• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Management2013 Hitachi Construction Machinery
 

Management2013 Hitachi Construction Machinery

on

  • 1,153 views

 

Statistics

Views

Total Views
1,153
Views on SlideShare
1,153
Embed Views
0

Actions

Likes
0
Downloads
35
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Management2013 Hitachi Construction Machinery Management2013 Hitachi Construction Machinery Presentation Transcript

    • 1 New Mid-Term Management Plan “Go Together 2013 ” 【Period: 2011~2013】 Hitachi Construction Machinery Co., Ltd.Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved. Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • Index 2 1. Business and Market Environment 2. “Go Together 2013” 2-1. <2020 VISION> and 6 Imperatives 2-2. Hard (Product) Strategy 2-3. Mining Strategy 2-4. Solution (Sales& Service) Strategy 2-5. Regional Strategy 2-6. Enhancing Management base 3. Target PerformanceCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • Index 3 1. Business and Market Environment 2. “Go Together 2013” 2-1. <2020 VISION> and 6 Imperatives 2-2. Hard (Product) Strategy 2-3. Mining Strategy 2-4. Solution (Sales& Service) Strategy 2-5. Regional Strategy 2-6. Enhancing Management base 3. Target PerformanceCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 1. Business and Market Environment 4 Real GDP Growth Rate ‘11 ‘12 ‘13 10 8 World total 4.4% 4.5% 4.5% 6 Emerging Total 4 Advanced 2.4% 2.6% 2.5% 2 Emerging 6.5% 6.5% 6.5% 0 -2 Advanced 500 -4 Dear GDP (FY 2000=100) 00 01 02 03 04 05 06 07 08 09 10 11 12 13 China 450 World economy is in steady Recovery Scale of economy for China and India is 400 Emerging countries are enlarging expected to grow by more than 200%, and 350 for Sub-Sahara, M. East, Russia, by 150% approximately. India Demand is correlated with GDP 300 250 Sub-Sahara M. East 200 Russia Brazil GDP Growth 150 Advanced Demand Construction Machinery -1% -40% 100 9 0 9 3 9 6 9 9 0 2 0 5 0 8 00 02 04 06 08 10 12 14 16 IMF World Economic Outlook (Apr.2011)Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 1. Business and Market Environment 5 1000Units 千台 375 Demand Growth Rate Market will increase in double digits. 10 11 350 Emerging Countries in main, Japan +39% +26% 325 covering 80%. W. Europe +61% +8% N. America +35% +40% 300 Worldwide Demand China +53% +15% 275 Hyd Excavator 263 Asia/Oceanina +32% +11% *HCM Estimate Others +95% +6% Total +52% +15% 229 Total 250 *Excluding Chinese Maker 30 221 225 29 Others Composition 42 200 36 179 Asia/ Others Japan 38 Oceania W. Europe 175 162 155 25 29 151 Asia/ 5% Oceania 12% 8% 150 133 18 21 32 N. America 15 12% 7% 123 47 10% 8% 125 13 17 128 6% 29 14% 97 7 13 17 24 29 23 China 16% 11% 11% 111 7% 100 87 16 24 17% 2010 6% 6 5 10 32 30 44 R 7 32 75 27 73 2011 F 11 21 Emerging 14 15 19 52 17 N. America 79% 49% 50 42 18 36 37 13 2013 F 28 27 29 W. Europe 48% 26 10 24 26 25 22 18 23 26 28 31 33 20 15 Japan 53% 10 14 18 China R: Result 0 F: Forecast 01 02 03 04 05 06 07 08 09 10 11 12 13Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • Index 6 1. Business and Market Environment 2. “Go Together 2013” 2-1. <2020 VISION> and 6 Imperatives 2-2. Hard (Product) Strategy 2-3. Mining Strategy 2-4. Solution (Sales& Service) Strategy 2-5. Regional Strategy 2-6. Enhancing Management base 3. Target PerformanceCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-1. <2020 VISION> & 6 Imperatives 7 New Mid-Term 1st Step for the Management Plan Go Together 2013 coming 10 years Close and Reliable Partner anywhere on 2020 the Earth with Best Solutions through VISION Kenkijin Spirit p Sales/ Operating Income (100 Mil Yen) Ste 9,405 1800 3 rd 9,000 Sales (Bar) Operating Income (Line) 7,738 1,085 7,442 ep 1300 6,058 nd St 488 650 2 800 415 r 197 1 step fo le Growth st b S ustaina 300 Kenkijin Spirit 】 【201 1 -2 0 1 3 Guiding Principles of HCM Group -200 07 08 09 10 11 12 13 ’20Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-1. <2020 VISION> & 6 Imperatives 8 Transform to Global Management towards Sustainable Growth Life Cycle Support Customer satisfaction Solution Hard (Product) Regions Africa/M. East India Research & Development Asia/ Oceania China Marketing & Sales Europe/ Russia Mining Operation America Japan Global Management basis Global Production Global ManagementCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-2. Hard (Product) Strategy 9 Establish Global R & D Made by HITACHI Basic Policy 1. Development for each HCMC (China) market needs 1. Development on local 2. Unified Quality requirement in China. 3. Standardize, Integrate 2. Cost Reduction by further localization Share Japan function 1. Control all products cross sectional 2. Develop advanced technology Telcon (India) (Saving energy technology) 1. Develop specification for 3. Utilize Human Resources Emerging Market with (China, India) better cost performance 4. Collaboration and alliance with HITACHI Group and suppliers 2. Outsource Computer 5. Standardize, Integrate analysis functionCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-2. Hard (Product) Strategy 10 Develop Machine & Spare Parts for Emerging Market with overwhelming cost competitiveness • Environment-Friendly • Larger Production, Lower fuel consumption + • Used Machine Distribution • Simplified function Well accepted • Easy Maintenance Develop a New Brand Service Parts 3G Series • Easy obtainable parts with high price competitiveness●Mini Excavator More Durable models for China Market Undercarriage, Tooth etc Price Quality ●Wheel Loader: Develop Emerging Spec Model Series together with KCM Delivery WarrantyCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-2. Hard (Product) Strategy 11 Establish Technology for Electric and Robot Utilize Strength of Total HITACHI Group Inverter Motor Energy Management Hitachi IES Hitachi IES/Hitachi Ltd Hitachi Institute Battery operated Hybrid ASTACO Excavator Excavator (Advanced System with Twin Arm for Complex Operation) AHM Safety Improve Operation Asset Health Efficiency Management Information Fault detection Overview Monitor Traffic Control Cruise Control 歩行者 車両 障害物 Lower fuel consumption + Improve Safety and Improve Value for Energy saving Operation efficiency for CustomerCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-3. Mining Strategy 12 * Demand: HCM Estimate Strong in Mining. Establish Solid Business Model Demand Excavator (>100ton) Demand RDT (>140ton) Unit Unit : vs2010 : vs 2010 2.2 1.9 1.7 1,600 1,600 1,400 1,400 1,200 1.5 1,200 1,000 1,000 2.2 800 800 600 1.6 600 4.9 400 需 販 400 3.0 200 要 売 200 0 0 10 11 12 13 18 10 11 12 13 18 • Apply Success Story of Excavator (Reliability) to RDT • Sophisticate Most Advanced technology of Hitachi Group (AC Drive, Trolley, AHM etc) ・Develop Excavator & RDT upon common Open Mining School (Australia) concept in Japan 【ICT: Information ・Deploy Own Service utilizing ICT Communication Technology ・Fulfill Service Infrastructure (HR, Re-Man)Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-3. Mining Strategy 13 Integrated Control & Package of 1 Excavator Maintenance through ICT with 4 Dump Trucks 【ICT: Information Communication technology 】 Central Control of Information + for all Machines at site Dump Area Loading Area Troubleshooting Tool Overwhelming Product Fleet Management System Full Maintenance Contract (FMC) Re-man Parts Win-Win Customer Service Enlarge revenue of Achieve High Performance Service and Parts and Low Life Cycle Cost New Unit Realize Lowest Cost/TonnageCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-4. Solution (Sales & Service ) Strategy 14 Boost up Customer satisfaction and realizeLocation Repair History higher market share. Warning Parts Book (Acquire repeat orders) Condition Parts Bulletin Utilize Global e-Service Used Resale Location Customer Satisfaction Warning Enlarge Revenue Re-man Condition Parts Rental After Sales Service Finance New Unit Parts Book Life Cycle Support Operation Evolve support based on the ICT fully utilized data.Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-5. Regional Strategy 15 Enhance Sales & Service Operation for regional market requirement 【Demand Hyd. Excavator:’10→’13】 Europe/Russia China Europe Japan America Russia /CIS North India Asia/ Oceania Middle & South Africa/ M. East Africa M. East Localize Operation, Faster decision, Enhance Strategic functionCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-5. Regional Strategy - India - 16 Strengthen Dealer Sales & Service Network of Telcon 【 】:vs 10 ’10 ’13 36 36 【1.8】 Dealer (226 outlets) (400 outlets) Own Service 【2.4】 Workshop 5 factories 12 factories Large Projects in India 【Airport Maintenance】 Build facilities 1100 Bil Yen (up to ’13) 【Seaport Maintenance】 Major Seaports 1200 Bil Yen (up to 14) 【Commercial artery Delhi and Mumbai 】 Freight Railway and Industrial Park, Inland Depot to Seaports 8300 Bil Yen (up to 16) Increase Production Capacity Production 【2.6】 unit (3 factories) ●Role of Telcon 15,000 Backhoe Loader 10,000 ●Develop Product for Emerging Market 5,000 Hyd. Excavator for Africa, M. East 0 10 13Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-5. Regional Strategy – Europe/ Russia - 17 Name : Hitachi Construction Machinery Eurasia Industry Policy Manufacturing LLC (HCRM) In Russia Competition Location: Tver, Russia Established : 1st April 2011 (Established in Mar 2010) Production: Hyd excavator 2,000units/Yr Start Operation: October 2013 Joint Marketing HCRS+Dealer St Petersburg ゙ Tver Build Substantial Russian Operation Moscow 1. Competition (Cost, Delivery, Market oriented) 2. Enlarge local procurement (Develop suppliers, Supply items to Europe) 3. Enhance Mining Business Local production of Bucket, Vessel for Dump) 4. Avoid Import Duty Risk Image 現地生産工場 完成イメージ ロシア HCMR FactoryCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-5. Regional Strategy – Africa/ M. East - 18 HMEC enhance Dealer Support in M. East, E. Africa HCAF enhance Sales & Service Network Country Demand of Hyd Excavator •Expand Presence >100 units/Yr Tunisia •Promote Wheel Loaders Morocco HMEC Algeria Libya Egypt HCAF Emerging Spec Nigeria Sudan India Models Ghana Office Promote in Full line Working at Mozambique/Angola Find/Develop Dealer Angola HCAF Maintain Support Organization Mozambique Mining Order S. Africa HCAF Head Office Taking Demining Machine BM307-V33Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-5. Regional Strategy – Asia/ Oceania - 19 Strengthen Home Market (Retail Sales and Service) Secure Presence in Biggest Market HCMT Outlet Mining Project HCMM HMAP HAP 1. Enlarge Service Revenue HCMI factory Enhance support for Customer Utilizing Global e-Service 2. Participate in Big Projects HCA (Coal, Forestry, Infrastructure) 150%Palm Oil Plantation Parts/Service Sales CPL Used etc Service PartsHighway Project Forestry Coal 10 11 12 13Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-5. Regional Strategy – China - 20 Enhance Dealer Network ( by Market size, Growth Ratio) Large and Rapid Analyze per product Basic Strategy Small but Rapid Bring strategic model Price Management Large but Slow Inner Mongolia Strategy by Focus on Specific Province Shenyang Province Prioritized machine supply Beijing Enhance Dealer Support Establish HCS Branch office Hefei Chengdu Support Control Support Dealers through Score Card Nanning Performance Expand to other area Introduce Dealer Training Support System Training through e-LearningCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-5. Regional Strategy – America - 21 Alliance to be Deepened, Enhanced and Developed Sales started in North American Market for new Engine emission models Increase production at Deere-Hitachi Zaxis-5 Promote JD Products in Asia Sales range expansion and synergy expected for Excavator Sales Increase sales volume per dealer Backhoe Loader Motor Grader Forestry Machine DozerCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-5. Regional Strategy – Japan - 22 Rental Sales Service Satisfy customer needs of “Rent”, “Buy” and “Repair” 1st April 2012 Start HCM Japan Start as an comprehensive company who can respond to any requirement in any place in Japan. Reform structure to further strengthen Japanese market that is significant. Promote All-in-One Japan : Rapid change in volume Sales Decreased Sales to End Sales Decreasing Construction User Investment Low hour, Long term 20% Service Rental Tier 4 emission Decrease Sales to Rental Company Sales to wrapped user is 5 times. Total customers : 31,000 Target is to increase ratio to 20%Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-6. Enhance Management Base –Production - 23 Accelerate Growth by aggressive Production Capacity ExpansionProduction Capacity Medium Production CapacityExcavator 170% (2010 to 13) Mining (2010 to 13) China Ultra Large Excavator (100tup) Europe Russia 180% 【160%】 Japan USA 140% 160% 170% Rigid Dump (140tup) 180% 170% India Indonesia 【300%】 HCMC (China) (17 30 K units at End FY2011) Investment Increase Capacity for Components (42 60 K Units E/FY2011) Increase Production for Ultra Large Excavator, Rigid Dump TruckCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-6. Enhance Management Base –Total Cost Reduction 24 - Aim No.1 Cost Competitiveness, Reduction of Total Cost thoroughly 1. Enhance Purchase & Procurement New Partnership Strategy HCM Supplier Promote Cost Reduction activity by Top Down 2. Reduce SG&A Strategic Periodical Review Partner Project activity of Promoting reduction of Indirect cost of Preferred Supplier Hitachi Group 3. Enlarge Local Procurement •Approved Supplier Shorten lead time Reduce cost Introduce Score card of Supplier Secure Volume Introduce Score card of Supplier 4. Reduce Logistic Cost & Loss Cost Procurement to Secure Procurement to Secure Strengthen Supply Chain Volume required Volume requiredCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-6. Enhance Management Base –Human Resource - 25 HR Policy and Foster HR based on Global Operation - Foster and Strengthen Kenkijin - (Share Value) ◆ HR Policy Promote Localization of staffs ◆ Foster HR Foster TOP Management <Training for Overseas TOP Management> through Global Core Human Share Kenkijin Spirit Resource Program ◆ Promote Diversity Foster and Utilize diversified Resources S. Africa Malaysia China AustraliaCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 2-6. Enhance Management Base – Investment - 26 Amount of Investment (Accumulated from2011 to 13) (Excluding Lease Property) IT and others Production Facility Components for Excavator (Increase capacity) Sales & Service (Outlets etc) 187 Bil. Yen Overseas Group for Production facility Production Facility Mining Machines (Including Components) (Increase capacity)Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • Index 27 1. Business and Market Environment 2. “Go Together 2013” 2-1. <2020 VISION> and 6 Imperatives 2-2. Hard (Product) Strategy 2-3. Mining Strategy 2-4. Solution (Sales& Service) Strategy 2-5. Regional Strategy 2-6. Enhancing Management base 3. Target PerformanceCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 3. Target Performance 28 New Mid-Term 1st Step for the Management Plan Go Together 2013 coming 10 years Close and Reliable Partner anywhere on 2020 the Earth with Best Solutions through VISION Kenkijin Spirit Sales/ Operating Income Ratio (100 Mil Yen, %) Management Index Over 50 Profitability Efficiency Soundness Sales (Bar) Operating Income (Line) 11,000 Operating 9,000 40 Income ROE Net D/E Ratio Payout Ratio 7,738 30 FY2010 5.4% 3.6% 0.9 38.1% Over 10%20 Over Below Over 20% 10 FY2013 Over 15% 0.8 Stable 10% 7.2 Dividend 5.4 0 10 11 12 13 Exchange rate: 80¥/$, 115¥/EuroCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • Exert Kenkijin Spirit, and give first priority to customer satisfaction. 29 Go Together 2013 Poster The slogan “Go Together” is aimed at encouraging efforts in combining the strengths of all employees of the HCM Group as we work to realize the 2020 Vision. Let’s take on the challenge of global competition, with all HCM Group employees sharing Kenkijin Spirit and with the concept of “Global One” under which everyone has a sense of solidarity. HCM Group Attitude of Kenkijin (Value and Guiding Principle) Ideas underpin Kenkijin Spirit Challenge (Spirit of Challenge) Customer (Individual customer orientation) Communication (Open atmosphere)Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • 30 EndCopyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.
    • Cautionary Statement 31 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 document. 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, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors; ■exchange rate fluctuations of the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro; ■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 in Japan, declines in which may require Hitachi to write down equity securities that it holds; ■the potential for significant losses on Hitachi’s investments in equity method affiliates; ■increased commoditization of products; ■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; ■rapid technological innovation; ■the possibility of cost fluctuations during the lifetime of, or cancellation of, long-term contracts for which Hitachi uses the percentage-of-completion method to recognize revenue from sales; ■fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins or shortages of materials, parts and components; ■fluctuations in product demand and industry capacity; ■uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials or shortages of materials, parts and components; ■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 restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures; ■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 the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products; ■uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies; ■uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties; ■the possibility of incurring expenses resulting from any defects in products or services of Hitachi; ■the possibility of disruption of Hitachi’s operations in Japan by earthquakes, tsunamis or other natural disasters, including the possibility of continuing adverse effects on Hitachi’s operations as a result of the earthquake and tsunami that struck northeastern Japan on March 11, 2011; ■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 the accuracy of key assumptions Hitachi uses to evaluate its significant employee benefit related costs; and ■uncertainty as to Hitachi’s ability to attract and retain skilled personnel. The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.Copyright © Hitachi Construction Machinery Co., Ltd. 2011 All Rights Reserved.