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    ハラダ (Harada) • SMBC Nikko Securities

    ハラダ (Harada)'s questions to Hitachi Ltd (HTHIY) leadership

    ハラダ (Harada)'s questions to Hitachi Ltd (HTHIY) leadership • Q2 2025

    Question

    Harada of SMBC Nikko Securities asked what Hitachi Energy can do to improve margins and growth in the near term, and how past leadership experience at firms like thyssenkrupp could be applied to improve recurring revenue and digitalization.

    Answer

    Hitachi Energy CEO Andreas Schierenbeck explained that near-term profitability is impacted by working through older, lower-margin projects in the backlog, which will naturally improve as newer contracts are executed. He stated his plan is to leverage his experience in digitalization and IoT to enhance the service business and deliver customer value, while cautioning that transforming conservative utility customers is a long-term process.

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    ハラダ (Harada)'s questions to Hitachi Ltd (HTHIY) leadership • Q3 2024

    Question

    An analyst named Harada questioned the reasons for the bullish Q4 plan for several business areas, including Service & Platform, Railway Systems, and parts of the CI segment. He also asked if the strong order book for GEM's grid integration business increases the probability of reaching the upper end of the 10-12% adjusted EBITA margin target.

    Answer

    Executive Tomomi Kato explained the Q4 optimism was based on a recovery in GlobalLogic's U.S. business, the project pipeline for Railway Systems (now including GTS), and a recovery in semiconductor equipment investment benefiting Hitachi High-Tech. For GEM's margin, Kato noted that while the backlog's profitability is improving, there is a time lag before it impacts revenue. He reiterated that exceeding the 12% margin target would likely require significant growth in the digital services business, a topic for the next Mid-term Management Plan.

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