Yumikaki's questions to HITACHI (HTHIY) leadership • Q3 2024
Question
Yumikaki from Toyo Keizai sought clarification on the JPY 15 billion upside for GEM included in 'corporate items and eliminations' rather than the segment itself. They also asked for the specific objectives behind splitting the GEM segment into Energy and Mobility and reorganizing the Connective Industries (CI) business units.
Answer
Executive Tomomi Kato explained that including the potential upside in corporate items reflects the head office's view that the segment could outperform its own forecast, a practice adopted for clearer communication. He stated that GEM is being split because both the Power Grid and Railway businesses are now exceeding JPY 1 trillion in scale, requiring direct CEO oversight to increase management speed and strengthen risk management. The CI reorganization aims to simplify the structure into three BUs to accelerate growth and generate synergies.