management policy for fiscal 2011
TRANSCRIPT
1Copyright (C) 2010 Panasonic Corporation. All Rights Reserved.
Management Policy for Fiscal 2011
January 8, 2010Panasonic Corporation
Fumio Ohtsubo
Notes: 1. This is an English translation from the original presentation in Japanese.2. In this presentation, “fiscal 2011” or “FY11” refers to the year ending
March 31, 2011.
This presentation outlines the Panasonic Group’s annual management policy for fiscal 2011.
2Copyright (C) 2010 Panasonic Corporation. All Rights Reserved.
2
1. New Panasonic Group
2. Vision Looking to the 100th Anniversary
of Our Founding in 2018
3. Growth Strategy in New Mid-term
Management Plan
OutlinesOutlines
Today, I would like to explain three points.
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3
1-1 New Panasonic Group1-1 New Panasonic Group
Strong businesses including- Solar cells- Rechargeable batteries- Industrial equipment anddevices
- Wide range of products- Cutting-edge technologies- Management infrastructures including sales platforms
Offering wider & more comprehensive solutions for life
Contributing to the progress and development of society and enriching people’s lives through manufacturing
First, I would like to explain the new Panasonic Group.
We have become the new Panasonic Group, adding SANYO as a subsidiary.
As the new Panasonic Group, we pursue our business activities under our unchangeable management philosophy, 'Contributing to the progress and development of society and enriching people’s lives through manufacturing'.
In the electronics business, Panasonic has developed a wide range of products which relates to life. SANYO, meanwhile, is a key player in the solar cells and rechargeable batteries markets and has strong businesses in industrial equipment and devices. By combining these two companies, the new Panasonic Group will have more potential in offering customers wider and more comprehensive solutions for life.
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4
1-2 Maximizing Synergy1-2 Maximizing Synergy
Reach for the bestfrom customer-oriented perspective
Reach for the bestfrom customer-oriented perspective
-Leading in environment and energy related businesses
-Development of new businesses-Learning and sharing knowledge
-Leading in environment and energy related businesses
-Development of new businesses-Learning and sharing knowledge
-Defining strengths in each company-Exiting from duplicated businesses-Reviewing all & restructuring rapidly
-Defining strengths in each company-Exiting from duplicated businesses-Reviewing all & restructuring rapidly
Growth & StrengtheningGrowth & Strengthening Duplications & ChallengesDuplications & Challenges
We aspire to maximize synergy by making use of this potential.
In terms of growth and strengthening, we aim to be the leading company in the environment and energy related businesses by learning from each other and sharing our knowledge. In addition, we will develop new business strategies for the next growth.
On the other hand, with regard to duplications and challenges, we are determined to exit from what is to be withdrawn from, and make the best use of our strengths by clarifying our strengths objectively. Once we finish reviewing all, rapid restructuring is needed.
We will make all decisions and carry out our initiatives from a customer-oriented perspective and reach for the best.
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5
2-12-1
No.1 Green Innovation Companyin the Electronics Industry
No.1 Green Innovation CompanyNo.1 Green Innovation Companyin the Electronics Industryin the Electronics Industry
Innovation focused on Innovation focused on ‘‘environmentenvironment’’in all business activitiesin all business activities
Green LifeInnovationGreen LifeInnovation
Green BusinessInnovation
Green BusinessInnovation
Vision Looking to the 100th Anniversary of Our Founding in 2018Vision Looking to the 100th Anniversary of Our Founding in 2018
I would like to explain a vision looking to the 100th anniversary of our founding, in other words, the broad management direction headingtowards 2018.
The world is going through a period of transition. In order to realize a sustainable multipolarized society, our challenge in the next five to ten years is to lead green innovation for 'individual life styles'.
With this in mind, our goal in 2018 is to become the No.1 Green Innovation Company in the Electronics Industry. The 'environment' is a key factor in all our business activities and we spur innovation to ensure there is no exception.
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6
Lifestyle with recycling-oriented products
Encouraging eco-conscious products in emerging and
developing countries
Lifestyle with virtually zero CO2emissions for the entire home
and the entire building
Evolving and expanding eco cars
Offer better living which provides people Offer better living which provides people around the world with a sense of security, around the world with a sense of security,
comfort and joy, in a sustainable waycomfort and joy, in a sustainable way
Realizing a Green LifestyleRealizing a Green Lifestyleto Enrich Peopleto Enrich People’’s Livess Lives
2-2 Green Life Innovation2-2 Green Life Innovation
Green Life InnovationGreen Life Innovation
First, we will promote 'Green Life Innovation' to improve people’s lives.
This means realizing a green lifestyle that enriches people’s lives through our ideas.
Our aim is to offer better living which provides people around the world with a sense of security, comfort and joy, in a sustainable way.
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7
Minimizing CO2 emissions in all business processes
Recycling-oriented manufacturing
Green work-style Offering eco-solution using our own expertise
Pursue Ideal Manufacturing OperationsPursue Ideal Manufacturing Operations
Zero Cost, Zero Time, Zero Inventory+ Zero Emissions
Implementing & Proposing an Optimum Implementing & Proposing an Optimum Green BusinessGreen Business--stylestyle
2-3 Green Business Innovation2-3 Green Business Innovation
Green Business InnovationGreen Business Innovation
We will promote 'Green Business Innovation' and, implement and propose an optimum green business-style.
We try to achieve the ideal manufacturing operations for ‘zero cost, zero lead time and zero inventory’. In the future, we will also aim for ‘zero emissions of CO2 and other waste'.
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8
Maximizing synergy through voluntary initiatives
and autonomous management
Individual Customer Touchpoints No.1
Maximizing life-time customer value using extended and
strong contact with customers
Synergy Creation
2-4 Goal of Group Business Management2-4 Goal of Group Business Management
Networking between self-sustaining & strong operating sites. Pursuing ‘optimization on a global basis’
Global Networking
In order to realize these business visions, we will establish a new Group management style.
First, 'Global Networking Management'. We will promote networking between self-sustaining and strong operating sites, and pursue optimization on a global basis.
Second, 'Individual Customer Touchpoints No.1 Management'. In order to offer ‘solutions for the entire home and the entire building', we will provide a wide range of products and establish new relationships by making full use of information technology. We can, in this way, maximize life-time value for individual customers.
Third, 'Synergy Creation Management'. The Panasonic Group aims to become a flexible and dynamic company, consistently promoting collaboration and creating synergies within the Group through voluntary initiatives and autonomous management.
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9
Indexes for No.1 Green Innovation Company in the Electronics IndustryIndexes for No.1 Green Innovation Company in the Electronics Industry
Be industry No.1in green indexes
Consistently exceeding global excellence indexes
・Multiple key products with No.1 global market shares
・Sales: 10 trillion yen or more・Contribution in reducingCO2 emissions
・Operating profit to sales ratio: 10% or more
・ROE: 10% or more・Contribution in
recycling resources
・Increase the size of theenergy system business
No.1
・Achieve a high sales ratio ofNo.1 eco-conscious products
2-52-5
We will aim to be industry No.1 in ‘green indexes’ and consistently exceed ‘global excellence indexes’.
With regard to the global excellence indexes, we will add 'multiple key products with No.1 global market shares' to the original three indexes- sales, operating profit to sales ratio and ROE.
In order to exceed these indexes consistently, we will continue to restructure and improve our operation in each business unit.
With regard to the green indexes, we have to take into account the following points: contribution in ‘reducing CO2 emissions' and 'recycling resources', increasing the size of the 'energy system business', and achieving a high sales ratio of No.1 eco-conscious products. Panasonic Group aims to be the 'No.1' company by recognizing and reflecting all of the above indexes in its activities.
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10
2-6 Green Indexes: Goals for FY20192-6 Green Indexes: Goals for FY2019
ProductsProducts
Contribution in reducing CO2 emissionsContribution in reducing CO2 emissions
Energy system businesses【3 trillion yen or more】
Energy system businesses【3 trillion yen or more】
Sales ratio of No.1eco-conscious products
【Superior GP: 30% or more】
Sales ratio of No.1eco-conscious products
【Superior GP: 30% or more】
Businesses & ProductsBusinesses & Products
Waste
TowardZero
Recycling
(GP: Green Products)
Size of contribution in reducing CO2 emissionsReduction of 50% compared to the amount of emissions, assuming no action was taken after FY2006 (120 million tons)Total
Resources Used
Resources Recycled In House
Recycled Materials
Production Activities at
Plants
Contribution in recycling resourcesContribution in recycling resources
- Maximizing the ratio of recycled resources to total resources used
- Toward zero waste from production activities
This slide shows our concept of green indexes and our targets for fiscal 2019.
Regarding ‘Contribution in reducing CO2 emissions', we aim for a 50% reduction (approximately 120 million tons) compared with fiscal 2006 corresponding figures, in the total amount of CO2 emissions produced from the manufacturing and usage of our products.
With regards to 'Contribution in recycling resources', we will minimize total used resources and maximize recycled materials used in production. At the same time, we will maximize the amount of recycled resources used in the products. We aim to eliminate waste entirely from our production activities.
Regarding 'Business and products', we aim to achieve sales of more than 3 trillion yen in the 'Energy system businesses'. We also aim to increase our sales ratio of 'superior GP' to 30% or more.
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11
2-7 New ‘eco ideas’ Declaration2-7 New ‘eco ideas’ Declaration
We will create and pursue a business-style which makes the best use of resources and energy
We will promote lifestyles with virtually zero CO2
emissions all throughout the world
‘‘eco ideaseco ideas’’ for Lifestylesfor Lifestyles
The Panasonic Group strives to be a Green Innovation Company with a global perspective
The Panasonic Group strives to be a Green Innovation Company with a global perspective
‘‘eco ideaseco ideas’’ for Businessfor Business--stylesstyles
With a vision looking to the 100th anniversary of our founding in 2018, we will renew our ‘eco ideas’ declaration. This reinstates our contribution to the global environment.
The Panasonic Group will announce new promises and will implement the above two points.
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12
Positioning of New Mid-term Management PlanPositioning of New Mid-term Management Plan
Taking unconventional measuresTaking unconventional measuresTime tomake
changes
New MidNew Mid--term Management Plan term Management Plan (FY2011(FY2011--FY20FY20113)3)
Establish Establish foundations to foundations to be global No.1be global No.1
GP3 plan
ConsolidatingSANYO
as a Group company
FY2013 FY2019
100th
anniversary
PanasonicGroup
filled with significant
growth potential
No.1 Green
InnovationCompany in
the electronics industry
Results Results were far were far below the below the GP3 plan GP3 plan targettarget
3-13-1
Next, I would like to explain the positioning of New Mid-term Management Plan.
The details of the new plan will not be finalized until March. We will announce more details in May based on fiscal 2010 financial results. I would therefore like to show the broad outline and the direction of the growth strategy today.
The aim of the new Mid-term Management Plan is to establish the foundations for becoming the No.1 Green Innovation Company in the Electronics Industry in 2018. Panasonic, as a new Group, will drastically change and proactively take unconventional measures.
We aim to establish a 'Panasonic Group with strong potential growth' by the end of this new Mid-term Management Plan.
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13
3-2 Basic Concepts3-2 Basic Concepts
Integrate environmental contribution and business growth
Implement a bold paradigm shift
Increase profitability based on growth
Japan oriented Drastic globalization
New areas including energySolution & system business oriented
Overdependence onexisting businesses
Single-item oriented
There are three basic concepts, as shown in the slide.
First, we will position environmental contribution one step higher and integrate this with business growth.
Furthermore, we will aim for a bold paradigm shift. More specifically, we will focus on the following points;
- changing 'Japan oriented' to 'drastic globalization'
- shifting from 'overdependence on existing businesses' to 'new
areas including energy'
- shifting from 'single-item oriented' to 'solution & systembusiness oriented'
Through these initiatives, we are determined to get our business on a growth track with the aim of strengthening profitability.
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14
3-3 Major Business Fields in Group3-3 Major Business Fields in Group
BB.B. Devices
AApplianceSolutions
ecoeco
DDigital AVNetworksEnergyEnergy CCar
Electronics
ABCDE × eco
Promote all businesses based on the environmentPromote all businesses based on the environment
In the GP3 plan, we positioned ABCD as the major business fields. In the new Mid-term Management Plan, we will add energy business to these and thus, ABCDE will be the new major businessfields.
The environment will be the key factor in all businesses as 'ABCDE with eco'.
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15
3-4 Six Key Businesses3-4 Six Key Businesses
Security
Energy System
Energy creation (solar cells, fuel cells)Energy storage (rechargeablebatteries)Energy management system, etc.
HealthcareLED
Network AV
Flat-panel TVsDSCs/BDsMobile AV, etc.
Heating/Refrigeration/Air Conditioning
Air conditionersAir purifiersRefrigerator and Freezer Showcases, etc.
Of these major business fields, we have chosen six as the main businesses of Panasonic Group and will accelerate growth throughconcentrating management resources in these.
Energy system, Heating/Refrigeration/Air Conditioning and Network AV businesses will be the Group’s core businesses with the aim of increasing global market shares, thereby leading the Group’s overall sales and profit growth.
Although the business sizes of Security, LED and Healthcare are still small, we aim to grow these businesses significantly with the aim of establishing them as 'future core businesses'.
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16
3-4 Six Key Businesses3-4 Six Key Businesses
Security
Energy System
創エネ(太陽電池、燃料電池)蓄エネ(二次電池)エネルギーマネジメントシステム など
HealthcareLED
Network AV
Air conditionersAir purifiersRefrigerator and Freezer Showcases, etc.
Flat-panel TVsDSCs/BDsMobile AV etc.
Solutions for the Entire Home and the
Entire Building
Heating/Refrigeration/Air Conditioning
We aim to offer solutions for the entire home and the entire building by focusing on these strategic businesses. In this way, we achieve a strong performance and differentiate our company from competitors.
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17
3-5 Comprehensive Energy Solutions3-5 Comprehensive Energy SolutionsEnergy system business 1
Eco for the entire home and the entire building
Energy Management
Community grid
Regional power grid Wide-area
power grid
EV Smart meter
Energy Storage
Energy Creation
Energy Saving
I would like to explain in more detail, focusing on the key businesses.
Our direction in the Energy system business is to offer energy solutions for the entire home and the entire building which other companies can not offer.
Furthermore, we aim to expand this solution from individual houses and buildings to towns and even communities, leading to the establishment of a community grid.
We aim to establish energy systems as a flag-ship business by strengthening the following points: - each product’s competitiveness in 'Energy Creation',
'Energy Storage' and 'Energy Saving'- the ability to offer a value-added system which links with other
products- global sales channels
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18
3-6 Expansion of Solar Cells Business3-6 Expansion of Solar Cells BusinessEnergy system business 2
World’s highest energy conversion efficiency ‘HIT’Thin-film solar cell technology
Worldwide Sales ChannelsTechnologies for energy management, building products/electrical construction materials, etc.
FYFY2012013:3: No.1 in JapanNo.1 in Japan FYFY2012016:6: Global TOP3Global TOP3Targets
Increase sales in each sales channel
Offer system proposalsUtilizing Group products
Accelerating development of new products and technologies
<Investment: approx.100 bil. yen in FY11-16 >
Increase production capacity of HIT
FY10 FY11 FY13 FY16
350
(MW/year)600
850
1.5GW
・・・FY19
Solar cells business is one of the core businesses in 'Energy creation'.
Currently SANYO’s solar cells 'HIT' has the global top level of energy conversion efficiency. SANYO’s technologies such as next generation thin film solar cell technology are the top class in the industry.
We believe we can expand this business dramatically through multiplying these by using Panasonic’s and Panasonic Electric Works’ sales channels and energy management technology, as well as building products and electrical construction materials.
We will make a strategic investment of approximately 100 billion yen in order to increase HIT production capacity through fiscal 2016. Furthermore, we will go all out to increase sales in each sales channels.
In this way, we aim for the No.1 market share in Japan in fiscal 2013 and to be ranked in the global top 3 in fiscal 2016.
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19
Expansion of Lithium-ion Rechargeable Battery BusinessExpansion of Lithium-ion Rechargeable Battery Business
Energy system business 3
Proven track record - world’s No.1 market share
Production technologies supporting cost competitiveness
High capacity, long life, safety technologies
Various customer bases
Strengthening product competitiveness through combined technologies
Expansion of production capacity
Strengthening marketing in car & household
markets
FY10 FY13 FY16
Share : 35%(No.1)
FY19
Total demand
Group consolidation
Market size x2.7
Market size x2.7
Sales: 1 trillion yenShare: 40%
or more
Sales: 1 trillion yenShare: 40%
or more
Win out as No.1 in rapidly growing
& competitive market
Total demand
Total Total demanddemand
Market share (value basis)
3-73-7
Lithium-ion rechargeable battery is the core business in the 'Energy Storage'.
Panasonic has high capacity, long life and highly durable technologies, and a wide customer base through diversified business development.
On the other hand, SANYO has the world’s No.1 market share and production technology supporting cost competitiveness.
With a combined market share of 35%, currently SANYO and Panasonic together have by far the world’s No.1 market share and we have to create the big synergy effect as new Panasonic Group. In addition to 'strengthening product competitiveness through combined technologies' and 'expansion of production capacity', we will strengthen system business in the car and household markets. We will aim for sales of 1.0 trillion yen or more and a market share of 40% or more in fiscal 2016.
We are determined to win out in the rapidly growing and competitive market of lithium-ion rechargeable batteries, and to retain our position as the No.1 battery manufacturer.
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20
3-8 Energy Management Business3-8 Energy Management Business
Alliance with power companies & smart meter adoption
Energy solution proposal in specific areas & towns
Expansion of related product line-ups
Alliance with other companies
Business expansion with a new business model
Global expansion
Apr. 1st 2010 - Establishing Corporate Division for Promoting Energy Solution Business (tentative name)
e.g. Initiative in European market
Establishing a smart grid with a power company Smart
meter
HomeHome
Test demonstration has started with a Danish power company
Consumer electronics products/equipmentsensorsswitchessockets
◆ Connecting wide range of consumer electronics products and equipment in the home
◆ Visualizing & controlling energy consumption
Implementation of energy management system for home use smart meters
Offering equipment & system to individual projects
Energy system business 4
Smart energygateway
Smart Smart energyenergygatewaygateway
PowerGeneration
Power Transmission & Distribution
The energy management business is the area which is going to expand significantly from now on.
At this stage, it is important to build up business experience step by step as well as to create a big strategy.
For example, we started a joint research project for home use smart meters with the Danish power company, SEAS-NVE, in December 2009.
We aim to establish a new business model and expand our businessoperations in this growing market, capitalizing on our strengths in business including the power distribution and wiring.
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21
3-9 Eco Car Market3-9 Eco Car Market<market size forecast> Increase in the need for technological innovation
◆ Price decline of batteries
Drastic change in industrial structure- Horizontal business model- Entry of emerging companies
◆ Improvement of running distance◆ Building infrastructure for re-charging
batteries
Easy & safe rapid re-charging
Power Supply SystemsThermal Systemspower saving for cooling & heating
BatteriesHigh quality & low price
Low-losspower control
technologyLithium-ion
batteriesHeat-pumptechnology
Promote the wide use of EVs, taking a leading role with aggressive proposalsPromote the wide use of EVs, taking a leading role with aggressive proposals
Development of environment-responsive technology
Energy system business 5
EV
Plugin HEV
HEV
2012 2015 2018
2
4
6
(unit: millions)
0(source:Panasonic)
2009 (year)
We will focus on the eco car market which is expected to show significant growth in the future.
We will accelerate the development of this business, focusing on three major areas: batteries, thermal systems and power supply systems. These three areas require the most technological innovation. Ourspecific initiatives in these areas are:
-high quality and lower price batteries for EVs
-power saving for cooling and heating conditioning which areequipped with heat-pump technology
-easy and safe rapid re-charging of batteries through low-losspower control technology.
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22
Refrigeration & Air Conditioning Solutions Business Refrigeration & Air Conditioning Solutions Business
Cooling & heating conditioning business
Industrial top-class saving energy technology
Product competitiveness & strong development in consumer use
Technological capabilities & product competitiveness in industrial use
Service & engineering skills
Solar energy generation
Showcases
Air conditioners
Freezers
Ventilators
Refrigeration & air-conditioning solution
Lighting
Energy solution
Energy management
‘Proposal for the entire store’(supermarkets, convenience stores, restaurants etc.)
3-103-10
In the cooling and heating conditioning business, in particular the industrial refrigeration and air conditioning solutions business, we will make the best use of the New Panasonic Group’s comprehensive strengths.
We combine the strength of Panasonic and that of SANYO. Panasonic’s strength is in saving energy technology based on know-how accumulated from our consumer products and cutting-edge product competitiveness, while SANYO’s strength is in the products for industrial use.
Combining these strengths, we can offer comprehensive refrigeration and air conditioning solutions for supermarkets, convenience stores and restaurants. Furthermore, we will offer proposal for the entire store including 'energy solution'.
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23
eco
3-11 Flat-panel TV Business3-11 Flat-panel TV BusinessNetwork AV business 1
Develop-ment of
new markets
Volume-zone
strategy
New panel production factories(Amagasaki and Himeji in Japan)New panel production factories
(Amagasaki and Himeji in Japan)Module / assembly
centralizing production overseasModule / assembly
centralizing production overseas
・ Full HD 3D
・ LED backlight
・ Emerging countries:CRT TVs
・ Americas:Projection TVs
FY10 FY11
15.5
20.0
32-inchor
smaller
37-inchor
larger
42%50%
32-inch LCDs
58 and 65-inch PDPs
50-inch or larger PDPs
30% of all LCD models
repl
acem
ent
intro
duct
ion
(millions units)
30.0
From FY13
onward
・40% Energy Saving in PDP TVs
With regard to flat-panel TVs which are the core product in the Network AV business, we will win out in the global competition with new product ranges.
First, as development of new markets, we will introduce 50-inch or larger full HD 3D PDP TVs in the spring. Furthermore, we will introduce LED-backlight LCD TVs and increase the production of them to 30% of all LCD models in fiscal 2011.
At the same time, as a volume-zone strategy, we will focus on replacement demand for CRT TVs in emerging countries, and on projection TVs in the Americas. We will develop local-oriented product planning to capture this demand.
We will also steadily address energy saving in flat-panel TVs. As well as the introduction of LED-backlight LCD TVs, we aim to achieve a 40% energy saving compared with last year in the cutting-edge PDP TVs. This is the same level of energy saving as for LCD TVs.
In order to promote these initiatives and to achieve a profit increase, fifth domestic PDP plant (in Amagasaki) and IPS α plant (in Himeji) in Japan will start operating this year, and we will accelerate shifting of module and assembly production to overseas locations.
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24
3-12 Market Introduction of 3D TVs3-12 Market Introduction of 3D TVsNetwork AV business 2
CES(Consumer Electronics Show)
Press Conference
Filming & editing
Authoring
Panasonic Hollywood Laboratory
Viewing at Home
Establish dominant market position through comprehensive strengths in End to End
Establish dominant market position through comprehensive strengths in End to End
CES(Consumer Electronics Show)
Press Conference
Full HD Plasma 3D theater
With regard to exploiting the market for full HD 3D TVs, we haveannounced the production launch for household use, which is the world’s first, at the Consumer Electronics Show in Las Vegas, in the US.
We will expand this development as a new pillar in the flat-panel TV market, using our comprehensive strengths as End to End solution, from filming and editing, to authoring and viewing at home.
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25
3-13 Developing New Core Businesses3-13 Developing New Core Businesses
Rapid global development in finished products(lighting & TVs)
Healthcare Expand business through maximizing potential growth of Panasonic Group
Capture overseas markets through offering stronger solutions led by Panasonic System Networks Company
LED
Security
Growing business for next generation
Future core businesses: Security, LED and Healthcare.
With regard to Security, System Networks Company, which was established on January 1st 2010, will take the lead in collaboration with related domain companies and internal divisions. In particular, we will strengthen our solutions businesses in overseas markets including construction and services.
The LED market is expanding rapidly. Our aim is to implement a rapid global sales expansion of LED TVs and lighting-related production, not adhering to the vertical integration business model.
In terms of Healthcare, we will expand this business by maximizing the potential growth for the Group based on our current wide product range, from water filter and health-related home electronics, to bio-related facilities.
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26
3-14 Group Management Innovation3-14 Group Management Innovation
Director: President
Cur
rent
Cur
rent
New
Str
uctu
reN
ew S
truc
ture
Corporate Division for PromotingManufacturing-oriented Innovation Corporate IT Innovation Division
Management & IT Innovation
SubcommitteeV-Products
SubcommitteeEnvironment Innovation
Subcommittee
New & Key Business Promotion
Subcommittee
Group Management Innovation Division
As ofApr.1
A ‘Group Management Innovation Division' will be established on April 1st for accelerating Group management innovation by integrating ‘Corporate Division for Promoting Manufacturing-oriented Innovation' and ‘Corporate IT Innovation Division'.
Under new four subcommittees, the new Panasonic Group including SANYO will strongly pursue innovation activities in the frontline.
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27* Internal guidelines for new Mid-term Management Plan
Energy systems
Operating profit ratio
1.7%
10%or more
FY2010 FY2013 FY2019
(yen: trillions)
excluding SANYO
Business Structure Change as Panasonic GroupBusiness Structure Change as Panasonic Group
Energy systems more than 3.0
More than 10.0
9.5 *Sales 7.0
3-153-15
In a big transition period, we will aim to not only increase thebusiness size but also enhance profitability. This can be achieved by introducing greater flexibility in our business frameworks and models.
Towards fiscal 2013, we will grow through offering our customers a wide range of solutions and focusing on six key businesses, while combining our contribution to the environment with business growth.
Furthermore, in the big core business of 'energy systems', we aim for sales of more than 3 trillion yen. By fiscal 2019 we aim to become a company which can offer various 'entire solutions‘, working closely with our many key businesses.
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28
Operating profit ratio
1.7%
10% or more
(yen: trillions)
FY2010 FY2013 FY2019
* Internal guidelines for new Mid-term Management Plan
excluding SANYO
More than 10.0
Sales 7.0 9.5*
World’s No.1 Green Innovation Company in the
Electronics Industry
World’s No.1 Green Innovation Company in the
Electronics Industry
Business Structure Change as Panasonic GroupBusiness Structure Change as Panasonic Group3-153-15
We also aim to be the world’s No.1 Green Innovation Company in the Electronics Industry, through further green life innovation and green business innovation.
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29
Framework of Management PolicyFramework of Management Policy
Vision Looking to the 100th
Anniversary of Our Founding in 2018
No.1 Green Innovation Company in the Electronics Industry
Green LifeInnovation
Green BusinessInnovation
Targets ofGroup
Management
ManagementIndex
- Global Networking - Individual Customer Touchpoints No.1
- Synergy creation- Be Industry No.1 in Green Indexes
- Consistently exceeding global excellence indexes
New Panasonic GroupNew Panasonic GroupContributing to the progress and development of society and enriching people’s lives through manufacturing
MaximizingSynergy
シナジー最大化Growth Strategies in New Mid-term Management Plan
Establish Foundationsto Be No.1
Group GrowthStrategy
- Expansion of Energy System Business
Integrate Environmental Contribution and Business GrowthMake a Bold Paradigm ShiftIncrease Profitability Based on Growth
- New Markets for Flat-panel TVs
- Strong Sites / Communications Innovation
- Accelerating Group Management Innovation
Six Businesses Entire Solution
Manufacturing-oriented &
Management Innovation
KeyBusinesses
Today, I explained our abridged management policy for fiscal 2011.
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30
Management Slogan for 2010Management Slogan for 2010
Last, I would like to announce a management slogan for 2010.
I have chosen our management slogan for this year as 'Unite Our Efforts – Drive Eco Innovation'.
2010 is the year in which we, as the new Panasonic Group, take the first big step on the road to becoming the world’s No.1 Green Innovation Company in the Electronics Industry.
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Thank you very much for your continued support.
32Copyright (C) 2010 Panasonic Corporation. All Rights Reserved.
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Disclaimer Regarding Forward-Looking StatementsThis presentation includes forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934) 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. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 and its other filings.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 United States, 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; currency rate fluctuations, notably between the yen, the U.S. dollar, the euro, the Chinese yuan, Asian currencies and other currencies in which the Panasonic Group operates businesses, or in which assets andliabilities of the Panasonic Group are denominated; the possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; the ability of the Panasonic Group 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 on the alliances or mergers and acquisitions including the acquisition of SANYO Electric Co., Ltd.; the ability of the Panasonic Group to achieve its business objectives through joint ventures and other collaborative agreements with other companies; the ability of the Panasonic Group 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 assets in which the Panasonic Group has holdings or changes in valuation of long-lived assets, including property, plant and equipment and goodwill, deferred tax assets and uncertain tax positions; future changes or revisions to accounting policies or accounting rules; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout the world 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 Panasonic’s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission.
In order to be consistent with generally accepted financial reporting practices in Japan, operating profit (loss) is presented in accordance with generally accepted accounting principles in Japan. The company believes that this is useful to investors in comparing the company's financial results with those of other Japanese companies. Under United States generally accepted accounting principles, expensesassociated with the implementation of early retirement programs at certain domestic and overseas companies, and impairment losses on long-lived assets are usually included as part of operating profit (loss) in the statement of income.