Yumikaki's questions to Hitachi Ltd (HTHIY) leadership • Q3 2024
Question
Yumikaki from Toyo Keizai requested clarification on the JPY 15 billion upside included in corporate items for the GEM segment. Additionally, they asked for the strategic objectives behind splitting the GEM segment into Energy and Mobility and reorganizing the Connective Industries (CI) business units.
Answer
Executive Tomomi Kato explained that the JPY 15 billion is a 'stretch' amount reflecting the head office's belief that GEM will outperform its own forecast. He stated that GEM is being split because both the power grid and railway businesses have grown to exceed JPY 1 trillion in scale, necessitating direct CEO oversight to increase management speed and strengthen risk management. The CI segment is being simplified into three BUs to accelerate growth, which has lagged GEM and DSS.