 © 2025 Hitachi Energy. All rights reserved
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Public © 2025 Hitachi Energy. All rights reserved HMAX Energy Unlocking hidden value from critical infrastructure with AI-powered intelligence Connected assets + OT + AI/Digital Digitally-enabled services Connecting the world’s largest power infrastructure Driving value for customers Uptime & availability Safety & security Lifetime extension Efficiency increase Digital capabilities Domain knowledge Service excellence Installed base intelligence Automated inspection Predictive analytics Real time monitoring Virtual support © 2025 Hitachi Energy. All rights reserved 9
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Public © 2025 Hitachi Energy. All rights reserved All number indicative benefits 1Plug And Switch System Switchgear -35% Time spent on site inspection activities +26 Factories integrated Time to trace critical components Digital Passport Solution | Internal system, Global Cloud-based platform to provide full traceability, quality of critical components across the entire value chain – from suppliers to production to the installed base infrastructure 10 © 2025 Hitachi Energy. All rights reserved HMAX Energy built upon strong reference cases -90% Reduction in response time to incidents HVDC Link uptime with remote support & preventive maintenance Digital-enabled Service Agreement | Italy Maximize uptime of power supply by remotely monitoring PASS1 health and dynamically optimizing its maintenance plan Digital Twin for HVDC | Germany-Sweden Simplify complex system operations & maintenance via real-time data, visualization, and advanced analytics Unplanned outage days
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11 Significant Service investments 1Organic investments in production capacity, service offering, engineers, and R&D. This includes investments to ramp up Hitachi Energy’s service capacity. All figures in USD. Service investments1 >$1B Workforce expansion + 5,000 2025-2030 2025-2030 Service footprint development OPEX, CAPEX Service Academy Power of Learning: upskilling in Digital & Service capabilities HMAX Energy Digitally-enabled, AI-powered services R&D and Technology Development of proprietary solutions for installed base 11 © 2025 Hitachi Energy. All rights reserved
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12 First Inorganic Growth Success in Service: Shermco Cornerstone Stake via Strategic Partnership with Blackstone Leading Grid Technology Player OEM1 with deep domain expertise Digital & AI capabilities (HMAX) Nation-wide branch network Highly-skilled field workforce Enabler for Datacenter services Leading Private Equity Broad portfolio Innovation catalyst 1Original Equipment Manufacturer Global leaders driving service innovation for critical energy infrastructure, and building the North American Energy Service Leader 12 © 2025 Hitachi Energy. All rights reserved
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2030 ~1.5 ~2.5 6 - 8 20242021 Service includes Software, and select service activities delivered through systems & projects 13 Ambition to become #1 in Service Sustain high double-digit growth through 2030, organically & inorganically +12% Service revenues, BUSD ~+15-20% Serving as a downward protection lever post-super cycle Non-Service >30% Service 2035 Revenues, Hitachi Energy 15% Non-Service Service 2024 © 2025 Hitachi Energy. All rights reserved. Inorganic Profitable & accretive margins from recurring business Strategically driving service in company portfolio-mix
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Hitachi Energy is uniquely positioned to be #1 in Service Strategically invest in people, partnerships and solutions Solution- & Service-first enterprise High value portfolio-mix & business resiliency 14 ©Hitachi, Ltd. 2025. All rights reserved Secular tailwinds & robust market outlook Largest installed base, T&D domain & digital expertise
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© 2025 Hitachi Energy. All rights reserved Financial Performance and Growth Outlook Hitachi Energy Ismo Haka CFO, Hitachi Energy Date October 30, 2025
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© 2025 Hitachi Energy. All rights reserved Revenues CAGR Target 2021-2024 12-15% Actual 21% Adjusted EBITA1 Target 2024 8-12% (6.1% in 2021) Actual 11.1% ROIC2 MMP Target 2024 15% Actual 25% We delivered higher growth across our portfolio We continuously improved our operations We accelerated cash conversion 2 In nominal rate. 1 Adj. EBITA adjusted operating income plus acquisition-related amortization. In FY2024, includes equity in earnings (losses) of affiliates, excl. structural reform expenses 2 Hitachi Energy standalone ROIC We exceeded our 2024 Mid-term Management Plan © 2025 Hitachi Energy. All rights reserved
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Our 2030 Ambition 3 1 Adj. EBITA adjusted operating income plus acquisition-related amortization. 2 Hitachi Energy standalone ROIC. Revenues CAGR 2024-2030 Adjusted EBITA1 2030 ROIC2 2024-2030 13-15% 16-20% 25-30% © 2025 Hitachi Energy. All rights reserved
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Sharpening our Focus on Execution Growth Productivity Capacity expansion Expand existing manufacturing sites and build new ones to address market demand Backlog $50B in FY2025, the industry’s largest, reflecting strong market demand Operational efficiency Maximizing factory utilization and productivity with standardization through our Digital Core People Growing workforce by 15,000 people through 2027 Service Digital as an enabler to address our market- leading installed base New business models Standardization & frame agreements Innovation Cementing our technology leadership with increasing R&D investments 4 © 2025 Hitachi Energy. All rights reserved. Volume leverage Optimizing and harmonizing our operations through our Digital Core
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Public © 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved $350B By 20302017 2018 2019 2020 2021 2022 2023 2024 2025 2035 450 251 233 205 151 125 108118115105 350 2030 ~7% CAGR 2024-2030 Estimated Market Size for Hitachi Energy ~5% CAGR 2030-2035 5 © 2025 Hitachi Energy. All rights reserved.
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Targeting high growth segments in the market 3x Data centers 5x Eco-efficient products 3-4x Service and Digital (Lumada) 6 © 2025 Hitachi Energy. All rights reserved Over period 2024-2030.
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© 2025 Hitachi Energy. All rights reserved. De-risked business model (e.g. FA & CRA, EP/EP+1) Enhanced Terms & Conditions (T&C) Improved order backlog gross margin % Growing backlog with higher margin & increased visibility Nominal rate 1 Frame Agreement (Long-Term) and Capacity Reservation Agreement, Engineering & Procurement / Engineering & Procurement Plus (i.e. not EPC, excluding Construction) 2 Order Backlog 14 50 ~10 Improved OBL2 Gross Margin % FA & CRA OBL in BUSD FY2021 H1 2025 1 2 Year 1 Year 2 Year 3 Year 4 Year 6Year 5 OBL volume FY2021 FA & CRA OBL volume H1 2025 1 2 7 © 2025 Hitachi Energy. All rights reserved. Hitachi Energy: Securing Continued Revenue & Profitability growth
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved $9 billion of investments in production capacity, service offering, engineers, partnerships and R&D 8 © 2025 Hitachi Energy. All rights reserved Disciplined approach to existing capacity optimization and new investments Global network of manufacturing capacity and service capabilities 10-15 years of market visibility on grid demands and investments Record order backlog, capacity reservation agreements and frame agreements 1 Over period 2024-2030. 2.5x Valves 4x Dry Capacitors 2x Semiconductors 2.5x HVDC transformers 2x Power transformers 2x Switchgear Production Capacity Increase1
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Enablers of Revenue Growth to Maintain #1 Position Execution Market Revenues/capacity scale-up 9 © 2025 Hitachi Energy. All rights reserved FY2021 FY2024 FY2027 FY2030 $9B $16B $23B+ $33B+ ~$2B CAPEX in FY2023-25: optimizing existing and disciplined investment in new factories +15,000 colleagues in 2024-2027 Digitalization of Operations ~$2B CAPEX in FY2026-28, optimizing existing and disciplined investment in new factories AI embedded throughout our operations Productivity measures Shift increases in factories Proactive CAPEX investments Deployment of our Digital Core (S4/HANA, Workday, etc.) CAGR: 13-15% In constant currency
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© 2025 Hitachi Energy. All rights reserved 10 01 Productivity through our Digital Core and AI 02 Agility and resilience in our operations 03 One Hitachi synergies 04 Increase investment in innovation Volume leverage supports expanding margins Sales cost % Admin cost %
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved 11 Unlocking profitable growth In constant currency 1 Adj. EBITA adjusted operating income plus acquisition-related amortization. In FY2024, includes equity in earnings (losses) of affiliates, excluding structural reform expenses © 2025 Hitachi Energy. All rights reserved 2024 Actual Volume Margin increase incl. Lumada R&D Other Enablers 2030 Ambition 11% 16~20% Adjusted EBITA1 Bridge to 2030 Ambition Key value drivers Volume Margin increase including Lumada Other Enablers Capacity expansion enables additional volume, driving operational efficiencies and lower SG&A% Margin increase from order backlog and expanding share of Service & Digital revenue, delivering margin accretion - Inorganic growth - Operational excellence driving further margin improvements - Additional capacity expansion, beyond existing plans
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© 2025 Hitachi Energy. All rights reserved Maintaining a solid ROIC through our growth and investment cycle Fixed Assets, NOWC1 & Capital Invested Cash Conversion Cycle ROIC %2 12 © 2025 Hitachi Energy. All rights reserved Meeting market demand through capacity optimization and expansion funded by record negative net working capital Improving ROIC while making growth-enabling investments Targeting an average cash conversion ratio of 90% over the supercycle to fund disciplined investments for growth 8% 26% NOWC1 Fixed Assets Capital Invested 30% 25% 2021 2024 2027 20302021 2024 2027 20302021 2024 2027 2030 0 CFO (Operating Cash Flow) Cash Conversion Ratio 90% In constant currency 1 Net operating working capital 2 Hitachi Energy standalone ROIC.
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© 2025 Hitachi Energy. All rights reserved Revenue BUSD Adjusted EBITA1 % ROIC %2 Ambition 2030 13 © 2025 Hitachi Energy. All rights reserved 25-30% 2024 2027 2030 2024 2027 2030 16 23+ 33+ +13-15% 11% 15% 13% 20% 16% In constant currency 1 Adj. EBITA adjusted operating income plus acquisition-related amortization. In FY2024, includes equity in earnings (losses) of affiliates, excluding structural reform expenses. 2 Hitachi Energy standalone ROIC.
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© 2025 Hitachi Energy. All rights reserved © 2025 Hitachi Energy. All rights reserved Hitachi Group Company | Hitachi Energy Investor Day14 Key Takeaways Energy transition driving attractive market growth leading to mid-teens revenue CAGR between 2024-2030 Revenue growth, relentless gross margin drive and volume leverage with focus on high growth, margin accretive offerings (Service and Digital) enable a 16-20% Adjusted EBITA1 margin Disciplined investments in optimization and expansion of capacity combined with higher profit results in ROIC2 between 25- 30% and average cash flow conversion above 90% Scaling up for the next era of profitable growth and high returns 01 02 03 1 Adj. EBITA adjusted operating income plus acquisition-related amortization 2 Hitachi Energy standalone ROIC. 14 © 2025 Hitachi Energy. All rights reserved
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©Hitachi, Ltd. 2025. All rights reserved 1616 Cautionary Statement 16 Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this report. Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to: ◼ economic conditions, including consumer spending and plant and equipment investment in Hitachi’s major markets, as well as levels of demand in the major industrial sectors Hitachi serves; ◼ exchange rate fluctuations of the yen against other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated; ◼ uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing; ◼ uncertainty as to general market price levels for equity securities, declines in which may require Hitachi to write down equity securities that it holds; ◼ fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components; ◼ credit conditions of Hitachi’s customers and suppliers; ◼ general socioeconomic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports and differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations; ◼ uncertainty as to Hitachi’s ability to response to tightening of regulations to prevent climate change; ◼ uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information or that of its customers; ◼ uncertainty as to Hitachi’s ability to attract and retain skilled personnel; ◼ uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technologies on a timely and cost-effective basis and to achieve market acceptance for such products; ◼ the possibility of disruption of Hitachi’s operations by natural disasters such as earthquakes and tsunamis, the spread of infectious diseases, and geopolitical and social instability such as terrorism and conflict; ◼ estimates, fluctuations in cost and cancellation of long-term projects for which Hitachi uses the percentage-of-completion method to recognize revenue from sales; ◼ increased commoditization of and intensifying price competition for products; ◼ fluctuations in demand of products, etc. and industry capacity; ◼ uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in demand of products, etc., exchange rates and/or price of raw materials or shortages of materials, parts and components; ◼ uncertainty as to the success of cost structure overhaul; ◼ uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business; ◼ uncertainty as to the success of acquisitions of other companies, joint ventures and strategic alliances and the possibility of incurring related expenses; ◼ uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness; ◼ the potential for significant losses on Hitachi’s investments in equity-method associates and joint ventures; ◼ uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity-method associates and joint ventures have become or may become parties; ◼ the possibility of incurring expenses resulting from any defects in products or services of Hitachi; ◼ uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property; and ◼ uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate its employee benefit-related costs. The factors listed above are not all-inclusive and are in addition to other factors contained elsewhere in this report and in other materials published by Hitachi. * This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.