Panasonic Holdings Corporation · TSE:6752
Panasonic — Investor Presentation (May 2024)
24 slides from Panasonic's investor presentation, May 17, 2024
Slide 1: Group Strategy Briefing
Group Strategy Briefing Yuki Kusumi, Group CEO Panasonic Holdings Corporation May 17, 2024 Notes: 1. This is an English translation from the original presentation in Japanese. 2. In this presentation, “Fiscal 2024” or “FY3/24” refers to the year ended March 31, 2024. In addition, “Fiscal 2025” or “F
Slide 2: Final year of Medium-term Strategy
Final year of Medium-term Strategy Management Indicators: Cumulative operating CF: ROE: 10% or more Cumulative OP: KGI 2.0 trillion yen (FY3/23-25) 1.5 trillion yen (FY3/23-25) FY3/25 (e) ✓ To be achieved × To be unachieved × To be unachieved Management emphasizing cash flows is taking root Achieved
Slide 3: Groupwide Focal Initiatives for Final Year of Medium-term Strategy
Groupwide Focal Initiatives for Final Year of Medium-term Strategy Strengthen business foundations of investment areas - Automotive batteries: Aim for management structure to ensure sustainable double-digit ROIC (including IRA) from FY3/28 onward - Air quality & air-conditioning: Continue to enhance
Slide 4: Strengthen Business Foundations of Investment Areas
Strengthen Business Foundations of Investment Areas
Slide 5: Automotive Batteries: Changes in Market Conditions
Automotive Batteries: Changes in Market Conditions • Shift to EV expected to continue globally from long-term perspective, while temporary slowdown of growth in North America • Transition of battery platform continues with technological evolution Slowdown factors of EV market growth in North America
Slide 6: Automotive Batteries: Establishing Foundations for Stronger Competitiveness
Automotive Batteries: Establishing Foundations for Stronger Competitiveness (Size of circle represents GWh) Strengthen customer base - Establishing strategic partnership with SUBARU and Mazda - Signed supply contracts with Lucid and Hexagon Purus For North For Japan America （Over 80%) Improve produc
Slide 7: Air quality & air-conditioning: Air To Water (A2W) in Europe
Air quality & air-conditioning: Air To Water (A2W*) in Europe Ride the wave of growth by acting before large-scale market growth Outlook for A2W market in Europe Initial assumption Slowdown in growth due to normalization Current assumption of gas prices, revision of subsidy policy in various countri
Slide 8: Increase market share with product value that's also beneficial to installers
Air quality & air-conditioning: Air To Water (A2W) in Europe Strengthen business partnership with installers - Expand sales channels through collaboration with energy providers and utility companies in key markets aiming to increase market-share (e.g., Germany, France) - Provide predictable maintena
Slide 9: SCM Software: Continuous Transformation of Blue Yonder
SCM Software: Continuous Transformation of Blue Yonder Aim to revolutionize SCM solutions while continuously strengthening business foundations Continue to strengthen business foundations (3-year cumulative strategic investment of USD 200M) - Improve product competitiveness with R&D enhancement 1st
Slide 10: SCM Software: Achieve Overwhelming Competitive Advantage
SCM Software: Achieve Overwhelming Competitive Advantage Unify Blue Yonder’s “Supply Chain (SC) Optimization Technologies” with high degree of accuracy and One Network’s “Digital Supply Chain Platform (PF)” • Demand Forecast & • Inventory Optimization • Warehouse Create synergy effect Planning • Sup
Slide 11: Business Portfolio Management & Financial Strategy
Business Portfolio Management & Financial Strategy
Slide 12: Business Portfolio Management
Business Portfolio Management (1) Relevance to Groupwide common strategy “Contributions to global environment” “Contributions to each customer’s life-long health, safety, and comfort” (2) Market position & competitiveness Assess each business’ position & profitability with expectation of market grow
Slide 13: Best-ownership Perspective: Case of Panasonic Automotive Systems (PAS)
Best-ownership Perspective: Case of Panasonic Automotive Systems (PAS) Automotive industry facing biggest transition in 100-year history Shift to electrification & software-defined vehicle*: Rapid technological innovation Significant change in industry & competitive Significant landscape opportunity
Slide 14: Thorough Discipline with Cash & ROIC
Thorough Discipline with Cash & ROIC Rigorously manage each business based on cash and return on invested capital (ROIC) to establish a strong financial & profitability structure Implemented To be strictly managed from FY3/25 Cash-oriented discipline ROIC-based discipline (operating company basis) (
Slide 15: Capital Allocation Policy (FY3/23 – FY3/25)
Capital Allocation Policy (FY3/23 – FY3/25) Unchanged policy of “investment, dividends, etc. to be managed within cash generated through businesses” CF generation CF allocation Dividends Dividends 0.2 tr. yen - In principle, distribute profits to shareholders based on business performance and strive
Slide 16: Enhance Management Structure of the Group
Enhance Management Structure of the Group
Slide 17: Panasonic Group Human Capital Management
Panasonic Group Human Capital Management As a company that develops people before making products, we aim to create the best workplaces with a sense of fulfillment enabling diverse employees to make the most of their skills Ideal society with affluence both in matter and mind Autonomous responsible
Slide 18: Toward Management that Maximizes Potential of Each Employee
Toward Management that Maximizes Potential of Each Employee - Expand transfer/assignment system by open recruitment to further support autonomous Employees Well-being Work with a sense of career design fulfillment - Nurture personnel with data & technology expertise to overcome challenges at frontli
Slide 19: Case of HR Management System at Panasonic Industry
Toward Management that Maximizes Potential of Each Employee: Case of HR Management System at Panasonic Industry Implement effective initiatives to unlock employees’ capabilities/potential; Change the mindsets and behaviors of middle managers/employees (1) Elevate level of internal 1on1 (3) Support m
Slide 20: Operational Frontlines Innovations
Operational Frontlines Innovations Corporate culture encouraging challenges to theoretical limits taking root; Cash flow generation capability supported by enhanced operational capability at each business Firmly embed kaizen mindset - Constant kaizen activities have been embedded at 124 sites global
Slide 21: PX (Panasonic Transformation)
PX (Panasonic Transformation) Groupwide “Process standardization”, “Data utilization”, “HR enhancement” “Smart Lab” Digital transformation of “development”, “manufacturing” and “sales” Planning Automatic planning AI - Development: Reduce burden for simple/repetitive experiments with Results Plan “Sm
Slide 22: Today's Summary
Today’s Summary Groupwide investment areas: Strengthen business foundations in preparation for expected market expansion - Automotive batteries: Aim for management structure to ensure sustainable double-digit ROIC (incl. IRA) from FY3/28 onward - Air quality & air-conditioning: Continue to enhance c
Slide 23: Panasonic Group
Panasonic Group
Slide 24: Disclaimer Regarding Forward-Looking Statements
Disclaimer Regarding Forward-Looking Statements This presentation includes forward-looking statements about Panasonic Holdings Corporation (Panasonic HD) and its Group companies (the Panasonic Group). To the extent that statements in this presentation do not relate to historical or current facts, th
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