Panasonic Holdings Corporation · TSE:6752
Panasonic — Q2 2023 Earnings Presentation
36 slides from Panasonic's earnings presentation, Oct 31, 2022
Slide 1: Fiscal 2023 Second Quarter Financial Results
Fiscal 2023 Second Quarter Financial Results October 31, 2022 Panasonic Holdings Corporation Notes: 1. This is an English translation from the original presentation in Japanese. 2. In this presentation, “Fiscal 2023” or “FY23” refers to the year ending March 31, 2023.
Slide 2: Summary of FY23 2Q Financial Results
Summary of FY23 2Q Financial Results • FY23 2Q Financial Results Overall sales increased from FY22 2Q Increased sales (e.g. Lifestyle, Automotive, Energy), Blue Yonder consolidation, and currency translation Adjusted operating profit: same level as FY22 2Q - Increased fixed costs for growth (e.g
Slide 3: Fiscal 2023 Full-Year Financial Forecast
Fiscal 2023 Second Quarter Financial Results Fiscal 2023 Full-Year Financial Forecast
Slide 4: FY23 2Q Financial Results
FY23 2Q Financial Results (yen: billions) FY23 2Q FY22 2Q Difference / vs. FY22 +20% +348.8 Sales 2,090.0 1,741.2 （+9%) *** （+152.2) *** Adjusted OP* 80.2 (3.8%) 80.3 (4.6%) ±0% -0.1 (% to sales) Other income/loss** 5.9 16.5 -10.6 Operating profit 86.1 (4.1%) 96.8 (5.6%) -11% -10.7 (% to sales) Non-
Slide 5: FY23 2Q Results by Segment
FY23 2Q Results by Segment (yen: billions) vs. FY22 Adjusted Other Sales (Excl. effect of FY22 income/ FY22 OP FY22 EBITDA* FY22 OP Difference Difference (% to sales) Difference (% to sales) Difference exchange *1 rates) (% to sales) loss Lifestyle 877.0 +18% 32.6 +2.9 2.8 +18.2 35.4 +21.1 60.8 +23.
Slide 6: FY23 2Q Sales Analysis by Segment
FY23 2Q Sales Analysis by Segment Overall sales increased: Increased sales (e.g. Lifestyle, Automotive, Energy), Blue Yonder consolidation, and currency translation 2,090.0 (yen: billions) Connect Energy Housing Automotive Entertainment & Head office/ Effect of Lifestyle Industry Eliminations, excha
Slide 7: FY23 2Q Operating Profit Analysis by Segment
FY23 2Q Operating Profit Analysis by Segment Adjusted OP: Same level as FY22, overall (Increased in Lifestyle and Automotive; decreased in Connect, Industry and Energy) (yen: billions) 96.8 Automotive Lifestyle Connect Industry 86.1 Energy Other/ Eliminations & Other adjustments income/ loss FY22 Ad
Slide 8: Lifestyle Segment: FY23 2Q Results by Divisional Company
Lifestyle Segment: FY23 2Q Results by Divisional Company (yen: billions) vs. FY22 Other *2 Adjusted (Excl. effect FY22 FY22 OP FY22 EBITDA** FY22 Sales of exchange OP Difference income/ Difference (% to sales) Difference (% to sales) Difference rates) (% to sales) loss Living Appliances and Solution
Slide 9: FY23 2Q Operating Profit Analysis (by Factor)
FY23 2Q Operating Profit Analysis (by Factor) Adjusted OP: • Same level as FY22 due mainly to increased fixed costs for growth, despite increased sales • Efforts like price revisions offset impact of raw material price hikes (yen: billions) +26.8 -25.1 96.8 -52.0 +52.8 -6.6 +4.0 -10.6 Fixed cost Sal
Slide 10: FY23 1H FCF and Cash
FY23 1H FCF and Cash • FCF: Below net profit with strategically increased inventories responding to semiconductor shortages, etc. • Inventories: Turned to a decrease in certain businesses on a quarterly basis; Further efforts to reduce inventories, mainly by revising strategic inventory level FCF Gr
Slide 11: Fiscal 2023 Full-Year Financial Forecast
Fiscal 2023 Second Quarter Financial Results Fiscal 2023 Full-Year Financial Forecast
Slide 12: FY23 Full-Year Forecast Revision
FY23 Full-Year Forecast Revision FY23 (e) FY23 (e) (Reference) (yen: billions) Difference (as of Oct 31) (as of May 11) FY22 vs. FY22 / Difference Sales +300.0 +11% (excl. effect of exchange rates) 8,200.0 7,900.0 (-200.0) 7,388.8 (+3%) +811.2 Adjusted operating profit* 340.0 380.0 -40.0 357.7 -5% -
Slide 13: FY23 Full-Year Forecast Revision by Segment
FY23 Full-Year Forecast Revision by Segment (yen: billions) Difference Adjusted Difference Difference Difference *1 Difference from OP FY22 from Other from OP from EBITDA* from income/ FY22 forecast FY22 FY22 vs. FY22 Sales forecast forecast (% to forecast (% to forecast (Difference) (as of (% to Di
Slide 14: Lifestyle Segment: FY23 Full-year Forecast Revision by Divisional Company
Lifestyle Segment: FY23 Full-year Forecast Revision by Divisional Company (yen: billions) Difference Adjusted Difference Difference Difference Difference from from Other from OP from from Sales vs. FY22 forecast OP FY22 forecast income/ FY22 forecast FY22 forecast EBITDA** FY22 forecast (% to (Diffe
Slide 15: FY23 Full-year Forecast Revision Factors by Segment
FY23 Full-year Forecast Revision Factors by Segment Major factors for revision (vs. initial forecast as of May 11) Sales: Revised upward due to currency translation Lifestyle Profit: Unchanged: Such efforts as price revisions & rationalization Sales offset Shanghai lockdown & negative impact of curr
Slide 16: FY23 Full-year Operating Profit Forecast Revision Analysis (by Factor)
FY23 Full-year Operating Profit Forecast Revision Analysis (by Factor) OP forecast revised downward: • Sales in real terms expected to decrease compared to initial forecast, and affected by temporary setbacks of Blue Yonder • Efforts like price revisions offset increased fixed costs and expanding im
Slide 17: Result Trends by Quarter (Sales and Adjusted Operating Profit)
Result Trends by Quarter (Sales and Adjusted Operating Profit) • On recovery trend after hitting bottom in 1Q affected by Shanghai lockdown, despite concerns of future slowdown in the economy • Each operating company will accelerate initiatives to enhance competitiveness based on medium- to long-ter
Slide 18: Energy (Automotive Battery): New Manufacturing Facility in Kansas, US
Energy (Automotive Battery): New Manufacturing Facility in Kansas, US • Decided construction of new manufacturing facility of automotive cylindrical lithium-ion batteries in Kansas, United States (announced on Oct. 31, 2022) Outline of new facility in Kansas Production capacity expansion target ・ Lo
Slide 19: Initiatives in Growth Areas
Initiatives in Growth Areas (Automotive Battery, Supply Chain Software, Air Quality & Air-conditioning) Focus on North America market where we can leverage strengths (high capacity) and already have a strong business foundation Achieve profit growth by expanding sale of 2170 cells and commercial
Slide 20: Announcements related to IR information in FY23
Announcements related to IR information in FY23 Announcements on initiatives based on medium- to long-term strategy after the launch of new structure Apr. 1 Group Strategy Briefing by Group CEO (Medium-term Group KGIs) Commencing preparations for potential stock exchange listing of supply chain May
Slide 21: Panasonic Group
Panasonic Group
Slide 22: 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 23: (Reference) FY23 Six-Month (Apr. - Sep.) Results
(Reference) FY23 Six-Month (Apr. - Sep.) Results (yen: billions) FY23 1H FY22 1H vs. FY22 / Difference Sales 4,063.9 3,533.6 +15% +530.3 (excl. effect of exchange rates) (+5%) Adjusted OP* 145.9 (3.6%) 199.8 (5.7%) -27% -53.9 (% to sales) Other income/loss** 3.9 1.4 - +2.5 Operating profit 149.8 (3.
Slide 24: (Reference) FY23 Financial Results/Forecast
(Reference) FY23 Financial Results/Forecast vs. FY22 vs. FY22 vs. FY22 (yen: billions) FY23 1H FY23 2H (e) Full-year (e) /Difference /Difference /Difference Sales 4,063.9 +15% +530.3 4,136.1 +7% +280.9 8,200.0 +11% +811.2 (excl. effect of exchange rates) (+5%) (+1%) (+3%) Adjusted operating 145.9 19
Slide 25: (Reference) FY23 Financial Results/Forecast by Segment
(Reference) FY23 Financial Results/Forecast by Segment (yen: billions) 1H 2H (e) Full-year (e) Adjusted Adjusted Adjusted vs. FY22 vs. FY22 vs. FY22 vs. FY22 vs. FY22 vs. FY22 Sales /Difference OP /Difference Sales /Difference OP /Difference Sales /Difference OP /Difference (% to sales) (% to sales)
Slide 26: Lifestyle Segment: FY23 Financial Results/Forecast by Divisional Company
(Reference) Lifestyle Segment: FY23 Financial Results/Forecast by Divisional Company (yen: billions) 1H 2H (e) Full-year (e) Adjusted Adjusted Adjusted vs. FY22 vs. FY22 vs. FY22 vs. FY22 vs. FY22 vs. FY22 Sales /Difference OP /Difference Sales /Difference OP /Difference Sales /Difference OP /Differ
Slide 27: (Reference) Impact from Changes in Business Environment (vs. FY22)
(Reference) Impact from Changes in Business Environment (vs. FY22) Semiconductor, parts & materials Price hikes in Changes in demand shortages raw materials & logistics • Consumer electronics (CE) in Japan: • Resin: higher crude oil prices Slightly decreased • Impact persists mainly in Electric Work
Slide 28: FY23 2Q Segment Information: Lifestyle
(Reference) FY23 2Q Segment Information Lifestyle Overview Sales increased: Growth businesses like HVAC systems in Europe vs. FY22 2Q/ (e.g. A2W), overseas electrical construction materials, showcases in (yen: billions) FY23 2Q Difference North America, recovery in consumer electronics in Japan afte
Slide 29: FY23 2Q Segment Information: Automotive
(Reference) FY23 2Q Segment Information Automotive Overview Sales increased: vs. FY22 2Q/ Recovery in automobile production, currency translation (yen: billions) FY23 2Q Difference (yen: billions) 323.0 Automotive +36% Sales 323.0 (+24%)* Electronics Others** Automotive Systems Cockpit Effect of Adj
Slide 30: FY23 2Q Segment Information: Connect
(Reference) FY23 2Q Segment Information Connect Overview Sales increased: Rugged mobile terminals for overseas markets, Avionics vs. FY22 2Q/ (market recovery in aviation industry) and Blue Yonder consolidation, (yen: billions) FY23 2Q Difference despite decreased sales of Process Automation (invest
Slide 31: (Reference) Blue Yonder's KPIs
(Reference) Blue Yonder’s KPIs Connect Revenue Recurring / SaaS ratio Recurring ratio almost unchanged, but SaaS ratio Increased from FY22 and growth continues achieved steady growth （M US$） (USD: millions） 69.0% 69.1% 68.8% 68.3% 68.4% 309 310 Recurring ratio 293 全体 全体 全体 全体 286 289 サブスク サブスク サ
Slide 32: FY23 2Q Segment Information: Industry
(Reference) FY23 2Q Segment Information Industry Overview Sales increased: Increased sales of automotive-use products and currency translation, despite decreased sales from ICT market vs. FY22 2Q/ PID (yen: billions) FY23 2Q slowdown, semiconductor shortages, and termination of Difference Products*
Slide 33: FY23 2Q Segment Information: Energy
(Reference) FY23 2Q Segment Information Energy Overview Sales increased: Currency translation and price revisions; North America automotive batteries favorable, but lower sales of (yen: billions) vs. FY22 2Q/ lithium-ion batteries for consumer application, affected by FY23 2Q Difference deterioratin
Slide 34: (Reference) FY23 2Q Operating Profit & Net Profit
(Reference) FY23 2Q Operating Profit & Net Profit (yen: billions） FY23 2Q FY22 2Q Difference Operating profit 86.1 96.8 -10.7 Non-operating income/loss 7.0 0.5 +6.5 Profit before income taxes 93.1 97.3 -4.2 Income taxes -29.7 -17.4 -12.3 Net profit 63.4 79.9 -16.5 Net profit attributable to Panasoni
Slide 35: Medium-term Management Indicators: KGI
(Reference) Medium-term Management Indicators: KGI (yen: billions） Cumulative Operating CF ROIC (FY23-25) (FY25) Lifestyle 660 10.0% or more Automotive 200 8.5% Connect 260 4.6% Industry 390 or more 20.0% Energy 330 12.0% Group Total 2,000 ROE 10% or more Note: Above data from presentation materials
Slide 36: (Reference) List of Voluntarily Disclosed Businesses in FY23
(Reference) List of Voluntarily Disclosed Businesses in FY23 Lifestyle Businesses with Sales Disclosed Major Business Divisions, etc. (Panasonic Corporation) • Kitchen Appliances : Kitchen Appliances BD Living Appliances and Solutions Company • Laundry Systems and Vacuum Cleaner : Laundry Systems an