Sho Fukuhara's questions to Hitachi Ltd (HTHIY) leadership • Q3 2024
Question
Sho Fukuhara of Jefferies Securities asked if Hitachi Energy's large Q3 orders were one-off projects and inquired about its future growth potential and the profitability of its backlog. He also questioned the sustainability of the core free cash flow, given it was boosted by advances, and asked about the balance between shareholder returns and growth investments.
Answer
Executive Tomomi Kato clarified that while the Q3 orders included large grid integration projects, they are not considered one-off, and the company expects to continue to capture such deals. He noted the order backlog's profitability is steadily improving. Regarding cash flow, Kato acknowledged that advances are a timing benefit but expects new orders to cover future spending. He reiterated the capital policy of balancing growth investments and shareholder returns on a multi-year basis, rather than targeting a specific ratio in a single year.