Hitachi Construction Machinery Mining Business Update Construction Machinery Mining Business Update...

download Hitachi Construction Machinery Mining Business Update Construction Machinery Mining Business Update ... Market Outlook on Mining Equipment ... trolley truck started test-run in March

of 15

  • date post

    11-Apr-2018
  • Category

    Documents

  • view

    216
  • download

    3

Embed Size (px)

Transcript of Hitachi Construction Machinery Mining Business Update Construction Machinery Mining Business Update...

  • 1 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    Hitachi Construction MachineryHitachi Construction Machinery

    Mining Business UpdateMining Business Update

    Mitsuhiro TABEI, Vice President and Executive Officer

  • 2 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    Sales Outlook (Shovel/Truck/Parts/Service)

    0

    20

    40

    60

    80

    100

    120

    140

    160

    180

    200

    Parts & Service

    RFT

    Shovel

    12E1122EE

    Billion Yen

    125

    150

    207

    69

    56

    82

    68

    137

    70

    Mining Operation Sales Outlook (consolidated basis)

    75/$ 100/ FY12 1Q78/$

    100/ FY12 2Q4Q

    111111101100

    Expect

    ed to

    grow b

    y 38%

  • 3 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    0

    100

    200

    300

    400

    500

    600

    FY2010 FY2018(E)

    Parts

    Mining

    EX

    RFT

    Mining Sales & Profit

    18 consolidated basis

    With Hitachi hi-tech truck,

    we plan to expand

    our sales worldwide

    Mining market is dominated by 4 major players

    Long Term Plan (consolidated basis)

    4 timesBillion Yen

    4 Major playersLIEBHERR KOMATSU

    CAT

  • 4 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    Thermal coal price Price of Thermal Coal

    Price of thermal coal seems to hit the

    bottom. It is still weak but there is a sign of

    rebound.

    Estimated cost of production by Australian

    suppliers is approx. US$70-80 which is

    squeezing their profit whereas the cost of

    Colombian and S. African coal is around

    US$50 which brings them reasonable profit.

    Production cost of thermal coal by major suppliers

    Outlook

    Recent mass investments in suppliers made

    the supply shortage situation to a balanced

    situation. The balance may gradually start to

    rebound to a shortage of supply in 2H 2013.

    China has increased their purchase of coal by

    9% on month to month basis due to coming

    high winter season demand for energy.

    Germany has emerged for burning coal due to

    power price increase.

    SourceWorld Bank

    FOB

    New Castle, Australia

    Price & Outlook on Thermal Coal

    07/8 08/8 09/8 10/8 11/8 12/8

    Source: Daiwa Securities, estimate by Daiwa Securities

    Peabody Energy (AU)

    Xstrata (AU)

    BHP Hunter Valley (AU)

    Anglo American Coal (SA)

    Xstrata Colombia

  • 5 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    0

    200

    400

    600

    800

    1,000

    '08 '09 '10 '11 '12E '13E '14E

    Others

    India

    China

    EU 15

    Taiwan

    S.Korea

    Japan

    Increases in inventory may ease after Q2 2013The impact of shale gas made US suppliers to export and extensive

    investments by global players also brought excess in supplies. A slow

    down in Chinese economy eased the balance in demand & supply

    in 12.

    However, Australian coal still has power to determine the coal price due

    to its quality. Current price of US$90 is considered as bottom as their

    production cost is in a range of US$70-80.

    Chinese economy on the other hand seems to seek for a soft landing

    but looking at the seriousness of electricity supply, coal demand would

    naturally increase gradually

    from Q2 2013

    SourceTEX

    reportAME

    forecast by Daiwa Security

    Thermal coal importsseaborne coalActual Forecast

    2.5%5.0

    % growth

    Thermal Coal OutlookM. ton

  • 6 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    0

    100

    200

    300

    400

    '08 '09 '10 '11 '12E '13E '14E

    Others

    EU15

    Ch ina

    Ta iwan

    Brazi l

    I ndia

    Korea

    Japan

    0

    200

    400

    600

    800

    1, 000

    1, 200

    1, 400

    1, 600

    1, 800

    '08 '09 '10 '11 '12E '13E '14E

    Others

    S.Korea

    Brazi l

    USA

    EU 27

    Japan

    India

    Ch ina

    Coking Coal Outlook

    Price of coking coal

    Worldwide crude steel production

    Actual Forecast

    3.1%3.7

    % growth

    Coking coal imports(seaborne

    coal)

    Actual Forecast

    2.4%4.7

    % growth

    SourceTEX

    report, AME

    forecast by Daiwa Security

    M. tonM.ton

    Outlook on coking coal

    Expected to grow by 2.4% to 4.7% annually

    Expected to grow by 3.1% to 3.7%

    annually

    Current trend is same as thermal coal and

    expected to rebound after 2Q 2013

    SourceTEX

    report, AME

    forecast by Daiwa Security

    Source: AME, McCloskey estimate by Daiwa Securities

    Premium Hard Coking Coal Price

    Spot rate (FOB Australia)

    Contract rate (FOB)

  • 7 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    0

    300

    600

    900

    1,200

    1,500

    1,800

    '08 '09 '10 '11 '12(Rev) '13(F) '14(F) '15(F)

    Market Outlook on Mining Equipment

    Units

    0

    300

    600

    900

    1,200

    1,500

    1,800

    2,100

    2,400

    '08 '09 '10 '11 '12(Rev) '13(F) '14(F) '15(F)

    Demand of Excavators

    machine weight 120t

    and above

    Demand of Rigid Frame Truck

    Payload 150t

    and aboveUnits

    Demand level of 11 through 13 seems to be almost same. Recovery willstart to take place after 13/2H to 14/1H, similar to excavator.

    12 demand may result in small increase over 11 due to 1H gain. Recoverywill start to take place after 13/2H to 14/1H

  • 8 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    A Paradigm Shift in Major Mining Houses

    BHP B

    (Australia)

    VALE

    (Brazil)

    Rio Tinto

    (Australia)

    Anglo American

    (England)

    XSTRATA

    (Switzerland)

    Major Accounts

    KPC (Indonesia)ADARO (Indonesia)BUMA (Indonesia)PAMA (Indonesia)Adani

    (Australia)

    Coal India (India)Shenhua

    (China)SUEK (Russia)Banpu

    (Thailand)

    Local Heroes

    THIESS

    (Indonesia/Australia)

    LEIGHTON

    (Australia)

    PAMA

    (Indonesia)

    Contractors

    Regio

    n C

    ove

    rage

    Commodity Focus

    Monopoly by

    Major Accounts

    2001 2011

  • 9 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    EX2600-6/5600-6Feb.2012 on SaleIncreased Bkt

    Capacity, Enhanced Engine and pump

    EH5000AC-3

    Sep 2012 Display@MinexpoProto type

    Hitachi AC Drive,

    3rd

    Generation Hitachi Drive System

    Electric Shovels

    Line-up of EX-6 Electric ModelsEX26008000-6E2012

    Full Line-upEX1900-6E2013 end

    RFTTrolley Trucks

    EH3500ACII

    TrolleyStarted Operation Mar

    2012

    EX8000 BH type

    EX8000-6 Line-up of BH front 2012 end

    EH3500ACII190

    Aug.08 on Sale

    Line-up of Hitachi AC Drive TrucksNew products

    Introduction of New Products/TechnologiesDifferentiation

    EH4000ACII240

    Nov.10 on Sale

    EH5000AC-3290

    Jun12 EXW

    Evolution to AC-3 Models

    FY12 FY13

    EX1900-6E

    EX2600-6E EXW

    EX3600-6E On Sale

    EX5600-6E

    EX8000-6E

    Line-up of Electric Shovels

    EH3500ACII Trolley Truck started operation in FQM, Zambia

    *First Hitachi Trolley Truck24 units ordered

  • 10 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    New Products / New TechnologyNew Products / New Technology

    Mining Trucks

    Trolley Assist New Hitachi Drive Control System

    SkyAngle

    (viewing monitor)

    Autonomous Trucks

    Remote Control

    Autonomous Excavators

    Introduction of New Products/Technologies

  • 11 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    TROLLEY ASSIST PROGRAM

    First EH3500ACII

    trolley truck started test-run in March

    2012

    in Zambia, and released in July 2012

    Trolley Assist Operation Video

  • 12 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    SkyAngle

    (viewing monitor)

    Jointly developed by HCM & Clarion Co. Ltd.in Hitachi group

    Monitoring system to support and enhance operator safety checks surrounding machinery

    Released in October 2012 on dump trucks

    as

    an optional,

    and plans to release on ultra large

    hydraulic excavators

    on 2013

    4 x Camera Mounting Positions

    21

    3 4

  • 13 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    Camera Monitor

    Screen Changeover

    Switch.

    Five

    viewing angles

    on Neutral

    or

    Forward,

    and Four viewing angles

    on Reverse are selectable

    by the

    Screen Changeover Switch.

    SkyAngle

    (viewing monitor)

  • 14 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    Autonomous Dump Truck System Overview

    Autonomous Haulage ProjectTechnology transfer to manned trucks for enhancement in;

    -

    Safety, Efficiency, Productivity

    Field test from 2013

    Fully Autonomous Operation by 2017

    Using latest technology for pragmatic and efficient development

    Synergy among Hitachi Group Companies

  • 15 Hitachi Construction Machinery Co., Ltd. 2012. All rights reserved.

    The EndHitachi Construction Machinery Co., Ltd.Mining Operations Group

    1 2Long Term Plan (consolidated ba