Panasonic Holdings Corporation · TSE:6752
Panasonic — Investor Day (November 2024)
17 slides from Panasonic's investor day presentation, Nov 27, 2024
Slide 1: Progress in Medium- to Long-term Strategy
Progress in Medium- to Long-term Strategy Eiichi Katayama, President Heating & Ventilation A/C Company November 27, 2024 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. P
Slide 2: Business Overview
I. Progress review for the current medium-term plan Business Overview A mixture of businesses areas with high competition (major players) and with less competition High competition areas: Approx. 70% Residential air conditioners (RAC) Commercial air conditioners (CAC) A2W Packaged air conditioners V
Slide 3: KGI Review
I. Progress review for the current medium-term plan KGI Review We have achieved top-line growth, but profitability has decreased (profit margin is 4% points short vs. original plan and vs. pre-establishment of HVAC) Comparison of the originally planned levels and the current levels under the current
Slide 4: Our Current Position (as of FY3/25)
I. Progress review for the current medium-term plan Our Current Position (as of FY3/25) Outlook: sluggish short-term performance due to A2W business slowdown A decrease of four percentage points in adjusted operating profit (from the previous level) Forecast of adjusted operating profit in FY3/25 ➢
Slide 5: Issues to Overcome for Profitability Improvement
I. Progress review for the current medium-term plan Issues to Overcome for Profitability Improvement Strong topline growth and effective allocation are the key Issues identified through comparison with competitors (top-line) Issues with our asset allocation (fixed costs) The industry's market size b
Slide 6: Organization Structure for Implementing the Competition Strategies
I. Progress review for the current medium-term plan Organization Structure for Implementing the Competition Strategies Focusing on each region was a correct direction, but we were unable to implement due to lack of capabilities Main points of the business operation system reform Issues with the curr
Slide 7: Key Strategies in the Next Medium-term Plan
II. Direction of the next medium-term plan Key Strategies in the Next Medium-term Plan Clearly define the position of our business strategies and implement them with our position in the industry in mind. Differentiation strategy Global strategy Customer strategy True globalization of Building up bus
Slide 8: A2W Business
II. Direction of the next medium-term plan A2W Business Create demand as soon as possible to expedite profitability recovery with greater probability. Assumptions for the outlook of the A2W market size Profit outlook for the A2W business ➢ Increased demand in FY3/23 due to high gas prices and govern
Slide 9: IAQ (+ Water) Business
II. Direction of the next medium-term plan IAQ (+ Water) Business Re-establish global presence as the core business in the differentiation strategy. IAQ market and our position Regional strategies to prioritize in the next medium term ◼ Global market growth rate ◼ Largest share in the global Leverag
Slide 10: RAC Business and CAC Business
II. Direction of the next medium-term plan RAC Business and CAC Business Connect the world through development, manufacturing, and sales operations to achieve appropriate profit contributions as fundamental businesses. RAC and CAC markets, and our position Regional strategies to prioritize in the ne
Slide 11: Engineering and Device Businesses
II. Direction of the next medium-term plan Engineering and Device Businesses Capture potential of growth areas by leveraging our expertise with air and with water Key areas for the environmental systems & engineering business Key areas for the device business Promote the business in domestic and ove
Slide 12: Framework for Profitability Improvement
III. Vision of Heating & Ventilation A/C Company Framework for Profitability Improvement ROIC below WACC is unacceptable. Overcome the situation as soon as possible. Drivers for improving the operating profit ratio to achieve Each business domain's target contribution to the ROIC target of 7% profit
Slide 13: Future Course of Action
III. Vision of Heating & Ventilation A/C Company Future Course of Action Enhance profitability through the coordination of customers, production, technology, and the six businesses. Focus, Digital, Design, and Software Alliances will be the lines of competition. ＣＣＳ IAQ Competitive environment ・ Ref
Slide 14: Key Initiatives for A2W in North America
III. Vision of Heating & Ventilation A/C Company Key Initiatives for A2W in North America Enter the heat-pump hot-water supply and space heating equipment business in the increasingly decarbonizing North American market. Market environment in North America Business scheme Expansion of decarbonizatio
Slide 15: Executive Summary
III. Vision of Heating & Ventilation A/C Company Executive Summary For achieving the profitability required in the air conditioning-related industries ~ In the next medium-term plan, Focus, Digital, Design, and Software Alliances will be the lines of competition ~ ✓ Under the current medium-term pla
Slide 16: Panasonic Corporation
Panasonic Corporation 15/14
Slide 17: 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 press release do not relate to historical or current facts