Copyright (C) 2017 Panasonic Corporation All Rights Reserved. May 11, 2017 Panasonic Corporation Fiscal 2017 Financial Results Fiscal 2018 Financial Forecast Notes: 1. This is an English translation from the original presentation in Japanese. 2. In this presentation, “Fiscal 2017" or "FY17" refers to the year ended March 31, 2017. In addition, “Fiscal 2018” or “FY18” refer to the year ending March 31, 2018. Fiscal 2017 Financial Results / Fiscal 2018 Financial Forecast 1 Contents 1. FY17 Financial Results
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Copyright (C) 2017 Panasonic Corporation All Rights Reserved.
May 11, 2017
Panasonic Corporation
Fiscal 2017 Financial Results
Fiscal 2018 Financial Forecast
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “Fiscal 2017" or "FY17" refers to the year ended March 31, 2017.
In addition, “Fiscal 2018” or “FY18” refer to the year ending March 31, 2018.
Sales Sales increase mainly in further increase in Japanese market share and home appliances in Asia, China and India is expected to lead sales expansion.
OP
OP is expected to increase from last year due to the shift to high value-added home appliances and acceleration of B2B profitability strengthening despite the risk factors such as raw materials price hikes.
Air-Conditioner
Tries to achieve significant growth of both sales and profit through promoting “healthy air conditioning” values by “Nanoe X” and strengthening sales channels specialized for air conditioning.
Commercial Refrigeration
& Food Equipment
Achieves sales and profit growth by offering high value-added proposals in Japan and developing new overseas customers through the synergy between Panasonic and Hussmann.
Small & Built-in
Appliance
Tries to achieve sales growth and maintaining profitability in Japan and investing overseas aggressively.
Major Appliance
Shifts resources to highly growing region, Asia, China and India. Achieves sales and profit growth through strengthening premium products fit for each region.
AVC Keeps positive profit by premium products fit for each region / country in addition to downsizing the management structure.
<Sales and OP>
* Real terms excluding effect of exchange rates
<Sales analysis by business> (yen: billions)
Air-Conditioner
CR&FE
Small & Built-in
Appliance Major Appliance
AVC
Devices, Others
<Strategy by business>
<Summary> <Sales breakdown>
2,697.2
2,750.0
Air-
Conditioner
Commercial
Refrigeration
& Food
Equipment
Small &
Built-in
Appliance
Major
Appliance
Effect of
exchange
rates
AVC
Devices,
Others
FY18(e) FY17
Segment
Information
(yen: billions)
Copyright (C) 2017 Panasonic Corporation All Rights Reserved.
Sales Overall sales are expected to increase mainly due to the results of the new consolidation in the mobile solutions business and increased sales by PSSJ*.
OP
OP is expected to increase mainly due to the major projects achieved by PSSJ* and the effect of the new consolidation, although OP decrease excluding the recovery from the negative impact of the Kumamoto earthquake and allowance last year.
Avionics Develops the next generation IFE system and strengthens the global communication service business.
Process Automation
Facing the manufacturing industry, shifts from selling electronic component mounting equipment on a stand-alone basis to offering proposals and services for whole factory improvement.
Media Entertainment
Strengthens the solutions business focusing on the entertainment industry in the US.
Mobile Solutions
Increases sales in Japan, the US, and Europe, and expands the logistics solutions business in Europe centered on newly acquired Zetes.
PSSJ Expands sales in business areas for public, retail & logistics and others, reaps demand related to the 2020 Tokyo Olympics Games, and expands the service business.
<Sales and OP>
* Real terms excluding effect of exchange rates
(yen: billions)
<Strategy by business>
FY17
Segment
Information Connected Solutions
* Panasonic System Solutions Japan Co., Ltd.
PSSJ Avionics
Media
Enter-
tainment
Mobile
Solutions
Process
Automation
Others
1,103.0
1,051.2 Media
Entertainment
Avionics Process
Automation
PSSJ
Mobile
Solutions
Others
Effect of
exchange
rates
(yen: billions) <Summary> <Sales breakdown>
<Sales analysis by business>
FY18(e)
Copyright (C) 2017 Panasonic Corporation All Rights Reserved.
Sales are expected to increase through the contribution of growing sales in the batteries, systems, and devices businesses for automotive and the new consolidation of Ficosa.
OP
OP is expected to increase in all three businesses due to expanded sales for the automotive and industrial markets although overall OP is expected to stay at the same level as last year.
Automotive Aims to realize the synergy with newly consolidated Ficosa and to grow businesses focusing mainly on IVI* and ADAS**
Energy Plans to expand sales and profits by enhancing the production capacity and sales of automotive lithium-ion batteries
Industrial Plans to improve profitability by expanding the sales of devices for automotive and industrial use
<Sales and OP>
* Real terms excluding effect of exchange rates
(yen: billions) <Strategy by business>
Segment
Information Automotive & Industrial Systems
* IVI: In-Vehicle Infotainment System ** ADAS: Advanced Driver Assistance System
Automotive Infotainment Systems 515.5 +9.2 27.0 +2.4
Rechargeable Battery 471.5 +108.9 6.6 +1.9
PanaHome 370.0 +10.4 12.7 +1.3
TV 304.9 -2.2 3.2 -1.4
FY18 TV and Six Large-Scale BDs (yen: billions)
*
**
*
* Including sales division (production & sales consolidated)
** Rechargeable Battery BD + Tesla BU
Segment
Information
Copyright (C) 2017 Panasonic Corporation All Rights Reserved.
Disclaimer Regarding Forward-Looking Statements This presentation includes forward-looking statements (that include those within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended) about Panasonic and its Group companies (the Panasonic Group). To the extent that statements in this presentation do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Panasonic Group in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the Panasonic Group's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Panasonic undertakes no obligation to publicly update any forward-looking statements after the date of this presentation. Furthermore, figures in the presentation, at the time of the disclosure, are under the audit procedure based on Financial Instruments and Exchange Act. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings under the Financial Instrument and Exchange Act of Japan (the FIEA) and other publicly disclosed documents.
The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularly consumer spending and corporate capital expenditures in the Americas, Europe, Japan, China and other Asian countries; volatility in demand for electronic equipment and components from business and industrial customers, as well as consumers in many product and geographical markets; the possibility that excessive currency rate fluctuations of the U.S. dollar, the euro, the Chinese yuan and other currencies against the yen may adversely affect costs and prices of Panasonic’s products and services and certain other transactions that are denominated in these foreign currencies; the possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; the poss ibility of the Panasonic Group not being able to respond to rapid technological changes and changing consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive in terms of both price and technology; the possibility of not achieving expected results or incurring unexpected losses in connection with the alliances or mergers and acquisitions; the possibility of not being able to achieve its business objectives through joint ventures and other collaborative agreements with other companies, including due to the pressure of price reduction exceeding that which can be achieved by its effort and decrease in demand for products from business partners which Panasonic highly depends on in BtoB business areas; the possibility of the Panasonic Group not being able to maintain competitive strength in many product and geographical areas; the possibility of incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility that the Panasonic Group may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other countries over trade, manufacturing, labor and operations; fluctuations in market prices of securities and other financial assets in which the Panasonic Group has holdings or changes in valuation of non-financial assets, including property, plant and equipment, goodwill and deferred tax assets; future changes or revisions to accounting policies or accounting rules; the possibility of incurring expenses resulting from a leakage of customers’ or confidential information from Panasonic Group systems due to unauthorized access or a detection of vulnerability of network-connected products of the Panasonic Group; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout the world, disruption of supply chain and other events that may negatively impact business activities of the Panasonic Group. The factors listed above are not all-inclusive and further information is contained in the most recent English translated version of Panasonic’s securities reports under the FIEA and any other documents which are disclosed on its website.
Copyright (C) 2017 Panasonic Corporation All Rights Reserved.
FY17 vs. FY16
Adjusted operating profit 343.6 -69.6
Other income/loss -66.8 +116.1
Operating profit 276.8 +46.5
Non-operating income/loss -1.7 +1.1
Profit before income taxes 275.1 +47.6
Income taxes 102.7 +66.4
Net profit 172.4 -18.8
Less net profit attributable to non-controlling interests 23.0 -3.0
Net profit attributable to Panasonic Corporation stockholders 149.4 -15.8