The following is a summary of the Hitachi, Ltd. (HTHIY) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Hitachi reported an FY '23 revenue growth of 12%, primarily from the Green Energy & Mobility and Digital Service & Systems sectors.

• Adjusted EBITA rose 20% year-on-year with a 10.1% EBITA margin improvement.

• Net income rose to JPY 589.8 billion, and core cash flow reached a record high of JPY 571.4 billion.

• For FY '24, Hitachi expects revenue and profit increases in three sectors and anticipates core cash flow to reach JPY 1.5 trillion.

• The company predicts a net income growth to JPY 600 billion in FY '24, with a projected core free cash flow of JPY 480 billion.

Business Progress:

• The Lumada business continues to grow due to solid orders, and tri-sector revenue is projected to grow 5% in H1 '24.

• Shareholder return is slated for an increase, with a total dividend of JPY 144.5 billion and an increased share buyback of JPY 100 billion.

• The Digital Systems & Services sector, especially GlobalLogic, is expected to grow by 15% in FY '24.

• Green Energy & Mobility sector revenue is expected to rise by 12% in FY '24.

• Hitachi remains ahead of its 5-7% per annum revenue growth target, now aimed at 10% per year.

• The company plans to invest JPY 1 trillion to seize new growth opportunities, balancing cash between shareholder returns and growth investments.

• Hitachi is transitioning toward digitalizing its social infrastructure businesses and preparing to invest in their servitization.

• The company is working to position Hitachi Vantara storage business as a generative AI data management base and partnering with NVIDIA for data management and IT x OT solutions.

• The company is strategically planning for a potential slowdown in China's real estate market by targeting low-risk customers and focusing on maintenance and renewals.

More details: Hitachi (ADR) IR

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