Panasonic Holdings Corporation · TSE:6752
Panasonic — Q1 FY3/24 Earnings Presentation
32 slides from Panasonic's earnings presentation, Jul 31, 2023
Slide 1: Fiscal 2024 First Quarter Financial Results
Fiscal 2024 First Quarter Financial Results July 31, 2023 Panasonic Holdings Corporation 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 ending March 31, 2024.
Slide 2: Summary of FY3/24 1Q Financial Results
Summary of FY3/24 1Q Financial Results ⚫ US Inflation Reduction Act (IRA) ‧ Detailed rules not yet determined; amount equivalent to IRA tax credit recorded in FY3/24 1Q results (Adjusted operating profit) ⚫ FY3/24 1Q Financial Results ‧ Overall sales increased year-on-year: Increased sales (e.g. Aut
Slide 3: Impact of US IRA Tax Credit on Financial Results & Forecast
Impact of US IRA Tax Credit on Financial Results & Forecast ✓ Among monetization methods “Deductible tax credit” “Refundable tax credit (direct pay)” & “Transferable tax credit,” assuming to elect “Refundable” for FY3/24 ✓ Half of total tax credit amount recorded in adjusted OP, assuming effective u
Slide 4: Fiscal 2024 First Quarter Financial Results
Fiscal 2024 First Quarter Financial Results Fiscal 2024 Full-Year Financial Forecast
Slide 5: FY3/24 1Q Financial Results
FY3/24 1Q Financial Results (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures FY3/24 1Q FY3/23 1Q YoY (year-on-year) Sales 103% +55.8 (excl. effect of exchange rates) 2,029.7 1,973.9 （100%) *3 （+5.3) *3 Adjusted operating profit*1 (4.6%) (% to sa
Slide 6: FY3/24 1Q Results by Segment
FY3/24 1Q Results by Segment (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other YoY OP EBITDA*1 Sales OP YoY income/ YoY YoY YoY (excl. FX) (% to sales) (% to sales) (% to sales) loss Lifestyle 838.7 100% 38.9 +3.2 0.2 -2.4 39.1 +0.
Slide 7: FY3/24 1Q Sales Analysis by Segment
FY3/24 1Q Sales Analysis by Segment Overall sales increased: Increased sales (e.g. Automotive, Connect, EV batteries) and currency translation, despite largely decreased sales in Industry • Sales increase (yen: billions) +8.9 -55.5 in real terms: +37.0 Other/Eliminations & adjustments +50.5 2,029.7
Slide 8: FY3/24 1Q Operating Profit Analysis by Segment
FY3/24 1Q Operating Profit Analysis by Segment Adjusted OP increased: Increased in Lifestyle, Automotive, Connect, and Energy, despite a decrease in Industry IRA impact: +20.8 (yen: billions) +16.5 -21.0 +21.1 -7.4 -3.0 +17.7 -0.4 90.4 Industrial/ Other/ Other 63.7 +3.2 Connect In-vehicle Consumer,
Slide 9: Lifestyle Segment: FY3/24 1Q Results by Divisional Company
Lifestyle Segment: FY3/24 1Q Results by Divisional Company (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other YoY OP EBITDA*2 Sales (Excl. FX) OP YoY income/ YoY (% to sales) YoY (% to sales) YoY (% to sales) loss Living Appliances
Slide 10: FY3/24 1Q Operating Profit Analysis (by Factor)
FY3/24 1Q Operating Profit Analysis (by Factor) Adjusted OP increased: Increased sales, progress in price revisions and rationalization, amount equivalent to IRA tax credit recorded as profit, etc. (yen: billions) Effect of exchange rates Other income/loss Sales IRA effect Blue Yonder (BY) +6.2 -0.4
Slide 11: FY3/24 1Q Cash Flows and Cash Positions
FY3/24 1Q Cash Flows and Cash Positions ✓ Operating CF: Increased year-on-year due mainly to initiatives to control inventories and improvements in working capital ✓ Inventories: Continue to reduce inventories toward end of FY3/24 mainly by revising strategic inventory level, despite a temporary inc
Slide 12: Fiscal 2024 Full-Year Financial Forecast
Fiscal 2024 First Quarter Financial Results Fiscal 2024 Full-Year Financial Forecast
Slide 13: FY3/24 Full-Year Forecast Revision
FY3/24 Full-Year Forecast Revision Net profit revised upward reflecting the considerably increased profit in 1Q (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures FY3/24 (e) FY3/24 (e) Difference FY3/23 YoY (year-on-year) (revision as of July 31,
Slide 14: FY3/24 Demand Outlook
FY3/24 Demand Outlook ・・・ Changes from May 10 announcement By Segment Positive (vs. FY3/23) Forecast for FY3/24 Changes in demand Negative (vs. FY3/23) Sales, Adjusted OP ✓ Showcases in North America: Steady Lifestyle ✓ Growth in A2W business in Europe will continue during FY3/24, but slowdown is no
Slide 15: Business Portfolio
Business Portfolio Toward shifting to growth phase, direction to be set in revising business portfolio during FY3/24 Page 20 of “Group Strategy Briefing” presentation slide (announced on May 18, 2023) Fiscal 2024 First Quarter Financial Results © 2023 Panasonic Holdings Corporation. All Rights Reser
Slide 16: Panasonic Group
Panasonic Group
Slide 17: 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 18: 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 ✓ Rules on Section 30D announced in March 2023, but
Slide 19: Reference: Eligible EV Battery Factories for IRA
Reference: Eligible EV Battery Factories for IRA ✓ Credit effective at: - Nevada Factory (already in operation): from launch of IRA - Kansas Factory (under construction): upon start of production & sales during FY3/25 (planned) <Ref.> Simple calculation: Factories Credit effective from Annual produc
Slide 20: Reference: Initiatives in Growth Areas
Reference: Initiatives in Growth Areas Underlined: Changes/progress from May 2023 (Automotive Battery, Supply Chain Software, Air Quality & Air-conditioning) ◼ Achieve profit growth, focusing on North America market where we can leverage advantages (high-capacity cells) with strong business foundati
Slide 21: Reference: FY3/24 Forecast by Segment
Reference: FY3/24 Forecast by Segment (Unchanged from initial forecast as of May 10) (yen: billions) Adjusted Other Sales YoY YoY income/ YoY OP YoY EBITDA*1 YoY OP (% to sales) (% to sales) (% to sales) loss Lifestyle 3,580.0 103% 160.0 +37.6 -9.0 +10.3 151.0 +47.9 259.0 +53.1 (+96.7) 4.5% 4.2% 7.2
Slide 22: Reference: FY3/24 Forecast by Divisional Company in Lifestyle Segment
Reference: FY3/24 Forecast by Divisional Company in Lifestyle Segment (Unchanged from initial forecast as of May 10) (yen: billions) Adjusted Other Sales YoY YoY income/ YoY OP YoY EBITDA*2 YoY OP (% to sales) (% to sales) (% to sales) loss Living Appliances and Solutions Company 976.0 109% 72.0 +19
Slide 23: FY3/24 1Q Segment Information: Lifestyle
Reference: FY3/24 1Q Segment Information Lifestyle Overview Sales: Decreased overall due to deconsolidation impact of part of businesses in China, while sales increased for priority businesses (e.g. HVAC system, (yen: billions) FY3/24 1Q YoY (year-on-year) electrical construction materials in Japan
Slide 24: FY3/24 1Q Segment Information: Automotive
Reference: FY3/24 1Q Segment Information Automotive Sales: Increased due to recovery in automobile production (in FY3/23 1Q, Overview automobile production had been affected by Shanghai lockdown, etc.) (yen: billions) +12.6 341.0 FY3/24 1Q YoY (year-on-year) (yen: billions) Automotive +21.7 127% Coc
Slide 25: FY3/24 1Q Segment Information: Connect
Reference: FY3/24 1Q Segment Information Connect Overview Sales: Increased due to sales growth in Avionics, rugged mobile terminals & notebook PCs, and SaaS of Blue Yonder, despite decreased sales of Process (yen: billions) FY3/24 1Q YoY (year-on-year) Automation 108% Process Sales 263.6 (104%) *1 (
Slide 26: Reference: Blue Yonder's KPIs
Reference: Blue Yonder’s KPIs Connect Revenue / Adjusted OP (stand alone) Recurring / SaaS ratio ◼ Sales: Steady growth of both total sales and SaaS ◼ Steady sales trend for both recurring and SaaS ratio Profit: largely increased YoY （M US$） Recurring ratio 328 YoY 106％ 309 309 307 310 70% 69% 69% 6
Slide 27: Reference: FY3/24 Forecast of Blue Yonder
Reference: FY3/24 Forecast of Blue Yonder (Unchanged from initial forecast as of May 10) Connect ✓ In 1Q, adjusted OP (stand alone) increased by 3.1 bil. yen to 4.3 bil. yen, excluding strategic investment for future growth (product enhancement & synergy creation) ✓ For the full year, adjusted OP (s
Slide 28: FY3/24 1Q Segment Information: Industry
Reference: FY3/24 1Q Segment Information Industry Overview Sales: Decreased due to downturn in market conditions (ICT, FA in China) and changes in semiconductor sales channel, despite increased sales YoY PID (yen: billions) FY3/24 1Q including capacitors for green vehicles (year-on-year) Products*1
Slide 29: FY3/24 1Q Segment Information: Energy
Reference: FY3/24 1Q Segment Information Energy Overview Sales: Increased excluding impact of IRA tax credit to be effectively used with (yen: billions) FY3/24 1Q YoY (year-on-year) customers (deduction of sales); favorable production & sales for In-vehicle, despite decreased sales for Industrial/Co
Slide 30: Reference: FY3/24 1Q Operating Profit & Net Profit
Reference: FY3/24 1Q Operating Profit & Net Profit (yen: billions) FY3/24 1Q FY3/23 1Q YoY (year-on-year) Operating profit 90.4 63.7 +26.7 Non-operating income/loss 18.3 9.8 +8.5 Profit before income taxes 108.7 73.5 +35.2 Income taxes 97.8 -20.9 +118.7 Net profit 206.5 52.6 +153.9 Net profit attrib
Slide 31: Reference: Medium-term Management Indicators: KGI
Reference: Medium-term Management Indicators: KGI (yen: billions） Cumulative Operating CF ROIC (FY3/23-25) (FY3/25) Lifestyle 660 10.0% or more *1 Automotive 200 6.4% Connect 260 4.6% Industry 390 or more 17% or more *2 *3 Energy 330 12.0% Group Total 2,000 ROE 10% or more Note: Above data from pres
Slide 32: Reference: List of Voluntarily Disclosed Businesses in FY3/24
Reference: List of Voluntarily Disclosed Businesses in FY3/24 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