Panasonic Holdings Corporation · TSE:6752
Panasonic — FY2016 Earnings Presentation
22 slides from Panasonic's earnings presentation, Mar 31, 2016
Slide 1: FY17 business policy
This presentation contains FY17 (ending March 31, 2017) business policy. Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Slide 2: FY16 (ending March 31, 2016)
FY16 (ending March 31, 2016). Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Slide 3: Mid-term plan achieved early; focus on sales expansion in FY16
We achieved our mid‐term plan one year ahead of schedule in FY15 and shifted our focus to generate profit by sales expansion in FY16 to achieve sustainable growth. We expected six large‐scale BDs (Business Divisions) to lead corporate‐wide growth in sales and profit and proceeded investment in g
Slide 4: Downward revision of sales and OP as of February 2016
We however ended with downward revision of sales and OP as of February 3, 2016. Six large‐scale BDs failed to lead corporate‐wide growth, so did most of other BDs, failing to meet their sales targets. Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Slide 5: FY16 OP analysis
FY16 OP analysis. We improved OP by fixed cost reduction and restructuring done in the past two years and expected sales expansion in FY16 to achieve higher profitability. We were however unable to expand sales to lead profit improvement. Meantime, OP is expected to increase from the previou
Slide 6: FY2016 summary
FY2016 summary. 1) We were unable to respond properly to macro environment changes such as Chinese economy, stagnant ICT (information communication technology) demand, etc. We need to revisit our macro forecast and our competitiveness, and take measures as needed. 2) We steadily improved manag
Slide 7: Mid-term strategy
Mid‐term strategy. Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Slide 8: Mid-term strategy based on basic management philosophy
We always work for our mid‐term strategy based on our basic management philosophy. ‘Panasonic continues to contribute to its customers’ – this is our identity with our slogan of ‘A Better Life, A Better World.’ Profit shows how much we contribute to customers and it is a return of our contribu
Slide 9: Five business areas and three regions reorganized
We progressed with our ‘five business areas and three regions’ to increase profit and we here reorganize this structure as follows. For Consumer Electronics, Housing and Automotive business areas, we will deliver our value widely to end customers to create new growing business areas. We have tak
Slide 10: Mid-term target by business area
We reorganize our mid‐term target by business area. For Consumer Electronics, Housing and Automotive business areas, we target at more than 5% of OPM and more than 300 bil. yen of OP. For B2B business area excluding Housing and Automotive, where we work for customers to provide our value, we t
Slide 11: Growth strategy in three business categories
Since we have been working based on Business Divisions, it is essential for us to execute strategy by Business Division which constitutes of four business areas to achieve our target. That is, we conduct the strategy fit for each business characteristic point of view, based on its specialty and co
Slide 12: Investment on high growth business
Investment on high growth business. For Consumer Electronics business area, we will expand ‘premium’ product lineup in targeted countries in Asia and strengthen product lineup in India and sales force in Africa. For Housing business area, we will increase the number of operating sites to expan
Slide 13: FY19 sales target by business area
FY19 sales target by business area. We revisit our original 10 tri. yen sales target with five business areas as follows: 1) Distribute Devices business area into Consumer Electronics and B2B business areas. 2) Include non‐organic growth which is promising at this point, mainly in Housing an
Slide 14: FY19 OP target by business area
FY19 OP target by business area. Total OP of Consumer Electronics, Housing and Automotive business areas: 300 bil. yen Total OP of B2B business area: 200 bil. yen We believe that the targets of Consumer Electronics, Housing and Automotive business areas are promising. Meantime, we will work
Slide 15: FY19 financial target
FY19 financial target. We target at 500 bil. yen of OP and more than 250 bil. yen of net income. We show our net income target since we have strengthened our profit structure for the past few years by restructuring and now we are able to set net income as one of the financial target. We will
Slide 16: FY17
FY17. Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Slide 17: FY17 financial target
FY17 financial target. Sales maintain the same level of 7.5 tri. yen as FY16. A slow ICT (information and communication technology) demand offsets a positive impact from the consolidation of Hussmann Corporation. OP declines by 35 bil. yen to 375 bil. yen Copyright (C) 2016 Panasonic Corporati
Slide 18: OP target set lower than FY16 to invest in growth
We set OP target lower than FY16 since we will further invest on growing business areas. We concentrated too much on a single year profit making, we were unable to thoroughly invest for future and we did not spend money enough for growth. We will prioritize investment towards future growth mai
Slide 19: Investing in growing business areas in FY17
We will invest on growing business area in FY17 to lay foundation for growth. By upfront investment and strategic investment of 1 tri. yen, we will turn to a growth phase both in sales and profit in FY18, and will constantly expand both sales and profit from FY19 onward. Copyright (C) 2016 Panas
Slide 20: Thank you for your cooperation
Thank you for your cooperation. Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Slide 21: Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Slide 22: Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.