Slide 1: FY2016 business policy
This presentation contains FY2016 business policy. Copyright (C) 2015 Panasonic Corporation All Rights Reserved.
Slide 2: What we have done in FY2015
First, I will talk about what we have done in FY2015. Copyright (C) 2015 Panasonic Corporation All Rights Reserved. 1
Slide 3: FY2015 forecast against CV2015 targets
This slide shows FY2015 forecast. Out of three numeric targets in CV2015, our mid‐term management plan, we expect to accomplish 350 billion yen operating profit and cumulative 600 billion yen FCF one year ahead of our schedule and plan to achieve 5% operating profit margin in next fiscal year. Cop
Slide 4: Business restructuring in seven challenging businesses
We have done a major part of our business restructuring in seven challenging businesses. Some businesses are still in red but we have shaped directions of their strategy and believe the business restructuring is mostly completed. Copyright (C) 2015 Panasonic Corporation All Rights Reserved. 3
Slide 5: FY2016 business strategy
Next, I will talk about FY2016 business strategy. Copyright (C) 2015 Panasonic Corporation All Rights Reserved. 4
Slide 6: FY2016 policy: profitability and sales expansion
In FY2016, we will: 1) further improve profitability to achieve 5% operating profit margin in our CV2015 target, 2) generate profit by sales expansion. We will further invest for growth. Copyright (C) 2015 Panasonic Corporation All Rights Reserved. 5
Slide 7: FY2016 financial targets
The slide shows FY2016 financial target. Sales: 8 trillion yen, +250 billion yen vs FY2015. The sales will increase even excluding effect of FX fluctuation. Operating profit: 430 billion yen, +80 billion yen vs FY2015 Operating profit margin: 5.4% Copyright (C) 2015 Panasonic Corporation All Right
Slide 8: Focus on six business divisions
We will focus on improvement in these six BDs to achieve 8 trillion yen sales and 430 billion yen operating profit. Since each of them has quite large sales with more than 300 billion yen, improving their profitability will lead to a corporate‐wide profit enlargement. Their average profitabili
Slide 9: Operating profit improvement
This slide shows how we will improve operating profit. We expanded operating profit by restructuring and fixed cost reduction for the past two years, and the sales will drive earnings growth mainly in the six business divisions from FY2016 onward. Copyright (C) 2015 Panasonic Corporation All Right
Slide 10: Sales target of 10 trillion yen in FY2019
We set our sales target of 10 trillion yen in FY2019. This slide shows how we are going to progress towards this target: 8.4 trillion yen in FY2017 and 9.1 trillion yen in FY2018. We believe making constant progress is imperative to accomplish 10 trillion yen sales target. We will steadily move
Slide 11: Housing business growth strategy
In housing business, we are very unique in the industry who has all the business of appliance, equipment and housing. Therefore, we integrate our skill and knowledge to offer ‘value of new lifestyle’ to customers and expand whole housing business. Housing equipment, services in Japan: we will ac
Slide 12: Age-free and remodeling businesses
I will go into more detail on ‘Age‐free’ (elderly care) and remodeling businesses. ‘Age‐free’ (elderly care) business is the area where we can make the best use of our skill and knowledge by selling nursing care products and offering elderly care services to support their day‐to‐day life. We opene
Slide 13: Automotive business orders and targets
In automotive business, we have already confirmed receiving 70% of orders towards 2.1 trillion yen sales target in FY2019. Adding promising orders and discontinuous measures, we intend to achieve 2.1 trillion yen sales. We will accelerate receiving orders in all areas: comfort, safety and enviro
Slide 14: Consumer electronics in strategic regions
In strategic regions, we will expand business in consumer electronics towards FY2019. We will establish AP Asia and AP China, as regional companies in April 2015 to accelerate localized marketing including products and services in each country. These two companies will be more responsible for R&D,
Slide 15: FY2019 sales target by business and region
This chart shows 10 trillion yen sales target in FY2019 broken into 5 businesses and 3 regions. We need investment to achieve the red portion in each bar which indicates an increase vs FY2015. We will concentrate our personnel, material and financial resources on six highlighted business areas. Co
Slide 16: B2B Solutions in the U.S. market
We believe the U.S. market is promising in B2B Solutions, where many companies globally do their business. We have not taken advantage of the market yet to boost sales. Therefore, we decided that a newly appointed president of AVC Networks Company which is a core Divisional Company for our B2B sol
Slide 17: 1 trillion yen growth investment plan
We plan to spend 1 trillion yen in total besides our regular capex to achieve 10 trillion yen sales target. This includes M&As to achieve discontinuous growth, and advertising and R&D expenses to accelerate growth, focusing on six highlighted area on the previous page. In FY2016, we expect to sp
Slide 18: Thank you
Thank you for your continuous cooperation. Copyright (C) 2015 Panasonic Corporation All Rights Reserved. 17
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Slide 20: Copyright (C) 2015 Panasonic Corporation All Rights Reserved.
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