new medium-term management plan ”change & growth · 5/11/2017 · © 2017 hitachi zosen...

© 2017 Hitachi Zosen Corp.

New Medium-Term Management Plan ”Change & Growth”

New Long-Term Vision ”Hitz 2030 Vision”

May 11, 2017Hitachi Zosen Corporation

Representative DirectorChairman & President Takashi Tanisho

© 2017 Hitachi Zosen Corp. 2

1. Review of former Medium-Term Management Plan“Hitz Vision Ⅱ”

2. New Long-Term Vision ”Hitz 2030 Vision”

3. New Medium-Term Management Plan ”Change & Growth”

4. Support Documentation

Contents


1. Review of former Medium-Term Management Plan“Hitz Vision Ⅱ”


Achievement of “Hitz Vision Ⅱ” (Consolidated)

Original plan of Hitz VisionⅡ Results of Hitz VisionⅡ(Achievement Rate)

FY2014 FY2015 FY20163 years

totalFY2014 FY2015 FY2016

3 years total

Order intake 400 450 500 1,350 452.7(113%)

435.4(96%)

398.9(80%)

1,287(95%)

N e t s a l e s 320 350 400 1,070 359.3(112%)

387(110%)

399.3(99%)

1,145.6(107%)

O p e r a t i n gi n c o m e

10 17 23 50 12.8(128%)

15.1(88%)

14.9(65%)

42.8(86%)

O r d i n a r yi n c o m e

8 14 20 42 7.5(93%)

12.2(87%)

11.2(56%)

30.9(74%)

Net income 4 8 13 25 5.1(127%)

5.8(72%)

5.8(45%)

16.7(67%)

I n t e r e s t -bearing debt

131.1 126 120 - 119 105.1 109.2 -

Shareholder’sequity ratio

27.6% 28.6% 30.6% - 26.6% 28.4% 29.4% -

（Unit: Billion Yen）

We have achieved the target toward business scale, but have to continue to improve earning capacity


Evaluation of Management Targets and Actions

No. Management Targets Evaluation

１

Strengthen profitability

Each business and product to

achieve No. 1 profitability in its

area

Engineering：AOM leads growth of engineering

Manufacturing ： Continuing slump

Troubles of marine diesel engines and

systematic machinery.

Projects troubles and technical

problem related to overseas

２Expand business scale

Expand to Yen 500 billion

company with public recognition

INOVA, NAC and large-scale desalination project

contribute increase of overseas net sales to

approximately JPY 500 billion

３

Fortify financial structure

Achieve and maintain at least

30% shareholders’ equity ratio,

and secure a stable financial

position

Shareholder’s equity ratio is 29%

Increase endurance to financial risk by

subordinated loan

AOM: After service, Operation and Maintenance


Numerical Result

0

100

200

300

400

EnvironmentalSystems &

Industrial Plants

Machinery Infrastructure Others

Order Intake

2014(Plan)

2014(Actural)

2015(Plan)

2015(Actual)

2016(Plan)

2016(Actural)

（Billion Yen）

0

100

200

300

400


Industrial Plants


Net Sales

2014(Plan)

2014(Actural)

2015(Plan)

2015(Actual)

2016(Plan)

2016(Actural)

（Billion Yen）

-5

0

5

10

15

20


Industrial Plants


Operating Income

2014(Plan)

2014(Actural)

2015(Plan)

2015(Actual)

2016(Plan)

2016(Actural)

（Billion Yen）

◆Business Scale: Received Large-scale desalination plantExpanded Domestic environment solution business

◆Profitability:・Engineering: Expanded Domestic environment solution

business ・Manufacturing: Continuing slump by troubles related to

overseas (projects, acquisition activitiesand JV）and technical problem


FY2010 FY2014 FY2015 FY2016

Domestic Business

237.5 83% 237.1 66% 258.1 67% 268.5 67%

OverseasBusiness

49.6 17% 122.2 34% 128.9 33% 130.8 33%

Total 287.1 100% 359.3 100% 387 100% 399.3 100%

Stable Business（AOM etc.）

115.5 40% 136.1 38% 148.5 38% 158.4 40%

New ProductsNew Businesses

－－ 3.2 1% 11.5 3% 21.2 5%

Strengthen Profitability Status of Balanced Management

（Unit: Billion Yen）

Numerical Targets (Actual of FY2010)→(Target of FY2016)

Overseas Business Stable Business New Products New Businesses

17%→30% 40%→50% →50 bn. JPY


Expand Business Scale

Hitz：Develop markets of developing countries centered around SE Asia

HZI：Expand business areas in European markets and strengthen O&M business (M&A)

India/Under operation(600t/d 11,500kW)

Malaysia/First Order(600t/d 18,000kW)

Vietnam/Under demonstrated operation (75t/d 1,930kW)

Thailand/First Order（460t/d 7,900kW）Thailand/Offer（370t/d 6,000kW）

EfW：Expand and strengthen business in Europe(HZI) and SE Asia (Hitz)

HZIBM(GER) 2015.3～Biogas Purification System

HZIKRB(CHE)2010.12～Boiler Parts and Maintenance for EfW

HZIS(SVK)2017.1～Design for EfW

HZIK(GER) 2014.12～Maintenance for EfW

HZIE(GER)2016.10～/Power to Gas(Synthesis Methane Production)

HZI(Asset Purchase for Kompogas)2014.10～ (Dry Biogas)

1 2

StrengthenAOM

Expand business

areas

Expand business

areas

Expand business

areas

Strengthenengineering

StrengthenAOM


CHL

UAE

Advantages of Hitz Advantage of OSMOFLO

MSF/MED method Large-scale

installations in the Middle East

RO method AOM Rentals

Design・Sales・Manufacture・Operation of Desalination and Industrial Wastewater Treatment System

AUS

LHLight House

Remote Monitoring System Network

Territory

LHEU LH

JAPAN

Territory

LHUSA

LH（OSMOFLO)AUSTRALIA

Plant Connect*

Expand Business Scale

Desalination Business：Expand and enhance business by achieve RO method and the delivery records（Acquisition of OSMOFLO）

Remote Monitoring System

*Plant Connect:Remote Monitoring System by OSMOFLO

Cover for each other

Base for Remote Monitoring System (Light House)

INDTerritory


Fortify Financial Structure

0

100

200

Interest-bearing debt2014(Plan) 2014(Actual) 2015(Plan)

2015(Actual) 2016(Plan) 2016(Actual)

（Billion Yen）

20.0

25.0

30.0

35.0Shareholder’s equity ratio

2014(Plan) 2014(Actual) 2015(Plan)

2015(Actual) 2016(Plan) 2016(Actual)

（%）

2014 2015 2016 2014 2015 2016

◆Increase endurance to financial risk・Secure JPY 30 billion commitment line (Securing flexible and efficient

fund procurement )・Promote non-core assets sell-off（JPY 10 billion）・Procure JPY 20 billion by subordinated loan

Credit Rating

JCR BBB (Stable) BBB (Positive)

R&I BBB (Stable) BBB (Stable)


Enhance Corporate Governance

0

1

2

3

4

5

6

7

8

9

10

FY2011 FY2016

Mem

bers

Board composition

Internal・Men Outside・MenOutside・Women Outside・Non-Japanese

• Assess the effectiveness of Board of Directors meeting and comply all the 73 principles of corporate governance code

• Review of Board composition：→Appoint 3 independent outside directors(included woman and

non-Japanese)• Review guidelines of matters for resolution of the Board of Directors

→Stimulate discussion and enhance supervisory function

Mr. Chiaki Ito Ms. Kazuko Takamatsu Mr. Richard R. Lury

Enhance corporate governance by revitalize our Board of Directors meetings

Independent Outside Director


2. Hitz 2030 Vision


Direction of Businesses (1) Core Business Areas

Be Solution Provider to Create Recycling Society

Abnormal Weather,Natural Hazard

Social Challenges

Core Business Areas

Food, Water and Energy Shortage

Increasing Environmental

Pollution

WaterEnergy Energy from Waste(EfW) Renewable Energy Methanation Marine engines, process

equipment etc.

Desalination, Water Supply Sewage Treatment, Excreta Treatment Water Control(Hydraulic gates , Wave

Meters , Flap-Gates) Bridges・Shield tunneling machines etc.

Environment

Core Competences of Hitz Group

(1)Abundant delivery record(Expansive knowledge based on experience）

(2)Technological competences (Engineering＋Manufacturing)(3)Deep connections with customers


Main Power Supply

Offshore WindPower Generation

EfW

Anaerobic Digestion Biogas Power

Woody BiomassPower Generation

Garbage

Municipal Waste

Surplus Power

Methanation HydrogenGeneration System

Hydrogenrelated business

SOFC

HydrogenMethane

Hydrogen

Direction of Businesses (2ｰ1) Energy Business

Energy Business


Direction of Businesses (2ｰ2) Water-related Business

GPS Ocean Wave Meterand

Tsunami Meter

Discharge

Sewage Treatment

Drainage

Recycled Wastewater

Evaporation

Hydraulic Gate

Seawater

Water-related Business

Desalination

Water Supply

Daily Life Water

MovableFlap-Gate Type

Seawall


FY2016

29％

Net Sales

Shareholders’ Equity Ratio 40％

Overseas Net Sales to Net Sales

Operating Income

to Net sales

Business Image (1)Numerical Targets

“In FY2030, net sales will be JPY 1 trillion and operating income to net sales will be more than 10%”

33％ 50％

4%

10％

New Business

（by M&A）

Existing

Business400bn. JPY

600～700bn. JPY

300～400bn. JPY

ApproachesFY2030

New Products and Businesses

Globalization

Expansion of Value Chain


Globalization


Business Image (2) To Accomplish Our 2030 vision

Accomplish Our 2030 Vision

Increase profitability

Scale expansion

Scale expansion

Improve motivation of employee

Change in ways of working

Added value and

productivity improvement

Enhance Internal Resources and Environment

Business Deployment（Increase profitability and Scale expansion）

Be Solution Provider to create recycling society

(5) Diversity Management(4)Advanced Technology

(1) Expansion of Value Chain(2) New Products

New Businesses(3) Globalization


(1) Expansion of Value Chain

Engineering

Control Technology(Big Data, AI, IoT), Automation Technology, Advanced Simulation Technology

Manufacturing

Smile Curve

Earnin

g Po

we

r

Business Planning Service


Advanced Technology

Finance, Electric Power Selling, Concession

After-sales Service, Maintenance, Operation

Renewable Energy(EfW), Desalination,Water Treatment

Marine Diesel Engines,Process Equipment, System Machinery,

Electronic Control Systems, Industrial Machines, Steel Structures, Shield Tunneling Machines, Functional Materials


(2) New Businesses and Products

＜2030＞

▽Refuse derived fuel systems (Bioethanol)

＜2020＞＜2025＞

▽Industrial-use fuel battery (SOFC)

▽All-solid state lithium-ion batteries (Small-type)

▽Methanation (Demonstration)

▽Offshore Wind Power Generation (fixed-foundation turbines )

▽ Offshore Wind Power (Floating turbine)

▽Alkaline-type hydrogen production system (Demonstration)

▽SCR (Selective Catalytic Reduction) system for marine engines

▽Maintenance and repair work for infrastructure

▽Applications and service for satellite positioningsystem (Automatic operation)

▽New materials (Eucommia Elastomer)

▽ New materials (Carbon Nanotubes )

▽Desalination Plants (RO method, new type of water intake facilities）

▽Water treatment system for overseas

▽Drinking water supply by desalination plants(Concession businesses)

▽Rental service of wastewater treatment system

Expand menu for distributed energy

Develop distinctive equipment and service, and overseas deployment

Establish new core business

▽Alkaline-type hydrogen production system (Practical use)

Business areas New Businesses and Products

Energy Business

(Environment)

(Power Generation)

(Power Storage )

(New Energy)

Water Business

(DesalinationWater Supply)

(Sewage, Waste)

New Business

Schedule for launching new product and commercializing new business


(3) Globalization

Share our vision around the world Have diverse human resources , implement work-style reforms Adopt English as official Company Language Develop Global Human Resources at Hitz Academy

EU,ME,AFR IND, SE Asia, AUS CHN,TWN,KOR USA,MEX,SA

Provide recycling solutions to the world

Executive Officer Strategic Planning Governance




Hitz AcademyHitz(JapanHQ)

Europe HQ Asia Pacific HQ East Asia HQ Americas HQ

WaterEnergy Environment


(4)Advanced Technology

Engineering・EfW, Woody Biomass Power Generation,

Desalination, Water Treatment etc.

Manufacturing・Marine Diesel Engines, Process Equipment,

Precision Machinery, Infrastructure Development, etc.

Advanced Technology

■Control Technology(Big Data, AI, IoT)■Automation Technology■Advanced Simulation Technology

■Automation・Labor-saving ■Give the best performance

■Preventive maintenance

<Software >

< Hardware >

＜Added value and productivity improvement＞


Management Talent

Effective posting → High Performance

Work in Very Diverse Ways

Comfortable workplace → Maximize potential

(5) Diversity Management

●Recruit

→Recruitment of global staff and mid-career

●Personnel Allocation

→Timely staff deployment by visualization

of personnel information

●Development of HR

→Change of Corporate Culture by Human

Resource Enhancement

●ICT →Working style does not depend on time and location

→Convenience of global network

●AI and Robot →Decrease regular working hours by reform operations

●Work-Life Management →Create a comfortable working environment for all

employees

<To achieve the targeted HR>

Generate “staff motivation”

and lead to “high productivity”

Strong leadership

Capacity to change

the mindset

Strong will to

accomplish plan to the

end

Hitz Group is eagerto take on new

challenges


3. New Medium-Term Management Plan ”Change & Growth”


0.0

2.0

4.0

6.0

8.0

10.0

0

200

400

600

800

1,000

FY2013(Actual) FY2016(Actual) FY2019(Plan) FY2022 FY2025 FY2028 FY2030Target

Op

erat

ing

inco

me

to s

ale(

%)

Net

sal

es

(bn

. JP

Y)

Consolidated net sales Operating income to sale(%)

FY2013 Actual FY2016 Actual FY2019 Targets

Order intake 328.4bn. JPY 398.9bn. JPY 460bn. JPY

Net sales 333.4bn. JPY 399.3bn. JPY 430bn. JPY

Operating income7.8bn. JPY（2.4%）

14.9bn. JPY（3.7%）

20.5bn. JPY（4.8%）

ROE 3.7% 5.1% 7.7%

Number of employees 9,693 10,131 11,300

FY2030 Targets

Business Scale1 trillion JPY

More than 10%

Position of New Mid-Term Management Plan ” Change & Growth”

Guideline of business scale and profitability toward FY2030

■Basic strategies for New Mid-Term Management Plan ” Change & Growth”

The first step to grow for achieving 2030Vision (maintenance of business foundations)

1. To restructure business foundation and improve productivity

2. To maximize Hitz Group comprehensive strengths

3. Promote Portfolio Management


Numerical Forecast (Consolidated)

（ Unit: Billion Yen ）

Hitz VisionⅡ (Actual) Change & Growth (Plan)

FY2014 FY2015 FY2016 3 years total FY2017 FY2018 FY2019 3 years total

Order intake 452.7 435.4 398.9 1,287 400 430 460 1,290

N e t s a l e s 359.3 387 399.3 1,145.6 360 400 430 1,190

O p e r a t i n gi n c o m e( R a t i o )

12.8(3.6%)

15.1(3.9%)

14.9(3.7%)

42,8(3.8%)

12.5(3.5%)

16.5(4.1%)

20.5(4.8%)

49.5(4.2%)

O r d i n a r yi n c o m e（ R a t i o ）

7.5(2.1%)

12.2(3.2%)

11.2(2.8%)

30,9(2.7%)

10(2.8%)

14(3.5%)

18(4.2%)

42(3.5%)

N e t i n c o m e 5.1 5.8 5.8 16.7 6.5 8 10 24.5

I n t e r e s t -bearing debt

119 105.1 109.2 － 110 105 100 －

Shareholder ’se q u i t y ra t i o(incl. subordinated loan)

26.6% 28.4% 29.4% －30.0%(32.4%)

30.5%(32.7%)

31.0%(33.3%)

－

ＲＯＥ 4.9% 5.2% 5.1% － 5.5% 6.5% 7.7% －


Numerical Forecast (Environmental Systems & Industrial Plants)

0

5

10

15

20

0

100

200

300

400

FY2014Actual

FY2015Actual

FY2016Actual

FY2017Plan

FY2018Plan

FY2019Plan

Order Intake Net Sales Operating Income

Order Intake

Net Sales

Operating Income

(Billion Yen)

315 283.7 240.6 255 275 290

226 241.6 254.6 215 250 273

13.6 14.8 11.3 8.5 11 13.5


Numerical Forecast (Machinery)

-2

0

2

4

6

8

(50)

0

50

100

150

200

FY2014Actual

FY2015Actual

FY2016Actual

FY2017Plan

FY2018Plan

FY2019Plan


Order Intake

Net Sales

Operating Income

(Billion Yen)

100.6 107.2 106.9 100 105 115

104.4 104.5 103.7 100 105 110

0.8 -0.8 2.2 2.5 3.5 4.5


Numerical Forecast (Infrastructure)

-3

-2

0

2

3

5

(40)

(20)

0

20

40

60

FY2014Actual

FY2015Actual

FY2016Actual

FY2017Plan

FY2018Plan

FY2019Plan


Order Intake

Net Sales

Operating Income

(Billion Yen)

27.7 34.5 33.2 35 38 43

19.4 30.8 29.2 30 33 35

-2.1 0.4 1.0 1.0 1.5 2.0


Basic Strategies

Clarify position of each business by Portfolio

Priority given to growing business and new

business in resource allocation

Consider possibilities of revitalizing low-profit products

Basic Strategy(3)

Promote Portfolio Management

Business areas expansion

Use ICT

Reinforce the structure of risk management

Take specific measures to increase profitability

Strengthen financial condition and increaseinvestment capacity for growth

Basic Strategy(1)

Restructure business foundation and improve productivity

Form business clusters and maximize synergy

Promote consolidated basis profit monitoring

HRD by job rotation

Basic Strategy(2)

Maximize Hitz Group comprehensive strengths

1

2

3

4

５

1

2

3

1

2

3


Basic Strategies (1)Restructure Business Foundation and Improve Productivity

CategorySegmen

tsProducts Plan

BasicDesign

DesignProcurement

Manufacturing

AssemblyConstruction

AOM Operation Investment

Engin

eering

Enviro

nm

ental System

s &

Ind

ustrial P

lants

EfW (Domestic)

EfW (Overseas)

EfW (HZI)

Desalination

Water treatment

Power generator

Man

ufactu

ring

Mach

inery

Marine Engine

Press Machine(H&F)

Process Equipment

Nuclear Equipment (NAC)

Systematic Machinery

Infrastr

uctu

re

Steel Structure・Bridge

Shield Machines

その他

Wind Power

New Material

Current Range ： New and future Range ：

※Focus on expanding AOM business remote monitoring system and ICT(AOM)

(1) Business areas expansion


Basic Strategies (1) Restructure Business Foundation and Improve Productivity

(2) Use ICT

IoT・Big Data, utilize AIBusiness Areas Production Site Area

Remote Monitoring System・Support Center

Collect and Storedata

Analyze dataUtilize AI

Make works smartAchieve IoT innovation

in production site

Visualization

Automatic operation

Preventive maintenance

Lifetime diagnosis

Abnormal diagnosis

Support decision-making

Innovative Manufacturing&

Technology Research Center）

Ariake

MukaishimaSakai

InnoshimaMaizuru

IbarakiKashiwa

Marine diesel enginesSCR

Hydraulic gates

EfW

Water treatmentplants

Shield machine

Various dataVarious data

■Productivity improvement・ Productivity improvement by robots and ICT・ Standardized design by ICT

■Expansion of AOM business ・Horizontal development of remote monitoring system(Shield Machines, marine diesel engines etc.)・Stabilize electric output in EfW plants by big data

Technical Research Institute

Chikkou



（3）Reinforce the structure of risk management

■Risk assessment for M&A・Fully enforce guideline for PMI (Post Merger Integration)

OSMOFLO is under 100 days PMI master plan

■Risk assessment for order intakes・Diversified projects（New business, new products and investment operation)

Review system: Review risk assessment before receiving order Risk Portfolio : Set amount limit of risk

■Decrease Technical Problems・Reinforce structure of quality assurance:

Encourage closer cooperation and information sharing among Group companies, Quality Assurance Dept., Technology Development HQ and Corporate Planning Dept.（Risk Management Group and Project Management Group）, and enhance function of each HQ, Dept. and group.

・Management Approaches: (1) Design review meeting(2) Top Management Review(3) Risk review meeting



Categories

Segments

Products

Increase Profitability

Technology AdvantagesStrengthenSolutions

New ProductsStandardizationCost Reduction

Others

Engin

eerin

g

Enviro

nm

ental System

s &

Ind

ustrial P

lants

EfW (Domestic)Combustion controlPower generation

efficiency

Expansion of operation business

Analysis Big Data

EfW (Overseas)300t/D

StandardizationCooperation with HZI

Establish DBO projects

EfW (HZI)Combustion controlPower generation

efficiencyM&A

BiogasMethanation

Development of New markets(RUS,ME,AUS)

Desalination Intake Technology Cooperation with Osmoflo(RO)

Water Treatment Unitization Cost reduction Cooperation with Osmoflo

Energy MaintenanceFuel battery for industrial

useOverseas FIT projects

Man

ufactu

ring

Mach

inery

Marine Diesel Engine Increase base for A/SDF engines

SCR

Collective procurement,

Inventory control

Structure reformPrevention of trouble

Press machines (H&F)

World NetworkCRGF sheet forming,

Laser blanking

Process EquipmentPipework inspection

MaintenanceNew material Establish overseas sales network

Nuclear Fuel Cycling-Related Equipment

Concrete casks Reactor

decommissioningCooperation with NAC

Systematic Machinery

Drone

MaintenanceSatellite positioning system for revision

delivery

Electron beam sterilization

Standardize design・Reduce products line up

・Sophisticate electronic control device of Hitz Group products

Infrastru

ctu

re

Steel Structure・Bridge

Maintenance Flap-gatesStandardize

construction work Advance into Southeast Asian

Reduce products line up

Shield MachinesTechnologicaldifferentiation

Standardize design

(4)Take specific measures to increase profitability


Strengthen financial condition ⇒raise the rating

・Secure profit through executing Medium-Term Management Plan

・subordinated loan（Amount: 20 bn. JPY equity: 50%）

Increase investment capacity for growth

・Execute investment in core businesses for growth

・Withdrawal or sell non-core and troubled businesses by portfolio management


(5)Strengthen financial condition and increase investment capacity for growth

Realize to strengthen financial condition and increase investment capacity for growth

After included subordinated loan Amount of equity capital ：140 bn. JPY

Shareholder’s equity ratio：33％


Fortify group strategies：Form business clusters and maximize synergy

Focus on consolidated management : Promote consolidated basis profit monitoring

Basic Strategies (2)Maximize Hitz Group Comprehensive Strengths

Hitz

AKSOsmofloGroup

AMCSERACH

EM

Water Treatment

Hitz

NACOCL

Nuclear fuel cycling-related

equipment

Hitz

IHZNagaoka

Process Equipment

Hitz

Promotec ToyoTechnica

NTIKDC

Steel Structure

Hitz

NPCHM

MarineComponents

IMEX

Hitz

HZIGroup

SPC

IMEX

EfW

HESC

SNT

1

2

Hitz

VTEXSHINKO

SEIKI

TSK

PrecisionMachinery

Works of Hitz

IMEXH&F Manufacturing

VTEX


Position Action

Growth・Core Aggressive Investment (Development, capital investment, M&A）

Low ProfitabilityTake Quick Action

Find out if it can depart from low growth and low profit, promote selection and concentration（maintain business or withdrawal・sell）

New Businesses(Promotion Office)

Evaluate business viability and promote selection and concentration（Commercialization, withdrawal・sell）

Basic Strategies (3)Promote Portfolio Management

a. Basic Concept

More

Less

Re

sou

rces

Allo

cation

a. Growth

b. Core（Profit Increase)

c. Low Profitability

d. Take Quick Action

Our Business Levels (4 stages)

Aggressive Investment of Management

Resources (incl. M&A)

Draw up a scenario change to high profit,

review and take action

Withdrawal・Sell

Revitalization

Business ScaleProfit Growth


(Unit: Billion Yen)

Basic Strategies (3)Promote Portfolio Management

・R&D expenses: Focus on investing in themes to expand business areas and to increase profitability.

・Capital investment: (1) Focus on investing in themes to improve productivity

(Ex.：Automation by robots)

(2) Focus on investing in themes to expand business areas

(Commercialization of new products）

■Investment Principle

b. Investment Scale of Management Resources

Hitz VisionⅡ

3 years total

Change & Growth

3 years total

Plan Actual Plan

R&D expenses 30 19.6 30

Capital investment 30 28.0 40

M&A & others 40 20.6 30

Total 100 68.2 100


4. Support Documentation


Numerical Forecast (By Segments)

(Unit: Billion Yen)


FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

OrderIntake

Environmental Systems & Industrial Plants

315 283.7 240.6 255 275 290

Machinery 100.6 107.2 106.9 100 105 115

Infrastructure 27.7 34.5 33,2 35 38 43

Others 9.4 10 18.2 10 12 12

Total 452.7 435.4 398.9 400 430 460

Net Sales


226 241.6 254.6 215 250 273

Machinery 104.4 104.5 103.7 100 105 110

Infrastructure 19.4 30.8 29.2 30 33 35

Others 9.5 10.1 11.8 15 12 12

Total 359.3 387 399.3 360 400 430

Operating Income


13.6 14.8 11.3 8.5 11 13.5

Machinery 0.8 -0.8 2.2 2.5 3.5 4.5

Infrastructure -2.1 0.4 1 1 1.5 2

Others 0.5 0.7 0.4 0.5 0.5 0.5

Total 12.8 15.1 14.9 12.5 16.5 20.5


Numerical Forecast (By Small Segment of Environmental Systems & Industrial Plants)

(Unit: Billion Yen)


FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

OrderIntake

EPC 176.0 127.3 117 125 145 159

Stable Business

139.0 156.4 123.6 130 130 131

Total 315.0 283.7 240.6 255 275 290

Net Sales

EPC 116.2 122.6 130.0 94 120 132.5

Stable Business

109.8 119.0 124.6 121 130 140.5

Total 226.0 241.6 254.6 215 250 273

Operating Income

EPC 1.3 0.5 -4.9 -3.6 -2 -0.3

Stable Business

12.3 14.3 16.2 12.1 13 13.8

Total 13.6 14.8 11.3 8.5 11 13.5


Numerical Forecast (By Small Segment of Machinery)

(Unit: Billion Yen)


FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

OrderIntake

Marine Diesel Engine 23.3 35.4 20.8 17.5 18.5 23.0

Press Machine 23.2 22.9 23.6 20.0 21.5 22.0

Process Equipment 12.7 16.9 18.3 20.0 21.0 23.0

Systematic Machinery 29.7 17.1 28.7 27.0 28.0 29.0

Others 11.7 14.9 15.5 15.5 16.0 18.0

Total 100.6 107.2 106.9 100 105 115

Net Sales

Marine Diesel Engine 21.4 25.4 25.5 21.0 21.5 22.5

Press Machine 23.9 23.4 24.1 21.5 22.0 23.0

Process Equipment 22.0 16.0 16.4 17.0 19.0 20.5

Systematic Machinery 25.3 23.0 21.8 25.0 26.5 27.5

Others 11.8 16.7 15.9 15.5 16.0 16.5

Total 104.4 104.5 103.7 100 105 110

Operating Income

Marine Diesel Engine -3.5 -2.6 -0.4 0 0.2 0.4

Press Machine 2.8 2.7 2.3 1.4 1.8 2.3

Process Equipment 1.1 0.9 0 0.2 0.3 0.4

Systematic Machinery 0.4 -1.0 0.2 0.6 0.7 0.8

Others 0 -0.8 0.1 0.3 0.5 0.6

Total 0.8 -0.8 2.2 2.5 3.5 4.5

http://www.hitachizosen.co.jp/

Cautionary StatementForward-looking statements are based on information currently available to Hitachi Zosen Corporation. Therefore those forward-looking statements include unknown risks and uncertainties. Accordingly, you should note that the actual results could differ materially from those forward-looking statements. Risks and uncertainties that could influence the ultimate outcome include, but are not limited to, the economic conditions surrounding Hitachi Zosen Corporation and/or exchange rate fluctuation.

new medium-term management plan ”change & growth · 5/11/2017 · © 2017 hitachi zosen...

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