Hitachi Plant Technologies Ltd, Japan

October 2006

Pump Industry Analyst

Hitachi Plant Technologies Ltd, Japan Profile Hitachi Plant Technologies Ltd was inaugurated on 1 April 2006 through the integration of Hitachi Plant Engineering & Construction Co Ltd, Hitachi Kiden Kogyo Ltd, Hitachi Industries Co Ltd and part of Hitachi Ltd’s Industrial Systems Group. The core businesses of the Hitachi Plant Technologies Group comprise Social Infrastructure & Industrial Machinery Systems, Mechatronics, Industrial Plant Systems, Air Conditioning Systems and Energy Systems. Social Infrastructure & Industrial Machinery Systems includes water treatment systems and equipment, large-size pumps, compressors, converters and hydroelectric power generation and transformer equipment installation.

COMMENT Looking towards fiscal 2007, Hitachi Plant Technologies Ltd is projecting an overall total order value of ¥369.0 billion, net sales of ¥330.0 billion and net income of ¥4.2 billion. Further forward, the Japanese company is aiming to post net sales of ¥400 billion and ordinary income of ¥20 billion by 2010. For Social Infrastructure & Industrial Machinery Systems’ pump business, which has some ambitious globalisation plans, establishing Hitachi Pump Manufacture (Wuxi) Co Ltd in China earlier this year is a key step on its overseas growth path. ■

Key Figures (¥ million) Hitachi Plant Technologies Ltd

Year ended 31.3 2006

2005

2004

2003

2002

Net Sales

218 212

199 014

189 454

221 311

247 647

Cost of Sales

195 067

178 484

–

–

–

Operating Profit

5371

3702

4265

4810

8009

Net Income

2753

2033

5131

2252

4221

R&D Expenses

1486

1589

1706

1884

2206

Capital Expenditures

1214

861

–

–

–

No of Employees

3406

3440

3514

3635

3788

Contact Details President & Chief Executive Officer: Address:

Masaharu Sumikawa 1-14 Uchikanda 1-chome Chiyoda-ku Tokyo 101-0047 Japan

Web: www.hitachi-pt.co.jp

Recent Events • In February 2006, Hitachi Pump Manufacture (Wuxi) Co Ltd was established in China. • The company has formulated a five-year medium-term management plan ending in 2010. The plan calls for developing top-share, one-and-only technologies, strengthening solution proposal capabilities, boosting overseas operations, expanding sales channels, integrating employees, bases and systems at early stages, enhancing procurement capabilities, and expanding in-house production.

5

COMPANY PROFILE

Analysis Social Infrastructure & Industrial Machinery Systems’ strategy is to take advantage of its ability to carry out integrated operations, ranging from planning, design and construction, to maintenance and management of water treatment systems and equipment, and industrial machinery such as pumps and compressors. In the public arena, the company will actively enter new markets, including the renovation of water treatment systems and equipment, the operation and maintenance of the water supply business and the private finance initiative system. For industrial machinery, the company is aiming to double after-sales services for pumps and compressors, while globalising the business. Outside Japan, they will expand sales of pumps and compressors for the petrochemical and gas sectors, and market large water pumping systems chiefly in China and the Middle East.