Oka-san's questions to Hitachi Ltd (HTHIY) leadership • Q3 2024
Question
An analyst identified as Oka-san asked for more details on the drivers of profitability improvement in the Connective Industries (CI) segment. They also requested a breakdown of the JPY 36 billion upward revision in adjusted EBITA and inquired about the company's strategy for the underperforming storage business.
Answer
Executive Tomomi Kato attributed CI's steady profitability growth to a focus on risk management, cost competitiveness, and passing on inflationary pressures through pricing. Executive Hiroaki Ono clarified the EBITA revision included the JPY 15 billion from GEM, further cost evaluations at headquarters, and the removal of a previously forecasted risk buffer. Regarding storage, Kato acknowledged the challenging competitive environment but expects improvement from Q4 onward through procurement reviews, price changes, and the expansion of AI-related solutions like Hitachi iQ.