Panasonic Holdings Corporation · TSE:6752

Panasonic — FY2016 Earnings Presentation

31 slides from Panasonic's earnings presentation, Mar 31, 2016

  1. Slide 1: Consolidated financial results for fiscal 2016 and forecast for fiscal 2017

     This presentation contains consolidated financial result for fiscal 2016 ended March 31, 2016 and current financial forecast for fiscal 2017 ending March 31, 2017. Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 1

  2. Slide 2: FY16 financial result and FY17 financial forecast

     1) FY16 financial result: Sales decreased due to downsizing businesses such as TV and slow demand in solar panel and ICT related businesses. Profit increased due to improving profit structure, particularly in appliance and Vertical Solution business.  2) FY17 financial forecast: As we announced o

  3. Slide 3: FY16 financial result

     FY16 financial result. Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 3

  4. Slide 4: Consolidated group sales decreased by 2% and OP increased by 33.8 bil. yen

     Consolidated group sales decreased by 2% and consolidated group sales in real terms excluding exchange rate effect decreased by 4% y-y.  OP increased by 33.8 bil. yen y-y to 415.7 bil. yen, net income attributable to Panasonic Corporation increased by 13.8 bil. yen y-y to 193.3 bil. yen, where bo

  5. Slide 5: FY16 sales analysis by region excluding exchange rate effect

     FY16 sales analysis by region excluding exchange rate effect.  Exchange rate movement positively impacted with 119.2 bil. yen, offsetting the negative impact of the emerging countries’ currency depreciation and yen appreciation starting in Q3.  Japan: sales decreased due to sluggish business in

  6. Slide 6: FY16 operating profit analysis

     FY16 operating profit analysis.  Operating profit increased by 33.8 bil. yen due to fixed cost reduction including restructuring benefit, streamlining of material- related process and benefit from business structure change, offsetting the negative impact from exchange rate movement mainly in the

  7. Slide 7: FY16 pre-tax and net income analysis

     FY16 pre-tax and net income analysis.  Non-operating loss was 198.7 bil. yen with 65.8 bil. yen of business restructuring expenses and 69.1 bil. yen of legal cost related to rechargeable battery and CRT TV businesses. Accordingly, pre-tax income amounted to 217.0 bil. yen.  DTA (deferred tax ass

  8. Slide 8: FY16 FCF and net cash

     FY16 FCF and net cash.  FCF was 124.4 bil. yen due to company-wide project to create cash flow, and 222.9 bil. yen excluding strategic investment which exceeded our original target of 200.0 bil. yen.  Cash conversion cycle was 30 days, improving 6 days y-y.  Net cash as of March 31, 2016 decrea

  9. Slide 9: FY16 result by segment

     FY16 result by segment.  Sales increased only in AVC Networks. OP increased in Appliances and AVC Networks and decreased in Eco Solutions and Automotive & Industrial Systems. Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 9

  10. Slide 10: FY16 sales and OP analysis by segment

     FY16 sales and OP analysis by segment.  Appliances: sales decreased, since favorable appliance business was unable to offset negative impact from downsizing of TV business. OP increased due to improvement in profitability of high-end appliance business, and TV business which returned to black. 

  11. Slide 11: Sales and OP in six large-scale and TV BDs

     Sales and OP in six large-scale and TV BDs.  Automotive Infotainment Systems: profit decreased due to R&D investment increase for future growth.  Rechargeable Battery: profit decreased due to significant sales decrease in ICT related business such as notebook PCs.  TV: profit returned to black

  12. Slide 12: FY17 financial forecast

     FY17 financial forecast. Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 12

  13. Slide 13: IFRS voluntary adoption

     IFRS voluntary adoption.  We will voluntarily adopt IFRS from FY17 year end as we announced on April 28, 2015.  US GAAP will be continued to be adopted until Q3 for financial announcements. Meantime, since we start to adopt IFRS for our internal management from Q1, we will release segment and BD

  14. Slide 14: FY17 financial forecast

     FY17 financial forecast.  The figures in US GAAP are also disclosed as reference. The major changes from US GAAP to IFRS are: scope of consolidated subsidiaries, definition of non-operating income/loss, and capitalization of part of R&D expenses.  Consolidated group sales in FY17 which remain th

  15. Slide 15: FY17 operating profit analysis on adjusted OP and other income/loss

     FY17 operating profit analysis both on adjusted OP and other income/loss in comparison with the previous fiscal year.  As it is shown on right hand, adjusted OP is expected to decrease by 28.2 bil. yen y-y due to significant fixed cost increase of upfront investment in high-growth business such a

  16. Slide 16: FY17 segment forecast

     FY17 segment forecast.  Adjusted OP, Other income/loss and OP are disclosed in each segment.  Fixed cost increase included not only upfront investment in each segment but also some other investment not attributable to any segment in elimination and adjustments in addition to investment in PanaHo

  17. Slide 17: Appliances

     Appliances (production and sales consolidated.)  Business categories in the right-hand chart will be disclosed from FY17. The last page shows all business categories.  Under the business environment in the major regions, sales in real terms excluding exchange rate effect are expected to grow by

  18. Slide 18: Forecast by BD

     Forecast by BD. Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 18

  19. Slide 19: Eco Solutions

     Eco Solutions.  Sales are expected to increase by 4% y-y in real terms excluding exchange rate effect, led by Lighting BD and Panasonic Ecology Systems Co., Ltd. under the business environment mentioned.  Adjusted OP is expected to increase due mainly to sales expansion and streamlining, offsett

  20. Slide 20: Forecast by BD

     Forecast by BD. Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 20

  21. Slide 21: AVC Networks

     AVC Networks.  Sales are expected to increase in all four categories, by 4% y-y in real terms excluding exchange rate effect under the business environment mentioned.  Adjusted OP is expected to decline due mainly to Solutions business where we had one-time demand increase in FY16 and upfront in

  22. Slide 22: Forecast by BD

     Forecast by BD. Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 22

  23. Slide 23: Automotive & Industrial Systems

     Automotive & Industrial Systems.  Sales in real terms excluding exchange rate effect are expected to increase by 2% y-y due to favorable Energy and Factory Solutions businesses under the business environment mentioned.  Adjusted OP is expected to decrease due to fixed cost increase with aggressi

  24. Slide 24: Forecast by BD: Energy

     Forecast by BD.  In Energy, we will continue to invest on automotive battery business where the market is expected to expand to meet our customers’ demand. Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 24

  25. Slide 25: Forecast in six large-scale and TV BDs

     Forecast in six large-scale and TV BDs. We will continue to disclose figures in these BDs in FY17.  Profitability in Housing Systems and TV is still in progress to improve and we will continue to accelerate profit structure enhancement.  In Rechargeable Battery, we will accelerate investment in

  26. Slide 26: Follow-up on business policy announced on March 31, 2016

     We would like to follow up our business policy announced on March 31, 2016.  Starting from FY17, we will divide our BDs into three business categories defined by business characteristic point of view and competitiveness in order to make our best business decision. We will explain more in detail a

  27. Slide 27: FY19 group financial target restated in IFRS

     FY19 group financial target are restated in IFRS with OP of 450 bil. yen and net income attributable to owners of the parent company of 250 bil. yen or more . Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 27

  28. Slide 28: Thank you for your cooperation

     Thank you for your cooperation. Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 28

  29. Slide 29: Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

    Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 29

  30. Slide 30: Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

    Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 30

  31. Slide 31: Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

    Copyright (C) 2016 Panasonic Corporation All Rights Reserved. 31

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