Yumikaki-san's questions to Hitachi Ltd (HTHIY) leadership • Q3 2024
Question
Yumikaki from Toyo Keizai sought clarification on why the JPY 15 billion expected upside from the GEM segment was included in 'corporate items and eliminations' rather than the segment's forecast. They also asked for the objectives behind splitting GEM into Energy and Mobility and reorganizing the Connective Industries (CI) business units.
Answer
Executive Tomomi Kato explained that including potential upside in corporate items is a new forecasting approach to provide a more transparent outlook when the head office's view is more optimistic than the segment's plan. He stated that GEM was split due to the substantial growth and complexity of the power grid and railway businesses, which now exceed JPY 1 trillion each, to increase management speed and strengthen risk management. The CI reorganization aims to simplify the structure and accelerate growth by generating synergies between BUs.