Panasonic Holdings Corporation · TSE:6752
Panasonic — Q1 2023 Earnings Presentation
27 slides from Panasonic's earnings presentation, Jul 29, 2022
Slide 1: Fiscal 2023 First Quarter Financial Results
Fiscal 2023 First Quarter Financial Results July 28, 2022 Panasonic Holdings Corporation Notes: 1. This is an English translation from the original presentation in Japanese. 2. In this presentation, “Fiscal 2023” or “FY23” refers to the year ending March 31, 2023.
Slide 2: Summary of FY23 1Q Financial Results
Summary of FY23 1Q Financial Results • Overall sales increased from same quarter of FY22 Increased sales (e.g. automotive batteries), consolidation of Blue Yonder and effect of exchange rates, despite impact on production & sales from Shanghai lockdown and semiconductor, parts & materials shortages
Slide 3: FY23 1Q Financial Results
FY23 1Q Financial Results (yen: billions) FY23 1Q FY22 1Q Difference / vs. FY22 +10% +181.5 Sales 1,973.9 1,792.4 （+2%) *** （+38.2) *** Adjusted OP* 65.7 (3.3%) 119.5 (6.7%) -45% -53.8 (% to sales) Other income/loss** -2.0 -15.1 +13.1 Operating profit 63.7 (3.2%) 104.4 (5.8%) -39% -40.7 (% to sales)
Slide 4: FY23 1Q Results by Segment
FY23 1Q Results by Segment (yen: billions) vs. FY22 Adjusted Other Sales (Excl. effect of FY22 income/ FY22 OP FY22 EBITDA* FY22 OP Difference Difference (% to sales) Difference (% to sales) Difference exchange (% to sales) loss *1 rates) Lifestyle 836.5 +7% 35.7 -11.0 2.6 +4.2 38.3 -6.8 63.1 -5.1 (
Slide 5: FY23 1Q Sales Analysis by Segment
FY23 1Q Sales Analysis by Segment • Overall sales increased: Increased sales (e.g. automotive batteries), consolidation of Blue Yonder and effect of exchange rates, despite impact on production and sales resulting from Shanghai lockdown and semiconductor, parts & materials shortages 1,973.9 (yen: bi
Slide 6: FY23 1Q Operating Profit Analysis by Segment
FY23 1Q Operating Profit Analysis by Segment ・ Adjusted OP: Decreased at all segments (yen: billions) 104.4 Lifestyle Other/ Eliminations & Automotive adjustments 63.7 Connect Industry Energy Other income/ loss FY22 Adjusted OP: -53.8 FY23 1Q OP: -40.7 1Q Major increase/decrease factors Decreased: A
Slide 7: Lifestyle Segment: FY23 1Q Results by Divisional Company
Lifestyle Segment: FY23 1Q Results by Divisional Company (yen: billions) vs. FY22 Adjusted Other (Excl. effect FY22 FY22 OP FY22 EBITDA** FY22 Sales of exchange OP Difference income/ Difference (% to sales) Difference (% to sales) Difference rates) (% to sales) loss Living Appliances and Solutions 2
Slide 8: FY23 1Q Operating Profit Analysis (by Factor)
FY23 1Q Operating Profit Analysis (by Factor) • Increased sales and efforts like price revisions unable to offset impact from changes in business environment (e.g. Shanghai lockdown, semiconductor, parts & material shortages, raw material price hikes) and other negative factors (e.g. increased fixed
Slide 9: FY23 1Q FCF and Cash
FY23 1Q FCF and Cash • FCF secured at same level of net profit, despite being below FY22 level of FCF, due to decreased adjusted operating profit and increased inventories • Cash generation efforts will be made in 2Q onward, mainly by reducing inventories affected by external factors and controlling
Slide 10: Impact from Changes in Business Environment
Impact from Changes in Business Environment • Implement countermeasures such as alternative procurement and price revisions while assuming impact of semiconductor, parts & materials shortages and raw material price hikes will remain in FY23 2Q onward Semiconductor, parts & Price hikes in Changes in
Slide 11: Result Trends by Quarter (Sales and Adjusted Operating Profit)
Result Trends by Quarter (Sales and Adjusted Operating Profit) • On recovery trend after hitting bottom in 1Q (May) affected by Shanghai lockdown • Each operating company will accelerate initiatives to enhance competitiveness based on medium- to long-term strategy Adjusted OP: Monthly trend (yen: bi
Slide 12: Announcements related to IR information in FY23
Announcements related to IR information in FY23 • Announcements on initiatives based on medium- to long-term strategy after the launch of new structure Groupwide/Panasonic Holdings Operating Companies Group Strategy Briefing (by Group CEO) Apr. 1 • Medium-term Group KGIs Commencing preparations for
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 (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
Slide 15: FY23 1Q Segment Information Lifestyle
(Reference) FY23 1Q Segment Information Lifestyle Overview Sales increased overall: Steady sales overseas mainly with priority vs. FY22 1Q/ businesses, despite decreased sales in Japan for Living Appliances (yen: billions) FY23 1Q Difference and Solutions Company +7% (yen: billions) 836.5 Sales 836.
Slide 16: FY23 1Q Segment Information Automotive
(Reference) FY23 1Q Segment Information Automotive Overview Sales increased: Effect of exchange rates despite impact of reduced automobile production vs. FY22 1Q/ (yen: billions) FY23 1Q Difference (yen: billions) 269.6 +4% Automotive Sales 269.6 (-3%)* 259.0 Electronics Systems Others** Adjusted op
Slide 17: FY23 1Q Segment Information Connect
(Reference) FY23 1Q Segment Information Connect Overview Sales increased: Increased sales of Avionics reflecting market vs. FY22 1Q/ recovery in aviation industry, as well as consolidation of Blue Yonder, (yen: billions) FY23 1Q Difference despite decreased sales of Gemba Solutions due to post-Olymp
Slide 18: (Reference) Blue Yonder's KPIs
(Reference) Blue Yonder’s KPIs Connect Revenue Recurring / SaaS ratio Achieved double-digit growth vs FY22, and Recurring ratio almost unchanged, but SaaS ratio continuous growth expected achieved steady growth (USD: millions） 309 68.8% 69.0% 69.1% 68.8% 68.3% 286 293 289 272 Recurring ratio 全体
Slide 19: FY23 1Q Segment Information Industry
(Reference) FY23 1Q Segment Information Industry Sale increased: Effect of yen depreciation, despite decreased Overview sales from semiconductor shortages, Shanghai lockdown, and (yen: billions) vs. FY22 1Q/ PID termination of semiconductor/LCD businesses FY23 1Q Difference Products* Effect of (yen:
Slide 20: FY23 1Q Segment Information Energy
(Reference) FY23 1Q Segment Information Energy Overview Sales increased: Sales growth of automotive batteries reflecting robust EV demand, offsetting decreased sales resulting from (yen: billions) vs. FY22 1Q/ FY23 1Q dry battery business transfer in Europe Difference 227.8 (yen: billions) +21％ Sale
Slide 21: (Reference) Commercialization of 4680 Cells
(Reference) Commercialization of 4680 Cells Energy ・ Mass production of high-capacity 4680 cells in Wakayama, Japan; supply to North America market (from FY24) ・ Construction of manufacturing facility in U.S. to be decided upon assessment of manufacturing and operational capabilities in Japan ■Sched
Slide 22: (Reference) FY23 1Q Operating Profit & Net Profit
(Reference) FY23 1Q Operating Profit & Net Profit (yen: billions） FY23 1Q FY22 1Q Difference Operating profit 63.7 104.4 -40.7 Non-operating income/loss 9.8 4.1 +5.7 Profit before income taxes 73.5 108.5 -35.0 Income taxes -20.9 -27.3 +6.4 Net profit 52.6 81.2 -28.6 Net profit attributable to Panaso
Slide 23: (Reference) Medium-term Management Indicators: KGI
(Reference) Medium-term Management Indicators: KGI (yen: billions） Cumulative Operating CF ROIC (FY23-25) (FY25) Lifestyle 660 10.0% or more Automotive 200 8.5% Connect 260 4.6% Industry 390 or more 20.0% Energy 330 12.0% Group Total 2,000 ROE 10% or more Note: Above data from presentation materials
Slide 24: (Reference) FY23 Financial Forecast
(Reference) FY23 Financial Forecast (yen: billions) FY23 (e) FY22 vs. FY22 / Difference Sales 7,900.0 7,388.8 +7% +511.2 Adjusted operating profit* (% to sales) 380.0 (4.8%) 357.7 (4.8%) +6% +22.3 Other income/loss** -20.0 -0.2 -19.8 Operating profit 360.0 357.5 (4.6%) (4.8%) +1% +2.5 (% to sales) N
Slide 25: (Reference) FY23 Financial Forecast by Segment
(Reference) FY23 Financial Forecast by Segment (yen: billions) Adjusted Other vs. FY22 FY22 FY22 OP FY22 EBITDA* FY22 Sales OP Difference income/ Difference (% to sales) Difference (% to sales) Difference (Difference) (% to sales) loss Lifestyle 3,232.0 +2% 135.0 +3.5 -11.0 +12.3 124.0 +15.8 228.0 +
Slide 26: (Reference) Lifestyle Segment: FY23 Forecast by Divisional Company
(Reference) Lifestyle Segment: FY23 Forecast by Divisional Company (yen: billions) Adjusted Other vs. FY22 FY22 FY22 OP FY22 EBITDA** FY22 Sales OP income/ (Difference) Difference Difference (% to sales) Difference (% to sales) Difference (% to sales) loss Living Appliances and Solutions 880.0 +5% 6
Slide 27: (Reference) List of Voluntarily Disclosed Businesses in FY23
(Reference) List of Voluntarily Disclosed Businesses in FY23 Lifestyle Businesses with Sales Disclosed Major Business Divisions, etc. (Panasonic Corporation) • Kitchen Appliances : Kitchen Appliances BD Living Appliances and Solutions Company • Laundry Systems and Vacuum Cleaner : Laundry Systems an