Panasonic Holdings Corporation · TSE:6752
Panasonic — Q1 2025 Earnings Presentation
37 slides from Panasonic's earnings presentation, Jul 31, 2024
Slide 1: Fiscal 2025 First Quarter Financial Results
Fiscal 2025 First Quarter Financial Results July 31, 2024 Panasonic Holdings Corporation Notes: 1. This is an English translation from the original presentation in Japanese. 2. In this presentation, “Fiscal 2025” or “FY3/25” refers to the year ending March 31, 2025.
Slide 2: Summary of FY3/25 1Q Financial Results
Summary of FY3/25 1Q Financial Results ◼ FY3/25 1Q Financial Results ‧ Overall sales: Increased with increased sales (Connect, Industry) and currency translation, despite decreased sales (Lifestyle, Automotive, Energy) <Major factors> +: Favorable sales of generative AI-related products (Industry, E
Slide 3: Impact of US IRA Tax Credit on Financial Results
Impact of US IRA Tax Credit on Financial Results ✓ Among monetization methods of “Deductible tax credit,” “Refundable tax credit (direct pay)” and “Transferable tax credit,” assuming to elect “Refundable” for FY3/25 1Q (same accounting treatment as before) ✓ Half of total tax credit amount recorded
Slide 4: FY3/25 1Q Financial Results
FY3/25 1Q Financial Results (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Excl. IRA YoY FY3/25 1Q FY3/24 1Q Excl. IRA (year-on-year) Excl. IRA tax credit tax credit tax credit 105% +92.0 104% +87.9 Sales 2,121.7 2,141.8 2,029.7 2,053.9 (98%)*
Slide 5: FY3/25 1Q Results by Segment
FY3/25 1Q Results by Segment YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other YoY OP EBITDA*1 (yen: billions) Sales OP YoY income/ YoY YoY YoY (excl. FX) (%) (%) (%) loss 104% 22.4 23.8 53.2 Lifestyle 868.0 -16.4 1.4 +1.2 -15.2 -12.0 (99%) 2.6% 2
Slide 6: FY3/25 1Q Sales Analysis by Segment
FY3/25 1Q Sales Analysis by Segment Overall sales increased: Increased sales (Connect, Industry) and currency translation, despite decreased sales (Lifestyle, Automotive, Energy) Price revisions for lower raw materials: -17.0 Other/Eliminations & adjustments +129.7 2,121.7 (yen: billions) Entertainm
Slide 7: FY3/25 1Q Operating Profit Analysis by Segment
FY3/25 1Q Operating Profit Analysis by Segment Adjusted OP decreased: Decreased profit (Lifestyle, Connect, Energy) despite increased profit (Automotive, Industry) (yen: billions) Cost of transfer/monetization of IRA tax credit: -5.5 90.4 -16.4 +14.4 -13.9 +5.4 -1.9 +1.9 83.8 +5.2 -1.3 Other/ Other
Slide 8: Lifestyle Segment: FY3/25 1Q Results by Divisional Company
Lifestyle Segment: FY3/25 1Q Results by Divisional Company (yen: billions) Adjusted Other YoY OP EBITDA*2 Sales OP YoY income/ YoY YoY YoY (excl. FX) loss (%) (%） (%) Living Appliances and 99% 8.4 8.5 15.3 Solutions Company 197.5 -5.1 0.1 +0.2 -4.9 -4.3 (LAS) (94%) 4.3% 4.3% 7.8% Heating & Ventilati
Slide 9: FY3/25 1Q Operating Profit Analysis (by Factor)
FY3/25 1Q Operating Profit Analysis (by Factor) Adjusted OP decreased: Decreased sales and increased fixed costs for future growth, despite progress in rationalization, etc. Sales (yen: billions) increase/decrease Includes cost of transfer/monetization: -5.5 in real terms Price revisions, rationaliz
Slide 10: FY3/25 1Q Cash Flows and Cash Positions
FY3/25 1Q Cash Flows and Cash Positions ✓ Operating CF increased slightly year-on-year ✓ Continue to generate further operating CF toward medium-term target (3-year cumulative operating CF of 2 tr. yen) Cash Flows Gross cash & interest-bearing debt / Net cash (yen: billions) (yen: billions) Gross ca
Slide 11: Initiatives in Investment Areas
Initiatives in Investment Areas Underlined: Changes/progress from May 2024 (Automotive Battery, Supply Chain Management Software, Air Quality & Air-conditioning) Achieve profit growth focusing on North America market where we can leverage advantages (high-capacity cells) with strong business foundat
Slide 12: Strategic Capital Partnership and Establishment of New Company of Projector Business, etc.
Strategic Capital Partnership and Establishment of New Company of Projector Business, etc. Panasonic Connect announced a strategic capital partnership* with ORIX Corporation regarding its projector business and related operations, aiming to accelerate further growth (Share ratio of new company: 80%
Slide 13: Panasonic Group
Panasonic Group
Slide 14: Disclaimer Regarding Forward-looking Statements
Disclaimer Regarding Forward-looking Statements This presentation includes forward-looking statements about Panasonic Holdings Corporation (the "Company") and its Group companies (the "Panasonic Group"). To the extent that statements in this press release do not relate to historical or current facts
Slide 15: Reference: Our Advantages with Regards to US IRA
Reference: Our Advantages with Regards to US IRA ✓ Stable mass-production capability at Nevada Factory (New Kansas factory under construction) Our Advantages ✓ Strong customer base built in North America ✓ Panasonic’s battery components are FEOC*-compliant *FEOC: Foreign Entity of Concern If a clean
Slide 16: Reference: Overview of US Inflation Reduction Act (IRA)
Reference: Overview of US Inflation Reduction Act (IRA) ✓ IRA: Enacted in August 2022, aimed to reduce excessive inflation and promote energy policies ✓ Panasonic Energy’s business expected to be eligible for “battery cell ($35/kWh)” in section 45X ✓ Proposed rules for section 45X released in Decemb
Slide 17: Summary of Foreign Entity of Concern (FEOC)
Reference: Summary of Foreign Entity of Concern (FEOC) If a clean vehicle contains “Battery Components” or “Critical Minerals” from a FEOC, it will not qualify for section 30D and no tax credit will be granted to EV purchasers ■Definition of FEOC Excerpts sourced from "A Proposed Rule by the Energy
Slide 18: Eligible EV Battery Factories for US IRA Section 45X
Reference: Eligible EV Battery Factories for US IRA Section 45X ✓ Credit effective at: - Nevada Factory (already in operation): from launch of IRA - New Kansas Factory: upon start of production & sales (FY3/25 4Q) ✓ Wakayama Factory: expecting mass production of 4680 cells in FY3/25 2Q <Ref.> Simple
Slide 19: Reference: Impact of US IRA Tax Credit on Financial Results
Reference: Impact of US IRA Tax Credit on Financial Results (Unchanged from initial forecast as of May 9) ✓ Among monetization methods of “Deductible tax credit,” “Refundable tax credit (direct pay)” and “Transferable tax credit,” assuming to elect “Refundable,” same as before ✓ Half of total tax cr
Slide 20: Reference: FY3/25 Forecast (Unchanged from initial forecast as of May 9)
Reference: FY3/25 Forecast (Unchanged from initial forecast as of May 9) YoY % figures represent the year-on-year change relative to the previous year's figures (yen: billions) FY3/25 (e) Excl. IRA tax credit FY3/24 Excl. IRA tax credit YoY (year-on-year) Excl. IRA tax credit 101% Sales 8,600.0 8,70
Slide 21: Reference: FY3/25 Forecast by Segment
Reference: FY3/25 Forecast by Segment (Unchanged from initial forecast as of May 9) (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other OP EBITDA*1 Sales YoY OP YoY income/ YoY YoY YoY (% to sales) (% to sales) (% to sales) loss 102%
Slide 22: Reference: Lifestyle Segment: FY3/25 Forecast by Divisional Company
Reference: Lifestyle Segment: FY3/25 Forecast by Divisional Company (Unchanged from initial forecast as of May 9) (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other Sales YoY OP YoY income/ YoY OP YoY EBITDA*2 YoY (%) (%) (%) loss L
Slide 23: FY3/25 1Q Segment Information: Lifestyle
Reference: FY3/25 1Q Segment Information Lifestyle Overview Sales decreased overall (excluding effect of exchange rates): Aggregated sales of 4 divisional companies* were at the same level YoY; (yen: billions) FY3/25 1Q YoY (year-on-year) decreased sales (A2W in Europe, consumer electronics in China
Slide 24: FY3/25 1Q Segment Information: Automotive
Reference: FY3/25 1Q Segment Information Automotive Overview Sales: Decreased (excluding effect of exchange rates) due to (yen: billions) FY3/25 1Q YoY (year-on-year) discontinuation of production for certain models, sluggish sales in China, and impact of reduced production by car manufacturers 107%
Slide 25: FY3/25 1Q Segment Information: Connect
Reference: FY3/25 1Q Segment Information Connect Overview Sales: Increased sales of Process Automation capturing recovery trend of (yen: billions) FY3/25 1Q YoY (year-on-year) smartphone demand in China, Gemba Solutions and Avionics 113% Sales 297.9 (104%)*1 (yen: billions) +24.5 297.9 Media Gemba S
Slide 26: Reference: Blue Yonder's KPIs
Reference: Blue Yonder’s KPIs Connect Sales / Adjusted OP (stand alone) Recurring / SaaS ratio ◼ Steady growth of SaaS Adjusted OP increased QoQ, despite strategic investment ◼ Steady trend for both recurring and SaaS ratio （M US$） YoY Recurring ratio 328 324 321 326 330 101％ YoY 73% 72% 72% +2％ pt.
Slide 27: Reference: FY3/25 Forecast of Blue Yonder
Reference: FY3/25 Forecast of Blue Yonder (Unchanged from initial forecast as of May 9) Connect Adjusted OP (stand alone) excluding investments increased by 1.3 bil. yen in FY3/25 1Q Unchanged from initial forecast Breakdown of adjusted operating profit (yen: billions) FY3/25 FY3/24 FY3/25 FY3/24 Yo
Slide 28: FY3/25 1Q Segment Information: Industry
Reference: FY3/25 1Q Segment Information Industry Overview Sales: Increased due mainly to increased sales of products for generative AI YoY PID servers (capacitors, multi-layer circuit board materials), ICT terminals (yen: billions) FY3/25 1Q (year-on-year) Products*1 (capacitors), despite decreased
Slide 29: Situation of Voluntarily Disclosed Businesses: Electronic Devices
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 1Q) Industry Electronic Devices ◼ 1Q: Both sales and profit increased +: Continuing favorable sales of capacitors for generative AI servers in the information & communication infrastructure area; Favorable sales of capacitors for ICT t
Slide 30: Electronic Devices: BB ratio of capacitors
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 1Q) Industry Electronic Devices: BB ratio* of capacitors *BB ratio: book-to-bill ratio ◼ FY3/25 1Q BB ratio reached 1.18, exceeding FY3/24 4Q: Sharp increase in orders received for the information & communication infrastructure area an
Slide 31: Situation of Voluntarily Disclosed Businesses: FA Solutions
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 1Q) Industry FA Solutions * 3C: Consumer, Computer, Communication ◼ 1Q: Both sales and profit increased overall • Sales increased due to normalization of distribution inventory and increased demand for 3C*-related capital investment in
Slide 32: Situation of Voluntarily Disclosed Businesses: Electronic Materials
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 1Q) Industry Electronic Materials ◼ 1Q: Sales and profit increased due to favorable sales of multi-layer circuit board materials for generative AI servers in the information & communication infrastructure area ◼ FY3/25: Aim for sales e
Slide 33: FY3/25 1Q Segment Information: Energy
Reference: FY3/25 1Q Segment Information Energy Overview Sales: Decreased due to decreased sales in In-vehicle with decreased production at Japan factory and price revisions reflecting lower raw material prices, (yen: billions) FY3/25 1Q YoY (year-on-year) despite increased sales in Industrial / Con
Slide 34: Reference: Business Growth related to Generative AI
Reference: Business Growth related to Generative AI Achieve business growth by capturing opportunity of market expansion for generative AI Industry Energy ✓ Product: ✓ Product: Energy storage systems (Industrial / Consumer) • Conductive polymer capacitors (Electronic Devices) ✓ Usage: Data centers •
Slide 35: Reference: FY3/25 1Q Operating Profit & Net Profit
Reference: FY3/25 1Q Operating Profit & Net Profit (yen: billions) YoY FY3/25 1Q FY3/24 1Q (year-on-year) Operating profit 83.8 90.4 -6.6 Non-operating income/loss 20.9 18.3 +2.6 Profit before income taxes 104.7 108.7 -4.0 *1 Income taxes -28.5 97.8 -126.3 *1 Net profit 76.2 206.5 -130.3 Net profit
Slide 36: Reference: Medium-term Management Indicators: KGI
Reference: Medium-term Management Indicators: KGI (yen: billions) Cumulative Operating CF Reference ROIC (FY3/23-FY3/25) (2-year cumulative results) (FY3/25) Forecast FY3/23 - FY3/24 Progress Rate Forecast Initial Target (vs forecast as of Initial Target (as of May 2024) Cumulative May 2024) (as of
Slide 37: Reference: List of Voluntarily Disclosed Businesses in FY3/25
Reference: List of Voluntarily Disclosed Businesses in FY3/25 Lifestyle Businesses with Sales Disclosed Major Business Divisions, etc. (Panasonic Corporation) (Adjusted OP disclosed for underlined businesses) Living Appliances and • Kitchen Appliances : Kitchen Appliances BD Note 1: Sales and profit