Panasonic Holdings Corporation · TSE:6752
Panasonic — Q3 2025 Earnings Presentation
45 slides from Panasonic's earnings presentation, Feb 4, 2025
Slide 1: Fiscal 2025 Third Quarter Financial Results
Fiscal 2025 Third Quarter Financial Results February 4, 2025 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 3Q Financial Results
Summary of FY3/25 3Q Financial Results As a result of the share transfer of Panasonic Automotive Systems Co., Ltd. (PAS) in Dec. 2024, PAS became a company under the equity method and is excluded from the scope of consolidation. Accordingly, figures of businesses not subject to the transfer are reco
Slide 3: Fiscal 2025 Full-Year Financial Forecast
Fiscal 2025 Third Quarter Financial Results Fiscal 2025 Full-Year Financial Forecast
Slide 4: FY3/25 3Q Financial Results
FY3/25 3Q Financial Results (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures YoY FY3/25 3Q Excl. Automotive*5 FY3/24 3Q Excl. Automotive*5 (year-on-year) Excl. Automotive*5 99% -28.3 105% +85.2 Sales 2,152.6 1,973.9 2,180.9 1,888.7 (97%)*4 (-57.
Slide 5: FY3/25 3Q Results by Segment
FY3/25 3Q Results by Segment YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other (yen: billions) Sales YoY OP YoY income/ YoY OP YoY EBITDA*1 YoY (excl. FX) (%) (%) (%) loss 103% 45.6 46.2 77.0 Lifestyle 918.6 +8.8 0.6 +2.4 +11.2 +14.2 (102%) 5.0% 5
Slide 6: FY3/25 3Q Sales Analysis by Segment
FY3/25 3Q Sales Analysis by Segment Decreased due to deconsolidation of Automotive; Increased excluding Automotive, with increased sales (Lifestyle, Connect, Industry) (yen: billions) Industrial / Price revisions for lower raw materials: -23.6 Consumer, Automotive- others related +20.5 +0.4 In-vehic
Slide 7: FY3/25 3Q Operating Profit Analysis by Segment
FY3/25 3Q Operating Profit Analysis by Segment Adjusted OP increased: Increased profit (Lifestyle, Connect, Industry, Energy), despite deconsolidation impact of Automotive Share transfer related expenses: -27.6 (yen: billions) (Automotive) +9.4 +14.7 +2.9 +2.6 Industrial / -3.5 127.5 +8.8 Industry I
Slide 8: Lifestyle Segment: FY3/25 3Q Results by Divisional Company
Lifestyle Segment: FY3/25 3Q 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% 17.6 18.8 25.7 Sol
Slide 9: FY3/25 3Q Operating Profit Analysis (by Factor)
FY3/25 3Q Operating Profit Analysis (by Factor) Increased due to sales increase in real terms, rationalization, etc., despite deconsolidation impact of Automotive, increased fixed costs, etc. Effect of Price revisions, exchange Share transfer related expenses: -27.6 Sales Blue Yonder rates (Automoti
Slide 10: FY3/25 Nine-Month Cash Flows and Cash Positions
FY3/25 Nine-Month (Apr. - Dec.) Cash Flows and Cash Positions ✓ Operating CF increased YoY, including monetization of IRA tax credit through “Transferable” method in 2Q ✓ Achieved medium-term (FY3/23 - FY3/25) target for cumulative operating CF of 2 tr. yen in 3Q; continue to generate further operat
Slide 11: Fiscal 2025 Full-Year Financial Forecast
Fiscal 2025 Third Quarter Financial Results Fiscal 2025 Full-Year Financial Forecast
Slide 12: FY3/25 Full-Year Forecast Revision
FY3/25 Full-Year Forecast Revision YoY % figures represent the year-on-year change relative to the previous year's figures FY3/25 (e) FY3/25 (e) (yen: billions) Excl. Revised amount FY3/24 Excl. YoY Excl. Automotive*5 (Feb. 4, 2025) Automotive*5 (Oct. 31, 2024) Automotive*5 Sales 8,300.0 7,626.8 8,6
Slide 13: FY3/25 Full-Year Forecast Revision by Segment
FY3/25 Full-Year Forecast Revision by Segment (Changes from forecast as of Oct. 31, 2024) YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other (yen: billions) Revised Revised Revised OP Revised EBITDA*1 Revised Sales YoY amount OP YoY amount income/
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. previous forecast as of Oct. 31, 2024) Sales Other/ (yen: billions) Lifestyle Both sales and profit remain unchanged Eliminations & adjustments Sales revised upward, profit unchanged +246.0 Automotive • Sales: Curr
Slide 15: Lifestyle Segment: FY3/25 Forecast by Divisional Company
Reference: Lifestyle Segment: FY3/25 Forecast by Divisional Company (Unchanged from forecast as of Oct. 31, 2024) (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other OP EBITDA*2 Sales YoY OP YoY income/ YoY (% to YoY YoY (% to sales)
Slide 16: FY3/25 Full-year Adjusted Operating Profit Forecast Analysis (by Factor)
FY3/25 Full-year Adjusted Operating Profit Forecast Analysis (by Factor) Sales Price hikes Price revisions, Effect of increase/ Fixed in raw rationalization, (yen: billions) decrease in materials & Blue Yonder exchange cost etc. Automotive Adjusted OP real terms logistics rates +98.1 Refer to P42 +1
Slide 17: Business Growth related to Generative AI
Business Growth related to Generative AI Reference: Briefings on Generative AI-related Businesses (Nov. 27, 2024) Links to: Presentation materials and Minutes (Previously disclosed) ✓ Generative AI-related businesses continued to be favorable in 3Q ✓ High growth expected to continue for the full yea
Slide 18: Shareholder Return
Shareholder Return ✓ Annual dividend forecast at 40 yen per share; year-on-year increase by 5 yen ✓ Unchanged from the announcement on August 30, 2024 Year-end dividend Annual divided (Forecast) (Forecast) Dividend 20 yen 40 yen Payout ratio (e) (Increased by 2.5 yen) (Increased by 5 yen) 30% • Dist
Slide 19: Panasonic Group
Panasonic Group
Slide 20: 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 presentation do not relate to historical or current facts,
Slide 21: FY3/25 Nine-Month (Apr. - Dec.) Results
Reference: FY3/25 Nine-Month (Apr. - Dec.) Results (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures YoY FY3/25 9M FY3/24 9M (year-on-year) Excl. Automotive*5 Excl. Automotive*5 Excl. Automotive*5 102% +103.6 104% +239.1 Sales 6,403.9 5,730.7 6,3
Slide 22: FY3/25 Nine-Month Operating Profit Analysis (by Factor)
Reference: FY3/25 Nine-Month (Apr. - Dec.) Operating Profit Analysis (by Factor) Increased due to sales increase in real terms, rationalization, etc., despite deconsolidation impact of Automotive, increased fixed costs, etc. Share transfer related expenses: -29.5 Sales Price Effect of revisions, (Au
Slide 23: FY3/25 Financial Results/Forecast (3Q/4Q/2H)
Reference: FY3/25 Financial Results/Forecast (3Q/4Q/2H) (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures 3Q Excl. YoY Excl 4Q (e) Excl. YoY Excl. 2H (e) Excl. YoY Excl. results Automotive*4 Automotive*4 Automotive*4 Automotive*4 Automotive*4 Aut
Slide 24: FY3/25 Financial Results/Forecast by Segment (3Q/4Q/2H)
Reference: FY3/25 Financial Results/Forecast by Segment（3Q/4Q/2H) YoY % figures represent the year-on-year change relative to the previous year's figures 3Q 4Q (e) 2H (e) Adjusted Adjusted Adjusted (yen: billions) Sales YoY OP YoY Sales YoY OP YoY Sales YoY OP YoY (% to sales) (% to sales) (% to sal
Slide 25: Lifestyle Segment: Results/Forecast by Divisional Company (3Q/4Q/2H)
Reference: Lifestyle Segment: FY3/25 Financial Results/Forecast by Divisional Company (3Q/4Q/2H) (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures 3Q 4Q (e) 2H (e) Adjusted Adjusted Adjusted Sales YoY OP YoY Sales YoY OP YoY Sales YoY OP YoY (% t
Slide 26: Impact of US IRA Tax Credit (Section 45X) on Financial Results
Reference: Impact of US IRA Tax Credit (Section 45X) 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,
Slide 27: 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 eligible for “battery cell ($35/kWh)” and “electrode active material (10% of production costs)” in Section 45X. ✓ Final
Slide 28: 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 29: Eligible EV Battery Factories for tax credit of US IRA Section 45X
Reference: Eligible EV Battery Factories for tax credit of US IRA Section 45X IRA tax credit effective at: - Nevada Factory (in operation): from launch of IRA - New Kansas Factory: upon start of sales IRA tax credit amount Annual production Production costs of Factories Credit effective from electro
Slide 30: 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 operation in FY3/25 4Q) Our Advantages ✓ Strong customer base built in North America ✓ Panasonic’s battery components and critical minerals are FEOC*-compliant
Slide 31: 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 32: FY3/25 3Q Segment Information: Lifestyle
Reference: FY3/25 3Q Segment Information Lifestyle Sales: Increased overall due to increased sales in HVAC, electrical construction Overview materials and consumer electronics (e.g. Japan, Asia, Europe); sales of (yen: billions) FY3/25 3Q YoY (year-on-year) A2W in Europe turned to an increase due ma
Slide 33: FY3/25 3Q Segment Information: Connect
Reference: FY3/25 3Q Segment Information Connect Overview Sales: Increased with Process Automation (captured demand for ICT industry in (yen: billions) FY3/25 3Q YoY (year-on-year) China), as well as Blue Yonder, Gemba Solutions and Avionics 109% Sales 327.0 (107%)*1 (yen: billions) +6.4 327.0 Media
Slide 34: 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 sales; growth of adjusted OP despite ◼ SaaS ratio maintained above 50% due
Slide 35: FY3/25 Forecast of Blue Yonder
Reference: FY3/25 Forecast of Blue Yonder Connect ✓ Adjusted OP (stand alone) excluding investments increased by 13.1 bil. yen for FY3/25 nine-month (Apr.-Dec.) and expected to increase by 13.3 bil. yen for the full-year ✓ Strategic investment brought forward to strengthen security measures Breakdow
Slide 36: FY3/25 3Q Segment Information: Industry
Reference: FY3/25 3Q Segment Information Industry Overview Sales: Increased sales of products (capacitors, multi-layer circuit board YoY PID materials) for information & communication applications such as (yen: billions) FY3/25 3Q generative AI servers, despite decreased sales of automotive/industri
Slide 37: Voluntarily Disclosed Businesses: Electronic Devices
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 3Q) Industry ■Favorable sales of capacitors for information & communication-related applications (e.g. generative AI servers, peripheral products) Electronic ■Sales decreased both QoQ and YoY for automotive-use and industrial-use relay
Slide 38: Electronic Devices: BB ratio of capacitors
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 3Q) Industry Electronic Devices: BB ratio of capacitors The order received was below sales due mainly to seasonality and decreased demand for automotive-use; orders in conductive polymer capacitors for generative AI servers have been i
Slide 39: Voluntarily Disclosed Businesses: FA Solutions
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 3Q) Industry * 3C: Consumer, Computer, Communication ◼ QoQ: Sales decreased due to seasonal fluctuation for 3C*-related market in China FA ◼ YoY: Sales increased due to steady sales in China- and Taiwan-markets; profit increased with S
Slide 40: Voluntarily Disclosed Businesses: Electronic Materials
Reference: Situation of Voluntarily Disclosed Businesses (FY3/25 3Q) Industry ◼ Sales growth in ICT infrastructure area due to continuing favorable sales for generative AI Electronic servers as well as growing demand for general-purpose servers and peripheral devices Materials ◼ Efforts in rationali
Slide 41: FY3/25 3Q Segment Information: Energy
Reference: FY3/25 3Q Segment Information Energy Sales: Overview In-vehicle: Decreased with price revisions reflecting lower material prices, despite (yen: billions) FY3/25 3Q YoY (year-on-year) increased production at North America factory Industrial / Consumer: Increased mainly with favorable sales
Slide 42: FY3/25 3Q Operating Profit & Net Profit
Reference: FY3/25 3Q Operating Profit & Net Profit (yen: billions) YoY FY3/25 3Q FY3/24 3Q (year-on-year) Operating profit 132.3 127.5 +4.8 Non-operating income/loss 12.4 17.0 -4.6 Profit before income taxes 144.7 144.5 +0.2 Income taxes -34.8 -28.3 -6.5 Net profit 109.9 116.2 -6.3 Net profit attrib
Slide 43: FY3/25 Full-year Adjusted Operating Profit Forecast of Automotive
Reference: FY3/25 Full-year Adjusted Operating Profit Forecast of Automotive Deconsolidation FY3/25 FY3/24 Year-on-year Impact Forecast Results Difference Forecast (as of May 2024) Not factored in 43.0 bil. yen 41.2 bil. yen +1.8 bil. yen Forecast (as of Feb. 2025) Factored in* 24.5 bil. yen 38.5 bi
Slide 44: 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 Forecast results Forecast Initial Target (FY3/23 - FY3/24) Initial Target (as of Feb. 2025) (as of Feb. 2025) 10.0% Lifestyle 660.0 516.0 300.3 6.0%
Slide 45: 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) (For underlined businesses, Adjusted OP also disclosed in Supplemental Financial Data) Living Appliances and • Kitchen Appliances : Kitchen A