Panasonic Holdings Corporation · TSE:6752
Panasonic — Q4 2024 Earnings Presentation
45 slides from Panasonic's earnings presentation, May 9, 2024
Slide 1: Fiscal 2024 Financial Results / Fiscal 2025 Financial Forecast
Fiscal 2024 Financial Results Fiscal 2025 Financial Forecast May 9, 2024 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 ended March 31, 2024. In addition, “Fisca
Slide 2: Summary of FY3/24 Financial Results
Summary of FY3/24 Financial Results ◼ US Inflation Reduction Act (IRA) ‧ Recorded on P/L: assumed amount equivalent to tax credit and to be effectively used with customers (unchanged) ◼ FY3/24 Financial Results: Sales and profit increased YoY (same level as Apr. 24 forecast) ‧ Overall sales: Increas
Slide 3: Impact of US IRA Tax Credit on Financial Results
Impact of US IRA Tax Credit on Financial Results (Same as FY3/24 1Q - 3Q) ✓ Among monetization methods “Deductible tax credit” “Refundable tax credit (direct pay)” & “Transferable tax credit,” assuming to elect “Refundable” for FY3/24 & FY3/25 ✓ Half of total tax credit amount recorded in adjusted O
Slide 4: Fiscal 2024 Financial Results
Fiscal 2024 Financial Results Fiscal 2025 Financial Forecast
Slide 5: FY3/24 Financial Results
FY3/24 Financial Results (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures YoY FY3/24(e) Difference FY3/24 Excl. IRA FY3/23 Excl. IRA Excl. IRA Excl. IRA (Feb 2, ’24) Excl. IRA (year-on-year) (Feb 2, ’24) tax credit tax credit tax credit tax cred
Slide 6: FY3/24 Results by Segment
FY3/24 Results by Segment (Difference from Forecast of Feb. 2, 2024) (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other YoY Difference Difference Difference OP Difference EBITDA*1 Difference Sales OP YoY income/ YoY YoY YoY (excl. F
Slide 7: FY3/24 Sales Analysis by Segment
FY3/24 Sales Analysis by Segment Overall sales increased: Increased sales (Automotive, Connect) and currency translation, despite decreased sales (Lifestyle, Industry, Energy) (yen: billions) • Sales increase in real terms: +9.1 Other/Eliminations & adjustments +281.1 8,496.4 +123.4 +29.4 -153.0 • I
Slide 8: FY3/24 Operating Profit Analysis by Segment
FY3/24 Operating Profit Analysis by Segment Adjusted OP increased: Increased profit (Lifestyle, Automotive, Connect) and IRA tax credit (Energy), despite decreased profit (Industry) IRA tax credit: +86.8 (yen: billions) +57.4 -2.4 -4.2 -3.5 361.0 +17.2 -32.1 +27.0 Industrial / Other/ Other +13.0 Con
Slide 9: Lifestyle Segment: FY3/24 Results by Divisional Company
Lifestyle Segment: FY3/24 Results by Divisional Company (Difference from Forecast of Feb. 2, 2024) (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other YoY Difference Difference Difference OP Difference EBITDA*2 Difference Sales OP Yo
Slide 10: FY3/24 Operating Profit Analysis (by Factor)
FY3/24 Operating Profit Analysis (by Factor) Adjusted OP increased: Progress in price revisions and rationalization, amount equivalent to IRA tax credit recorded as profit, etc. Effect of Other Blue Yonder exchange rates income/loss (yen: billions) IRA (BY) +21.0 -3.5 361.0 Sales +86.8 -4.5 increase
Slide 11: FY3/24 Cash Flows and Cash Positions
FY3/24 Cash Flows and Cash Positions ✓ Operating CF increased significantly year-on-year due mainly to reduced inventories ✓ Continue to steadily generate operating CF through profitability improvement and inventory reduction, etc. Cash Flows Gross cash & interest-bearing debt / Net cash (yen: billi
Slide 12: Shareholder Return: Annual Dividend (FY3/24)
Shareholder Return Annual dividend determined at 35 yen per share; year-on-year increase by 5 yen (same as forecast announced on Feb. 29) Annual Dividend 35 yen ✓ Annual dividend (FY3/23): 30 yen (FY3/24) (Increase by 5 yen) ✓ Forecast (as of Feb 29): 35 yen • Distribute stable and continuous divide
Slide 13: Fiscal 2025 Financial Forecast
Fiscal 2024 Financial Results Fiscal 2025 Financial Forecast
Slide 14: FY3/25 Forecast
FY3/25 Forecast 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 8,701.0 8,496.4 8,597.8 Excl. FX(103%) +103.6 101% +103.2 Adj
Slide 15: Changes in Demand by Segment (FY3/25 Outlook)
Positive (YoY) Changes in Demand by Segment (FY3/25 Outlook) Negative (YoY) Segment Changes in Demand ✓ HVAC: A2W in Europe continues to face tough market conditions in 1H, expected to be at same level YoY for full year; Considering European economic trends and policy situations in each country, ful
Slide 16: FY3/25 Operating Profit Analysis (by Factor)
FY3/25 Operating Profit Analysis (by Factor) Adjusted OP: Increases with sales increase & rationalization, etc. while fixed costs increases for future growth Sales increase/decrease in real terms Fixed costs Price revisions, Blue Yonder rationalization, Effect of Other (yen: billions) +100.0 -80.0 I
Slide 17: FY3/25 Forecast by Segment
FY3/25 Forecast by Segment (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other OP EBITDA*1 Sales YoY OP YoY income/ YoY YoY YoY (%) (%) (%) loss 102% 135.0 130.0 253.0 Lifestyle 3,540.0 (+83.5) +1.2 -5.0 +9.1 +10.3 +22.3 3.8% 3.7% 7.
Slide 18: FY3/25 Sales Forecast Analysis by Segment
FY3/25 Sales Forecast Analysis by Segment Sales expected to increase: Increases in Lifestyle, Connect, and Industry, etc.; decreases in Automotive and Energy ■ Including: ✓ Price revisions for lower raw materials: -60.0 • Sales -82.4 (excl. IRA tax credit impact) (FY3/24: 706.4 / FY3/25(e) 624.0) ✓
Slide 19: FY3/25 Operating Profit Forecast Analysis by Segment
FY3/25 Operating Profit Forecast Analysis by Segment Adjusted OP: Expected to increase in all business segments • Profit increase: +1.7 (excl. IRA tax credit) (FY3/24: -18.7 / FY3/25(e): -17.0） (yen: billions) • IRA tax credit: +0.2 +14.5 -12.6 +21.8 +1.9 -41.0 +31.4 Other/ In-vehicle Industrial / C
Slide 20: Energy (In-vehicle): Adjusted OP Analysis by Factor
Energy (In-vehicle): Adjusted OP Analysis by Factor ✓ While adjusted OP is expected to improve slightly year-on-year, a loss is expected to continue in FY3/25: Improved profitability at existing factories and rebound increase from expenses recorded in FY3/24, related to past manufacturing- process i
Slide 21: Lifestyle Segment: FY3/25 Forecast by Divisional Company
Lifestyle Segment: FY3/25 Forecast by Divisional Company (yen: billions) YoY % figures represent the year-on-year change relative to the previous year's figures Adjusted Other Sales YoY OP YoY income/ YoY OP YoY EBITDA*2 YoY (%) (%) (%) loss Living Appliances and Solutions Company 875.0 101% 55.0 +6
Slide 22: Initiatives in Growth Areas
Initiatives in Growth Areas Underlined: Changes/progress from February 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 found
Slide 23: Outlook of Medium-term Management Indicators: KGI
Outlook of Medium-term Management Indicators: KGI • Cumulative operating CF: Within range of achieving target • ROE & cumulative OP: Expected to fall short of target figures ■Group Strategy Briefing presentation (April 1, 2022) (yen: billions) FY3/23 520.7 FY3/24 866.9 FY3/25 (Remainder) 612.4 (amou
Slide 24: Panasonic Group
Panasonic Group
Slide 25: 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 26: 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 under construction) Our Advantages ✓ Strong customer base built in North America ✓ Panasonic’s battery components are FEOC*-compliant *FEOC: Foreign Entity of Concern If a clean
Slide 27: 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 ✓ Proposed rules for section 45X released in Decemb
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 US IRA Section 45X
Reference: Eligible EV Battery Factories for US IRA Section 45X ✓ Credit effective at: - Nevada Factory (already in operation): from launch of IRA - New Kansas Factory: upon start of production & sales (FY3/25 4Q) ✓ Wakayama Factory: expecting mass production of 4680 cells in FY3/25 2Q <Ref.> Simple
Slide 30: Reference: FY3/24 Full-year Results vs. Forecast of April 24
Reference: FY3/24 Full-year Results (vs. Forecast as of April 24, 2024) (yen: billions) FY3/24 FY3/24 Forecast Difference Results (as of April 24, 2024) Sales 8,496.4 8,500.0 -3.6 Adjusted operating profit *1 390.0 390.0 (% to sales) ±0.0 (4.6%) (4.6%) Other income/loss *2 -29.0 -30.0 +1.0 Operating
Slide 31: FY3/24 Segment Information: Lifestyle
Reference: FY3/24 Segment Information Lifestyle Overview Sales decreased overall (excluding effect of exchange rates): Aggregated sales of 4 divisional companies increased with steady sales of cold chain (yen: billions) FY3/24 YoY (year-on-year) in North America and electrical construction materials
Slide 32: FY3/24 Segment Information: Automotive
Reference: FY3/24 Segment Information Automotive Overview Sales: Increased due to gradual recovery trend in automobile production as well (yen: billions) FY3/24 YoY (year-on-year) as currency translation + 71.0 1,491.9 115% Sales 1,491.9 (110%) *1 (yen: billions) + 67.6 Adjusted operating profit 41.
Slide 33: FY3/24 Segment Information: Connect
Reference: FY3/24 Segment Information Connect Overview Sales: Increased overall due to increased sales of Avionics, Gemba Solutions and (yen: billions) FY3/24 YoY (year-on-year) Blue Yonder 107% (yen: billions) Sales 1,202.8 Others + 52.2 1,202.8 Avionics Gemba (103%) *1 Solutions + 58.0 -44.3 Media
Slide 34: Reference: Blue Yonder's KPIs
Reference: Blue Yonder’s KPIs Connect Sales / Adjusted OP (stand alone) Recurring / SaaS ratio ◼ Sales: Steady growth of both total sales and SaaS Operating profit: Increased excluding strategic investment ◼ Steady trend for both recurring and SaaS ratio （M USD） YoY Recurring ratio 310 328 324 321 3
Slide 35: Reference: FY3/25 Forecast of Blue Yonder
Reference: FY3/25 Forecast of Blue Yonder Connect • Continue to make strategic investment to establish the foundation for SaaS business in FY3/25 • Adjusted OP (stand alone) excluding strategic investment is expected to increase significantly with steady progress of investment effect in FY3/25 Break
Slide 36: FY3/24 Segment Information: Industry
Reference: FY3/24 Segment Information Industry Overview Sales: Decreased due mainly to downturn in market conditions in China, and changes in semiconductor sales channel for Electronic Devices, despite increased sales YoY PID of products for green vehicles (capacitors, relays) and products for gener
Slide 37: Voluntarily Disclosed Businesses: Electronic Devices
Reference: Situation of Voluntarily Disclosed Businesses (FY3/24) Industry Electronic Devices ◼ 4Q: While sales decreased QoQ, a recovery trend is seen in the recent BB ratio (details on next slide) ◼ FY3/24: Sales and profit decreased overall • Automotive CASE: growth in capacitors & relays for gre
Slide 38: Electronic Devices: BB ratio of capacitors
Reference: Situation of Voluntarily Disclosed Businesses (FY3/24) Industry Electronic Devices: BB ratio* of capacitors *BB ratio: book-to-bill ratio ◼ 4Q BB ratio exceeded 1: Favorable orders received for Information & Communication infrastructure and ICT terminals, despite slightly weaker orders fo
Slide 39: Voluntarily Disclosed Businesses: FA Solutions
Reference: Situation of Voluntarily Disclosed Businesses (FY3/24) Industry FA Solutions ◼ FY3/24: Sales and profit decreased Downturn in market conditions mainly in China and Asia, as well as intensifying local competition ◼ FY3/25: • Continue with profitability improvement measures (e.g. fixed cost
Slide 40: Voluntarily Disclosed Businesses: Electronic Materials
Reference: Situation of Voluntarily Disclosed Businesses (FY3/24) Industry Electronic Materials ◼ YoY increase of both sales and profit continued from FY3/24 2Q ◼ FY3/24: Sales and profit increased in Information & Communication Infrastructure due to favorable sales of multi-layer circuit board mate
Slide 41: FY3/24 Segment Information: Energy
Reference: FY3/24 Segment Information Energy Overview Sales increased excluding IRA tax credit impact • In-vehicle: favorable in North America despite decreased production in Japan (yen: billions) FY3/24 YoY (year-on-year) • Industrial / Consumer: decreased due to weak demand for consumer and power
Slide 42: Reference: FY3/24 Operating Profit & Net Profit
Reference: FY3/24 Operating Profit & Net Profit (yen: billions) YoY FY3/24 FY3/23 (year-on-year) Operating profit 361.0 288.6 +72.4 Non-operating income/loss 64.2 27.8 +36.4 Profit before income taxes 425.2 316.4 +108.8 Income taxes 40.2 -35.8 +76.0 Net profit 465.4 280.6 +184.8 Net profit attributa
Slide 43: Medium-term Management Indicators: KGI
Reference: Medium-term Management Indicators: KGI (yen: billions) Cumulative Operating CF Reference ROIC (FY3/23-FY3/25) (2-year cumulative results) (FY3/25) Current Current FY3/23 - FY3/24 Progress Rate Initial Target Forecast Initial Target Forecast Cumulative (vs current forecast) (as of May 2024
Slide 44: 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
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. (Adjusted OP disclosed for underlined businesses) Change from FY3/24 (Panasonic Corporation) Living Appliances and • Kitchen Appliances : Kitchen Appliances BD Note