Hitachi (6501) Investor presentation summary

Progress and aspirations of Inspire 2027

• Aims to contribute to a harmonized society and achieve sustainable growth through the True One Hitachi approach, focusing on wellbeing, green, and digital innovation.

• Targets by FY2027 include a Lumada revenue ratio of 50%, adjusted EBITA margin of 18%, and ROIC of 13-15%.

• Emphasizes organic growth and co-creation for society, leveraging Lumada 3.0 and digital transformation.

Lumada business and digital transformation

• Lumada business expansion drove company-wide revenue growth and improved profitability, with recurring digital service HMAX fully operational.

• FY2025 Lumada revenue reached 4.1 trillion yen, with a revenue ratio of 40% and adjusted EBITA margin of 16%.

• HMAX applications reduced incident response time for power facilities by 90% and improved productivity in mobility and industry sectors.

Financial performance and capital allocation

• FY2025 revenue grew to 10.6 trillion yen (+8.2% YoY), with adjusted EBITA margin at 12.4% and ROIC at 12.4%.

• Core free cash flow increased by 50% YoY to 1.2 trillion yen, supporting stable dividend growth and flexible share buybacks.

• Asset sales and growth investments focused on portfolio transformation and expanding energy services in North America.