Panasonic Holdings Corporation · TSE:6752
Panasonic — Panasonic Connect — Investor Day (June 2024)
26 slides from Panasonic's investor day presentation, Jun 6, 2024
Slide 1: Panasonic Connect Operating Company Strategy Briefing
Panasonic Connect Operating Company Strategy Briefing June 6, 2024 Yasuyuki Higuchi, President & CEO Panasonic Connect Co., Ltd. Notes: 1. This is an English translation of the original presentation in Japanese. 2. In this presentation, “Fiscal 2025” or “FY3/25” refers to the year ending March 31, 2
Slide 2: Corporate value enhancement realized through three reforms
Panasonic Connect’s corporate value enhancement realized through three reforms Corporate Value Enhancement 01 02 03 Business Specializing and Positioning sharpening with Cultural Reform Reform Operational Reform Introduced new executive compensation tied to corporate value (from FY3/24) ©️ Panasonic
Slide 3: Business Positioning Reform
01 02 03 Corporate Value Enhancement: Business Positioning Reform Continuously implementing selection and concentration since FY3/18 Implemented in FY3/24 FY3/25 implementation plan Introduction of external capital for the security system business Divestitures Sale of ITC Global (satellite communica
Slide 4: Specializing and Sharpening Reform
01 02 03 Corporate Value Enhancement: Specializing and Sharpening Reform Established the structure that enables us to focus management resources on highly competitive business areas Process Automation Media Entertainment Avionics Welding robot Mounting machine High-brightness projector In-flight Ent
Slide 5: Cultural Reform Initiatives to Date
01 02 03 Corporate Value Enhancement: Cultural Reform Initiatives to Date Removal of Introduction of Head office ALL HANDS Working three private rooms for Hot-desking job-based in Tokyo MEETING days a week executives approach Eradication of Quit weekly CONNECTers' Business chat Ch. Yasu seals and be
Slide 6: Progress of Connect Medium- and Long-term Strategy
Progress of Connect Medium- and Long-term Strategy
Slide 7: EBITDA Results (FY3/24)
EBITDA Results (FY3/24) EBITDA results exceeded initial plan by 3.9 billion yen driven by: Avionics, Gemba Solutions Company and Blue Yonder (billion yen) Upward revision of EBITDA FY3/24 125.0 Increase due to 13 13.0 (Full-year) 115.9 billion yen upward revision in October 2023 36 35.5 28 28.1 Init
Slide 8: Medium-term Plan Forecast (Sales and EBITDA)
Medium-term Plan Forecast (Sales and EBITDA) Aiming to achieve the medium-term plan in FY3/25 for both sales and EBITDA Sales EBITDA EBITDA 11.7% margin (billion yen) 1,240.0 1,240 9.6% 145.0* 145* 1,202.8 1,203 8.9% 115.9 116 99.9 100 1,126 1,125.7 FY3/23 FY3/24 FY3/25 FY3/23 FY3/24 FY3/25 (Medium-
Slide 9: Medium-term Plan Forecast (Operating CF and ROIC)
Medium-term Plan Forecast (Operating CF for cumulative 3 years and ROIC) Aim to achieve medium-term plan of cumulative Operating CF for 3 years (FY3/23 to FY3/25). ROIC target for FY3/25 was revised down considering Blue Yonder’s shift towards strategic investments. Operating CF (cumulative 3 years)
Slide 10: EBITDA Target for Medium-term Plan (FY3/26-FY3/28)
EBITDA Target for Medium-term Plan (FY3/26-FY3/28) Targeting 200 billion yen of EBITDA in FY3/28 as a next medium-term plan Process Automation, Media Entertainment, Avionics and Blue Yonder Mobile Solutions, and Gemba Solutions Company EBITDA EBITDA 100 billion yen Panasonic Connect 100 billion yen
Slide 11: Progress of Blue Yonder Business Strategy
Progress of Blue Yonder Business Strategy
Slide 12: Scaling of SaaS business model
Scaling of SaaS business model Sales and investment/return stages of a SaaS business Case of Company S* in the USA Sales *A SaaS provider for enterprise service management “Bil $” 8 4 Sales Cumulative 6 3 FCF 4 2 2 1 Year 0 Period 0 0 $200M strategic investment over 3-year period -2 Cumulative FCF -
Slide 13: Vision of Blue Yonder
Vision of Blue Yonder Realize an autonomous end-to-end supply chain optimization Customer companies Material procurement Production Logistics Retail/commerce Customer Optimization/Efficiency + Reducing Environmental Impact Demand Supply plan Production Inventory Sales plan Transportation Warehouse D
Slide 14: Additional Strategic Investments to achieve Blue Yonder's Vision
Additional Strategic Investments to achieve Blue Yonder’s Vision Make additional investment in strengthen the foundation to build a scalable SaaS platform Differentiate Blue yonder by advanced AI and end-to-end interoperability (1) Building a scalable SaaS (2) Advanced AI (3) End-to-end interoperabi
Slide 15: $200M Strategic Investment over the three years
$200M Strategic Investment over the three years Preparation phase for transformation in FY3/24 and now move on to the execution phase to achieve Level 4 2023 (1st year) 2024 (2nd year) 2025 (3rd year) - Building platforms for scalability R&D investment in planning / Improve maturity level of executi
Slide 16: Blue Yonder × One Network Synergies Realization
Blue Yonder × One Network Synergies Realization Plan to accelerate the realization of revenue synergies by delivering One Network solutions to Blue Yonder’s customer base and utilizing sales resource Achievable Achievable in the short term in the medium-term Solutions 1. Supply Chain network 2. One
Slide 17: Financial progression after Blue Yonder Acquisition
Financial progression after Blue Yonder Acquisition SaaS ARR has increased 1.5 times to $670 million since the acquisition Made Investments with funds generated from deferred revenue, and adjusted profit increased Sales growth Capital generation / Financial stability Improved profitability SaaS ARR
Slide 18: Medium- to long-term strategies and progress of each business division
Medium- to long-term strategies and progress of each business division
Slide 19: Avionics Medium- to Long-term Strategy
Avionics Medium- to Long-term Strategy Drive growth by revamping the next-generation product portfolio to meet market needs New Product Portfolio for Aviation Industry Trends “Engagement beyond Entertainment” Global Air Travel Demand Inflight Entertainment & (2019 = 100) Connectivity Demand 107+ • G
Slide 20: Medium- to Long-term Strategy Summary for Each Business
Medium- to Long-term Strategy Summary for Each Business Continue to increase profitability except for PABD impacted by China’s economic slowdown Medium- to Long-term Strategy FY3/25 Measures EBITDA margin • For mounting machines, providing values to • Maximize sales / profit by expanding the G serie
Slide 21: Contribute to corporate value increase of the Panasonic Group
Contribute to the corporate value increase of the entire Panasonic Group with CONNECT’s high profitable businesses siti usiness Po oning Refo B rm Enhance Business corporate value Investments growth sustainably Blue Gemba Yonder Solutions Avionics Specializing and eform Media tural R Entertainment u
Slide 22: ©️ Panasonic Connect Co., Ltd. 2024
©️ Panasonic Connect Co., Ltd. 2024 22
Slide 23: Panasonic CONNECT
a Panasonic CONNECT
Slide 24: 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 25: KGI progress
KGI progress ◼ Cumulative operating CF (FY3/23 - FY3/25): 255 billion yen or more *1 ◼ ROIC (FY3/25) : 2.6% or more KGI ◼ EBITDA (FY3/25) : 145 billion yen or more FY3/23 FY3/24 FY3/25 (yen: billions) Results Year on Year Results Year on Year Forecast Year on Year Sales 1,125.7 +203.0 1,202.8 +77.1
Slide 26: (Ref) Financial Figures (P/L, B/S, C/F)
(Ref) Financial Figures (P/L, B/S, C/F) < Not subject to audit > P/L (yen: billions) FY3/23 FY3/24 FY3/25 (Forecast) B/S FY3/25 (yen: billions) FY3/23 FY3/24 (Forecast) Sales 1,125.7 1,202.8 1,240.0 Cash and cash equivalents 328.0 364.0 ― Adjusted operating 28.2 44.9 75.0 Trade receivables 245.7 299