Panasonic Holdings Corporation · TSE:6752
Panasonic — Q2 2025 Earnings Presentation
44 slides from Panasonic's earnings presentation, Oct 31, 2024
Slide 1: Fiscal 2025 Second Quarter Financial Results
Fiscal 2025 Second Quarter Financial Results October 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 2Q Financial Results
Summary of FY3/25 2Q Financial Results ◼ FY3/25 2Q Financial Results: Both Sales and Profit Increased Year-on-Year ‧ Overall sales: Increased with increased sales (Lifestyle, Connect, Industry) and currency translation, despite decreased sales (Automotive, Energy) <Major factors> +: Favorable sales
Slide 3: Fiscal 2025 Full-Year Financial Forecast
Fiscal 2025 Second Quarter Financial Results Fiscal 2025 Full-Year Financial Forecast
Slide 4: FY3/25 2Q Financial Results
FY3/25 2Q Financial Results (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Excl. IRA YoY FY3/25 2Q FY3/24 2Q Excl. IRA (year-on-year) Excl. IRA tax credit tax credit tax credit 102% +39.9 102% +42.2 Sales 2,129.6 2,157.0 2,089.7 2,114.8 (100%)
Slide 5: FY3/25 2Q Results by Segment
FY3/25 2Q 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 105% 25.9 25.6 55.1 Lifestyle 876.0 -3.4 -0.3 +7.8 +4.4 +6.8 (103%) 3.0% 2.
Slide 6: FY3/25 2Q Sales Analysis by Segment
FY3/25 2Q Sales Analysis by Segment Overall sales increased: Increased sales (Lifestyle, Connect, Industry) and currency translation, despite decreased sales (Automotive, Energy) Price revisions for lower raw materials: -18.0 (yen: billions) Entertainment & Head office/ +28.4 -24.3 +26.6 +3.3 -43.6
Slide 7: FY3/25 2Q Operating Profit Analysis by Segment
FY3/25 2Q Operating Profit Analysis by Segment Adjusted OP increased: Increased profit (Connect, Industry, Energy) despite decreased profit (Lifestyle, Automotive) (yen: billions) +7.1 132.2 +7.8 +9.9 102.4 -3.4 +6.0 +4.0 -0.3 Other -1.3 Other/ income/loss Industrial / Eliminations & Industry In-veh
Slide 8: Lifestyle Segment: FY3/25 2Q Results by Divisional Company
Lifestyle Segment: FY3/25 2Q 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 OP YoY income/ YoY YoY YoY (excl. FX) loss (%) (%） (%) Living Appliances and 102% 7.9 8.1 14.9 Solut
Slide 9: FY3/25 2Q Operating Profit Analysis (by Factor)
FY3/25 2Q Operating Profit Analysis (by Factor) Adjusted OP increased: progress in rationalization, etc., despite increased fixed costs (yen: billions) Other Price revisions, income/loss Effect of rationalization, etc. Blue Yonder exchange rates +7.1 132.2 Sales IRA increase/decrease +18.8 +0.5 +0.9
Slide 10: FY3/25 1H Cash Flows and Cash Positions
FY3/25 1H Cash Flows and Cash Positions ✓ Operating CF increased year-on-year, due to monetization of IRA tax credit through “Transferable” method ✓ Continue to generate further operating CF toward medium-term target (3-year cumulative operating CF of 2 tr. yen) Cash Flows Gross cash & interest-bear
Slide 11: Fiscal 2025 Full-Year Financial Forecast
Fiscal 2025 Second Quarter Financial Results Fiscal 2025 Full-Year Financial Forecast
Slide 12: FY3/25 Full-Year Forecast (Unchanged from initial forecast as of May 9)
FY3/25 Full-Year 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 8,701
Slide 13: FY3/25 Full-Year Forecast Revision by Segment
FY3/25 Full-Year Forecast Revision by Segment (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Revised Adjusted Revised Other Revised Revised Revised OP amount amount amount amount EBITDA*1 amount Sales YoY from OP YoY from income/ YoY from (% t
Slide 14: FY3/25 Full-year Forecast Revision Factors by Segment
FY3/25 Full-year Forecast Revision Factors by Segment Major factors for revision (vs. initial forecast as of May 9) Sales revised upward, profit unchanged Sales Lifestyle • Sales: Revised upward with currency translation (yen: billions) • Profit: Improvements in segment head office income/expenses t
Slide 15: Lifestyle Segment: Forecast Revision by Divisional Company
Lifestyle Segment: FY3/25 Full-Year Forecast Revision by Divisional Company (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Revised Adjusted Revised Other Revised Revised Revised amount OP amount amount OP amount EBITDA*2 amount Sales YoY from
Slide 16: Business Growth related to Generative AI
Business Growth related to Generative AI Capturing opportunities for market expansion of generative AI, 1H sales were favorable; Full-year sales expected to significantly exceed the initial forecast as of May 9 Industry Energy ◼ Product: Conductive polymer capacitors ◼ Products: Energy storage syste
Slide 17: Shareholder Return
Shareholder Return ✓ Interim dividend determined at 20 yen per share; year-on-year increase by 2.5 yen ✓ Annual dividend forecast at 40 yen per share; year-on-year increase by 5 yen (same amount as announced on August 30) Interim dividend Annual divided (Determined) (Forecast) Dividend 20 yen 40 yen
Slide 18: Panasonic Group
Panasonic Group
Slide 19: 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 20: Reference: FY3/25 1H Results
Reference: FY3/25 1H Results (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures YoY FY3/25 1H Excl. IRA FY3/24 1H Excl. IRA (year-on-year) Excl. IRA tax credit tax credit tax credit 103% +131.9 103% +130.1 Sales 4,251.3 4,298.8 4,119.4 4,168.7 *4
Slide 21: Reference: FY3/25 Financial Results/Forecast (1H/2H/Full-Year)
Reference: FY3/25 Financial Results/Forecast (1H/2H/Full-Year) (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures 1H Full-year results Excl. IRA YoY Excl. IRA 2H (e) Excl. IRA YoY Excl. IRA forecast Excl. IRA YoY Excl. IRA impact impact impact imp
Slide 22: Reference: Results/Forecast by Segment (1H/2H/Full-Year)
Reference: FY3/25 Financial Results/Forecast by Segment（1H/2H/Full-Year) (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures 1H 2H (e) Full-year forecast Adjusted Adjusted Adjusted Sales YoY OP YoY Sales YoY OP YoY Sales YoY OP YoY (% to sales) (%
Slide 23: Reference: Lifestyle Segment Results/Forecast by Divisional Company
Reference: Lifestyle Segment: FY3/25 Financial Results/Forecast by Divisional Company (1H/2H/Full -year) (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures 1H 2H (e) Full-year forecast Adjusted Adjusted Adjusted Sales YoY OP YoY Sales YoY OP YoY S
Slide 24: Reference: Impact of US IRA Tax Credit on Financial Results
Reference: 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 ✓ Half of total tax credit amount recorded in adjusted OP, assuming effec
Slide 25: 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 planning to start production in FY3/25 4Q) Our Advantages ✓ Strong customer base built in North America ✓ Panasonic’s battery components are FEOC*-compliant, critical minerals a
Slide 26: 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 ✓ Final regulations for section 30D (stipulating ta
Slide 27: 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 28: Eligible EV Battery Factories for US IRA Section 45X
Reference: Eligible EV Battery Factories for US IRA Section 45X ✓ IRA tax credit effective at: - Nevada Factory (in operation): from launch of IRA - New Kansas Factory: upon start of production & sales (FY3/25 4Q) ✓ Wakayama Factory: finalized preparations for mass production of 4680 (September 2024
Slide 29: Reference: Future EV Battery Business in Japan (for New Customers)
Reference: Future EV Battery Business in Japan (for New Customers) ✓ Rebuild business foundation in Japan through strategic partnerships with Mazda Motor Corporation and SUBARU CORPORATION ✓ Both collaboration projects approved by Japan’s Ministry of Economy, Trade and Industry (METI) as part of its
Slide 30: Initiatives in Investment Areas
Initiatives in Investment Areas Underlined: Changes/progress from July 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 founda
Slide 31: FY3/25 2Q Segment Information: Lifestyle
Reference: FY3/25 2Q Segment Information Lifestyle Overview Sales: Increased overall due to steady sales of consumer electronics in Japan and electrical construction materials, despite decreased sales of consumer (yen: billions) FY3/25 2Q YoY (year-on-year) electronics in China affected by weak econ
Slide 32: FY3/25 2Q Segment Information: Automotive
Reference: FY3/25 2Q Segment Information Automotive Overview Sales: Decreased due mainly to discontinuation of production for (yen: billions) FY3/25 2Q YoY (year-on-year) certain models, and sluggish sales mainly in China 96% (yen: billions) Sales 350.8 (93%)*1 367.2 -12.2 Adjusted operating profit
Slide 33: FY3/25 2Q Segment Information: Connect
Reference: FY3/25 2Q Segment Information Connect Overview Sales: Increased with Gemba Solutions (steady orders including multi-year large projects), Process Automation (captured certain investment opportunities even (yen: billions) FY3/25 2Q YoY (year-on-year) with economic slowdown in China), and B
Slide 34: Reference: Blue Yonder's KPIs
Reference: Blue Yonder’s KPIs Connect Completed acquisition of One Network Enterprises, Inc. in August 2024, consolidation from FY3/25 2Q Sales / Adjusted OP (stand alone) Recurring / SaaS sales ratio ◼ Steady growth of SaaS: Adjusted OP continues to be positive, ◼ SaaS ratio reached 50% due to incr
Slide 35: Reference: FY3/25 Forecast of Blue Yonder
Reference: FY3/25 Forecast of Blue Yonder Connect Adjusted OP (stand alone) excluding investments increased by 6.2 bil. yen for FY3/25 1H and expected to increase by 13.3 bil. yen for the full-year (Excluding costs related to acquisition of One Network Enterprises, Inc. in August 2024) Breakdown of
Slide 36: FY3/25 2Q Segment Information: Industry
Reference: FY3/25 2Q 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), despite (yen: billions) FY3/25 2Q (year-on-year) Products*1 decreased sales of industrial-use rel
Slide 37: Voluntarily Disclosed Businesses: Electronic Devices
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 2Q) Industry ◼ Continuing favorable sales of capacitors for generative AI servers and ICT terminals Electronic ◼ Sales decreased both QoQ and YoY for industrial-use relays and automotive-use relays/capacitors Devices due to market slow
Slide 38: Electronic Devices: BB ratio of capacitors
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 2Q) Industry Electronic Devices: BB ratio* of capacitors *BB ratio: book-to-bill ratio Orders in capacitors for generative AI servers and ICT terminal-use continued to increase (100 million yen) Sales Order received 700 Order backlog 6
Slide 39: Voluntarily Disclosed Businesses: FA Solutions
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 2Q) Industry * 3C: Consumer, Computer, Communication ◼ Sales decreased QoQ due to seasonal fluctuation for 3C*-related market in China ◼ YoY: Maintain profitability with fixed-cost reduction and rationalization efforts, despite decreas
Slide 40: Voluntarily Disclosed Businesses: Electronic Materials
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 2Q) Industry ◼ Growth in sales composition ratio for ICT infrastructure area due to continuing favorable sales of multi-layer circuit board materials for generative AI servers Electronic ◼ Automotive area: Currently facing a slower pac
Slide 41: FY3/25 2Q Segment Information: Energy
Reference: FY3/25 2Q Segment Information Energy Overview Sales: Decreased due to decreased sales in In-vehicle with decreased demand at Japan factory and price revisions reflecting lower raw material prices, (yen: billions) FY3/25 2Q YoY (year-on-year) despite increased sales in Industrial / Consume
Slide 42: Reference: FY3/25 2Q Operating Profit & Net Profit
Reference: FY3/25 2Q Operating Profit & Net Profit (yen: billions) YoY FY3/25 2Q FY3/24 2Q (year-on-year) Operating profit 132.2 102.4 +29.8 Non-operating income/loss 14.1 13.2 +0.9 Profit before income taxes 146.3 115.6 +30.7 Income taxes -23.6 -24.1 +0.5 Net profit 122.7 91.5 +31.2 Net profit attr
Slide 43: Reference: Medium-term Management Indicators: KGI
Reference: Medium-term Management Indicators: KGI (yen: billions) Cumulative Operating CF ROIC Reference: (FY3/23-FY3/25) (FY3/25) 2-year cumulative Initial Target Forecast results Initial Target Forecast (as of 2022) (as of Oct. 2024) (FY3/23 - FY3/24) (as of 2022) (as of Oct. 2024) 10.0% Lifestyle
Slide 44: 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