TOKYO, Jun 09 (Pulse News Wire) – Hitachi,ltd. (6501.T) released details for its CFO session at the upcoming Hitachi Investor Day 2026 scheduled for June 10 at 3 p.m.
The session will focus on strengthening core free cash flow through Lumada business expansion, balanced capital allocation, improving capital efficiency, and enhancing risk management. Key highlights from the CFO session include plans to expand sales and core FCF by focusing investments on digital technology, services, and talent development. The company targets a core FCF growth rate of 1.7% annually from fiscal year 2024 to 2026. Additionally, Hitachi aims to maintain a balance between growth investment and shareholder returns, prioritizing dividend payments and share repurchases based on core FCF and net income.
Regarding capital allocation, Hitachi will adhere to strict criteria for investment decisions, ensuring projects meet hurdle rates defined in its Inspire 2027 financial KPIs. The company also emphasized maintaining disciplined leverage ratios, targeting a debt-to-equity ratio of 0.5 times and a Net Debt/EBITDA multiple of 1 to 2 times. In the area of risk management, Hitachi outlined strategies to enhance return on invested capital (ROIC) and reduce weighted average cost of capital (WACC). Plans include expanding high-margin digital service businesses, increasing productivity through AI applications, and optimizing asset holdings to improve overall profitability and efficiency.
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