HOTS Confidential

Introduction of
Hitachi-Omron Terminal Solutions (HOTS), Corp.

Sep, 2018
Hitachi-Omron Terminal Solutions, Corp.
Global Business Group

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved.

Contents HOTS Confidential

1. Introduction to Hitachi
2. Organization of HOTS
3. Our Business
4. Cash Recycling Technology
5. LBNL- Why HOTS?

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 1

1. Introduction to Hitachi

Corporate Profile
Others
Smart Life & Ecofriendly Systems
2% Information &
Telecommunication
6%
Automotive Systems
10% 21%
JPY1,982 bn.
US$ 18 bn

Revenues
JPY9,162.2 bn
High Functional Materials
16% US$ 85 bn
& Components （FY2016） Social Infrastructure
& Industrial Systems
25%
8% 304,000 employees
68 countries
Construction Machinery
12% 94,000 patents

Electronics Systems & Equipment

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 2

2. Organization of HOTS

Corporate Profile
Company Hitachi-Omron Terminal Solutions, Corp. (HOTS)

Headquarters Tokyo and Aichi, Japan

Capital 8.5 Billion JPY (≈ US$78 Million)

(55% Hitachi, Ltd., 45% Omron Corp.)

Established October 1, 2004

Core Business Sales, marketing, development, engineering, manufacturing, and services

of ATM and other banking related equipment

Employees 1,014 (March, 2018)

Competitive edges ■ 40+ years of experience in manufacturing Cash Deposit Machine(CDM),

Cash Recycling Machine(CRM) and Passbook Printer(PEM).
■ Original banknote handling and validation technology proven in
50+ countries.
■ No.1 CDM/ CRM module supplier
across the world.

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 3

2. Organization of HOTS

Our Worldwide Presence

Hitachi Europe

OSC

Hitachi Payment Services Hitachi China

HOTS-IN

HOTS HQ, office, factory*

HOTS China
HOTS Korea
MDS

HTMP

● HOTS office (5)

HOTS-Indonesia
● Factory (4)
● Sales office
● Hitachi office*
HOTS-Thailand

Hitachi Asia

• Hitachi office is group company office related to sales of HOTS products.

• 7 sales office and 1 factory in Japan

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 4

2. Organization of HOTS

Corporate Structure As of Mar 2018

Representative Director, President Executive Operating Officer
Corporate Strategy Office Operating Officer
HR & Administration Div. Auditor Support Office
Finance & Accounting Div.
Quality Assurance Div.
Domestic Business Group (Japan)
Global Business
Global BusinessGroup
Group
HOTS-CN, IDN, TH, IN
Managed Services Promotion Div.
Whole Cash Solutions Div.
HOTS-KR Supplier to Magner
Hardware Development Centre
Software Development Centre
Manufacturing Strategy Centre
Global SCM Div.
Procurement Div.
Hitachi Terminal Mechatronics
HOTS-CN
HTMP
© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 5
3. HOTS Business

Core Technology
We are specialized in manufacturing full-function-ATM as the global leading
supplier of Cash Deposit and Recycling technologies

1. Proven banknote Sensing Technology supporting 80 currencies

2. Expert in banknote Handling Technology proven 1. Sensing Technology
in 80+ countries State-of-the-art sensors and
validation eliminates invisible
risks in self-service transactions.
- Secured note validation
- Serial number recognition
- Counterfeit note detection and
segregation

2. Handling Technology
Optimized banknote handling technology
enables trouble-less operation.

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 6

3. HOTS Business

Product Portfolio
Banking, Retail& CIT

Note counter Note sorter

Full-function ATM TCR Teller System

OEM Products Others

Ticketing & Reservation Terminals

Finger Vein Card Reader
Module Module
Cash module

Passbook Coin Module(JPY) Currency Exchange Terminal

Printer Module
© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 7
3. HOTS Business

Market Share (Worldwide Installation)

CRM & CDM (2015) CD & ADT(2015)

ADT: Automated Deposit Terminal
Nautilus Others
Hyosung 5% Triton
GRG
2% 2%
6%
Others
Wincor Yihua
12%
Nixdorf 3% NCR
7% 26%
GRG
HOTS 4%
38% OKI
Diebold 303K 5% 3,155K
8% units units
NCR HOTS
8% 6% Diebold
17%
Yihua
OKI Nautilus Wincor
12%
14% Hyosung Nixdorf
9% 16%

Source: Retail Banking Research(RBR),

“Deposit Automation and Recycling 2016” “Global ATM Market and Forecasts to 2021”

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 8

4. Cash Recycling ATM

Live-ATM Footprint (HOTS & partners)

China 300k units

Japan 80k units

India 17k units

Americas 10k units
EMEA 30k units

S-E Asia 30k units

Total 460,000 terminals worldwide

55,000 units annual shipment in FY2017

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 9

4. Cash Recycling ATM

Case Study (1)

Contribution to bank’s operation automation with

Cash Deposit Machine (CDM)

Objectives
Automation of three most popular transactions;
• Cash withdrawal
• Cash deposit
• Passbook update

Results (ROI)

-20% +50%
Over-the-counter CDM usage
transactions Compared to SNA

✔ Establishment of positive brand image of bank

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 10

4. Cash Recycling ATM

Case Study (2)

Contribution to reduction in operation costs

✔ 62% reduction of cash replenishment
✔ 30% saving of “idle money” (vs. CD) Cash Idle cash
replenishment
-62% -30%
Number or reconciliation

7 6.5
6
5 ✔ 60%+ reduction in
4 reconciliation by “CRM
3.0 cum sales deposit
3 2.0
2 machine.”
1
0
CD(ATM) CRM CRM& Sales
deposit
© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 11
5. LBNL- Why HOTS?

Because
1. We are one of the world’s first manufacturers of cash recycling
terminal with 30+ years of EXPERIENCE. The first cash recycling
machine was introduced in 1985.

2. HOTS is the world’s No. 1 supplier of cash recycling terminals &

modules. Our PROVEN technologies are running in more than 90
countries. Cumulative shipment exceeds 630,000 units worldwide.

3. Our products are IN-HOUSE MADE. Unlike N*R or Di***ld, we can

quickly make an enhancement whenever it is needed. Real-time
comprehensive support by HOTS is always available.

4. We are committed to QUALITY & R&D activities.

We believe operational reliability, security, and usability should come
all together.

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 12

End HOTS Confidential

© Hitachi-Omron Terminal Solutions, Corp. 2018. All rights reserved. 13

14