panasonic ir day 2013 · profile of automotive & industrial systems company ais company ¥ 2.5...
TRANSCRIPT
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
May 30, 2013
Panasonic Corporation Automotive & Industrial Systems Company
President Yoshihiko Yamada
Automotive & Industrial Systems Company
Midterm Plan
Panasonic IR Day 2013
1
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “fiscal 2014” or “FY2014” refers to the year ending March 31, 2014.
Contents
1. Company Profile
2. Midterm Plan
3. Measures for UnprofitableBusinesses
4. Growth Strategy
2
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
Contents
3
1. Company Profile
2. Midterm Plan
3. Measures for UnprofitableBusinesses
4. Growth Strategy
Company name Automotive & Industrial Systems Company
President Yoshihiko Yamada
Business scope
• Automotive business• Industrial business• Manufacturing business
Number of affiliated companies
Global: 152 (Japan) 35, (Overseas) 117
Profile of Automotive & Industrial Systems Company
AIS Company
¥ 2.5 trillion
AIS Company
¥ 2.5 trillionPanasonic Corporation
¥ 7.3 trillion
Positioning in Panasonic Corporation
FY2013Business results
4
Sales: ¥2,518 bil.
OP: ¥ 29.5 bil.
FCF: ¥ 8.1 bil.
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
Automotive & Industrial Systems Company (AIS Company)
Automotive Marketing & Sales Division
Industrial Marketing & Sales Division
Business Development Division Engineering Division
In charge of Automotive BusinessSenior Vice President
Masahisa Shibata
In charge of Manufacturing BusinessVice President
Katsuhiko Omoto
Automotive & Industrial Systems Company (Organization)
Au
tom
otive
Info
tain
me
nt S
yste
ms
B
us
ine
ss D
ivisio
n
Au
tom
otive
Elec
tron
ics B
usin
ess
Divis
ion
Au
tom
otive B
attery Bu
sin
ess D
ivisio
n
Pan
ason
ic Sto
rage B
attery C
o., L
td.
Po
rtable R
echarg
eable B
attery B
us
ine
ss D
ivisio
n
En
erg
y De
vice
Bu
siness D
ivision
Ca
pac
itor B
us
iness
Divis
ion
Prin
ted C
ircuit B
oard
Bu
siness D
ivision
Circu
it Co
mp
on
ents B
usin
ess Divisio
n
Elec
trom
ech
anica
l Co
mp
on
ents
Bu
sin
ess
Divis
ion
Electro
nic M
aterials Bu
siness D
ivision
Au
tom
ation
Co
ntro
ls Bu
siness D
ivision
Sem
icon
du
ctor B
usin
ess D
ivision
Pan
ason
ic Precisio
n D
evices Co
., Ltd
.
Op
tical Pick
Up
Bu
siness
Divisio
n
Pan
ason
icF
actory S
olu
tion
s Co
., Ltd
.
Pan
ason
ic Weld
ing
System
s Co
., Ltd
.
Pan
ason
ic Cycle T
echn
olo
gy C
o., L
td.
Pan
ason
ic Po
lyTech
no
log
yC
o., L
td.
Ex-PAS*Company
Ex-Energy Company Ex-Industrial Devices Company Ex-MS*Company
5
*PAS Company: Panasonic Automotive Systems CompanyMS Company: Manufacturing Solutions Company
President: Yoshihiko Yamada
In charge of Industrial BusinessSenior Vice President
Yoshio Ito
AIS Company’s Midterm Management Vision
Become a growth engine for Panasonic Group as a vanguard in B2B business. Establish a foundation for mid to long term growth and profit with setting
”automotive” and “industry” as core businesses.
Boldly accumulate resources and grow as an electronic system supplier
Boldly accumulate resources and grow as an electronic system supplier
Contribute to improve values of factories and social infrastructures
with creating a foundation for long-term profit
Contribute to improve values of factories and social infrastructures
with creating a foundation for long-term profit
Establish a foundation for short-term profits by setting package
solutions and others as a core business
Establish a foundation for short-term profits by setting package
solutions and others as a core business
ICT fieldICT field
Automotive fieldAutomotive field Industrial fieldIndustrial field
6
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
Characteristics of AIS CompanyOwn “core technologies ” ranging from materials, devices to systems.
* Core technologies: “electronic materials,” “thin film MEMS,” “electrochemical,” “optical and precision processing,” “mounting,” and “welding and processing” technologies
Ability to provide B2B solutions covering a “wide variety of business fields.”
7
*
Contents
8
1. Company Profile
2. Midterm Plan
3. Measures for UnprofitableBusinesses
4. Growth Strategy
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
Midterm Management TargetAim to grow and expand profits with mainly focusing on the 3 fields of
Automotive, Industry and ICT.
FY13 FY14 FY16FY15
Sales and Operating profit ratio
[Yen: billions]
[Yen: billions]
Auto-motive
Industrial
ICT
Others
Free Cash Flow
•Sales: 2.7 trillion yen, Operating profit ratio: 5.0%•FCF: 265 billion yen (Cumulative amount between FY14 - FY16 )
FY2016
2,518 2,540 2,610 2,700
8.1
65.0
90.0
110.0
FY13 FY14 FY16FY15
1.2%
3.0%4.0%
5.0%
9
Profit Improvement Plan
Operating profit (FY13 → FY16) Sales composition by business profitability
[NOTE] The number in circle below shows the number of business divisions.
Loss
0 - 5%
[OP ratio]
XX%
XX%
X%
32%14%
37%55%
18%
31% 31%
82%
FY13 FY14 FY16
In FY15, return all business divisions to be profitable. In FY16, 13 business divisions will generate operating profit ratio of more than 5%.
Improve profitability by 106.5 billion yen with returning loss-making businesses to be profitable.
10
⑥
⑤
⑦
④
⑧
⑥
⑤
⑬
*Unprofitable business divisions in FY13: Semiconductor, Portable Rechargeable Battery, Automotive Battery, Panasonic Precision Devices, Optical Pick Up, Printed Circuit Board
29.5
[Yen: billions]
FY13 FY16
+32.4+32.4
FY14
+53.6+53.6
*1
*1. Other business divisions improve their profitability *2. Investment on new business, etc.
*1 *2
Un
pro
fitable
Bu
siness d
ivision
s Im
pro
ve p
rofitab
ility
Un
pro
fitable
Bu
siness d
ivision
s Im
pro
ve p
rofitab
ility
76.0
136.0
+106.5
5% or more
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
Contents
11
1. Company Profile
2. Midterm Plan
3. Measures for UnprofitableBusinesses
4. Growth Strategy
Reduction in
fixed costs
•Reorganization of sites in Japan
6 sites → 3 sites
•Expand in key areas (power and industrial fields, etc.)
Portable Rechargeable Battery :Profit Improvement Plan
Drastically reduce fixed costs and shift resources to other fields which can leverage our strengths.
Transfer
business
12
•Expand local material procurement ratio in overseas
40% (FY13) → 60% (FY14) → 95% target (FY16)
[Sales Composition]
28% (FY13) → 40% (FY16)
Stream
lining
-10.0
6.3
18.5[Yen: billions]
FY13 FY14 FY16
FY13 → FY16Profit improves by 28.5 billion yen
-12.8
+8.5
+11.4
+1.9
+18.7
+16.3
Price
d
eclines
Red
uctio
n in
fix
ed
co
sts
Tra
ns
fer
bu
siness
Stream
linin
gan
d o
thers
Red
uctio
n in
fix
ed
co
sts
+12.2
Price d
eclines
+25.4
-28.2+3.6
Stream
linin
g an
d
oth
ers
Tra
ns
fer
bu
siness
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
High-capacitance technology and control technology to maximize characteristics of batteries.→ Aim to grow businesses which can
generate 40 billion yen in power and industrial fields in FY16.
Power storage systems (e.g.)
Steadily capture the growing market of thin-type products→ Utilize OEM and expand with
asset-light strategy.
Cylindrical types: distinguish with profitability.
Portable Rechargeable Battery :Concrete Measures
Expand in power and industrial fields by exerting our strengths in high-capacitance, high-reliability and control technologies.
ICT
Ke
y areas
13
FY13 FY16Power control ECU
Power control element
Battery moduleOthers
[Yen: billions] 266.3285.0
Notebook PCsMobile phones
TabletsSmartphones
Electric bicycles, etc.
Power & Industrial
Optical Business:Profit Improvement Plan
Reduce fixed costs with expanding production outsourcing and reorganizing sites in and outside of Japan.
Downsize optical pick up and optical disc drive businesses for personal computers, and transfer into new business area.
FY13 → FY16Profit improves by 11.1 billion yen
Reduction in
fixed costs
• Expand production outsourcing (optical pick up and optical disk drives)
•Reorganization of sites in and outside of Japan Concentrate operations into Kumamoto factory, and close Vietnam factory.
Transfer business
•Utilize optical and precision processing technologies.
FY13Operating
profit
FY13 FY16FY14
14
FY14Operating
profit
Expand sequentially
later on.
FY1319%
FY1430%→
Precision processing products
• Ink jet• Thermoelectric
conversion parts,and others
Optical application products
• 3D sensor• Micro projector,
and others
FY13 → FY14 FY14 → FY16
Existing
Newabout 50%
Improved by 6.2 billion yen
Improved by 4.9 billion yen
Price
d
eclines
Red
uctio
n in
fix
ed
co
sts
Tran
sfer bu
siness
Price d
eclines
Red
uctio
n in
fixed co
sts
Tran
sfer b
usin
ess
<Sales composition>
FY16Operating
profit
→
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
Printed Circuit Board :Profit Improvement Plan
Reduce fixed costs by downsizing production in Japan and expanding overseas production.
Transfer into new areas of core materials and semiconductor package print board.
FY13 → FY16Profit improves by JPY 11.0 billion
FY16Operating
profit
15
Reduction in
fixed costs
Transfer business
•Reorganization of production sites inand outside of Japan6 sites → 3 sites
•Expand overseas production ratio
30% (FY13) → 80% (FY14) → 85% (FY16)
•Expand high-value-added products
FY13 FY16FY14
Existing
Core materials
Semiconductor package
Newabout 50%
•Increase the ratio of overseas materials.45% (FY13) → 60% (FY14) → 80% (FY16)
Stream
-lining
FY13 → FY14 FY14 → FY16Improved by
9.3 billion yen Improved by
1.7 billion yen
<Sales composition>
FY13Operating
profitT
ransfer b
usin
ess
Stream
linin
g an
d
oth
ers
Stream
linin
g an
d o
the
rs
Price d
eclines
Price
d
eclines
Red
uctio
n in
fix
ed
co
sts
FY14Operating
profit
• Shifting from AV field to high-value-added automotive and industrial fields.
Semiconductor :Profit Improvement Plan
Strengthen corporate capability by thoroughly reducing fixed costs.Improve marginal profit by transfer into new areas such as automotive and
industrial fields.
-3.3
6.8
+2.9
+2.6
[Yen: billions]
FY13 FY14 FY16
+4.5
FY13 → FY16Profit improves by 27.3 billion yen
Reduction in fixe
d costs
• Investment control and effect of impairment loss
• Reduction in labor cost• Reorganization of production sites
in Japan
Transfer business
16
-20.5
+4.3
-4.3
<Sales composition>Price d
eclines
Mo
ving
into
new
areas
Stream
linin
g an
d o
the
rs
Re
du
ction
in fixed
costs
+17.2
+10.1
Tran
sfer bu
siness
Stream
linin
g an
d o
the
rs
+5.6
Price d
eclines
-5.4
Red
uctio
n in
fix
ed
co
sts
+17.1
Automotive & Industrial
FY16
180 bil. yen
FY13
184 bil. yen38% 55%
ICT
AV
ICT
AV
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
AutomotiveNeeds: light, durable for long time
use, safe
IndustrialNeeds: low-heat (highly efficient),
small-size and light
White LED
DCDC power supply
Battery control LSI
Automotive camera
Image sensor
GaN RF
GaN power
Motor driver
Server Small-sized base station
Security camera
Display control LSI
•DCDC power supply IC / Battery control LSI
•Motor driver IC
•FeRAM / ReRAM microcomputer (IC card)
•Display control LSI
•Automotive camera module
•Medical / Monitor image sensor
•GaN RF (base station wireless module)•GaN Power (power supplies for
automotive and server)•White LED (automotive / generic lighting)
Low power consumption
Imaging
Compound Semiconductor
Semiconductor :Concrete Measures
Apply property of micro-fabrication and large-diameter processes to analogs and compounds.- Maximize our strengths in low power consumption, imaging and compound technologies.
17
GaN power
Contents
18
1. Company Profile
2. Midterm Plan
3. Measures for UnprofitableBusinesses
4. Growth Strategy
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
2.0
Automotive Field :Challenge to Generate 2 trillion yen Sales
Through collaborating with Panasonic Group as well as utilizing external resources, challenge to a new business field which is totally different from existing business fields.
FY13 FY16 FY19
1.01.2
Proactively utilize external resources
Challenge in new business areas through collaboration and M&A, etc.
Maximize collaboration with Panasonic Group companies
Offer comfortable space with a cockpit system.
Utilize the expertise of Tier-1 and expand sales
with system, devices and materials.
“Stop being Japan-oriented”
Build up a business by focusing mainly in US and Europe and exploit new customers.
19
Expansion of existing areas
Unconventionalchallenges
[Yen: trillions]
Capture E
urope and US
customers
and new foreign custom
ers
FY16→FY19
Automotive Field :New Business Creation
Leverage strengths, grow up by new businesses centering around “comfort,” “sense of security and safety,” and “electrically powered” areas.
Co
mfo
rtS
ecurity
and
safety
Challenge to system development involving operation control.
+300 bil. yen
AUPEO!
16→19+200
bil. yen
20
In addition to multimedia field, expand to “run, stop and turn”field.
•Utilize the sensing devices (automotive camera, ultra-sound sensor).
Electrically p
ow
ered
Propose a system combined with strong batteries•For no idling and HEV. 16→19
Develop a small-sized and highly-efficient integrated power supply system.•Integrate battery charger and inverter.
Expand cockpit business fields.
•From module to system
Develop a cloud service business.
+300 bil. yen
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
Grasping the needs of automation and manpower saving, contribute to customers worldwide.
Expand energy-saving devices in the FEMS (Factory Energy Management System) field.
Industrial Field:ex.) Expand “Manufacturing Solutions”
FY13 FY14 FY16
Sales plan ofmanufacturing business
”Manufacturing solutions”
Renewal supportRenewal
support
Delivery / Installation adjustment
Support to improve productivity and
quality
OperationsupportOperation
support Manufacturing consulting
Upgrading
Intro-duction supportIntro-
duction support
Produc-tion site
Operation status
Manufacturing process at customers
21
Energy saving
supportEnergy saving
support
180
[Yen: billions]
190220
Disposal of facilities
ICT Field: Selection and ConcentrationExpand sales of high-share and high-profit products.
- Strengthen the communications infrastructure field and expand our share in mobile terminal market.
Measures of main products
Conductive polymer capacitors
Multi-layer circuitboard materials
Mobile connectors
FY13 FY14 FY16
Sales plan
[Yen: billions]
High share and high profit products*
*Total sales of conductive polymer capacitors, mobile connectors, multi-layer circuit board materials, light touch switch, graphite sheet, noise-related components
Expand sales for China and Asia markets
Expand sales for new customers including China emerging makers
22
530 520 510
36%41%
46%
New business development for servers and base stations
Strength: Conductive polymer technology
→ No. 1 market share (over 50%)for IT equipment power supply smoothing application
Strength: Precision cutting processing technology
→ No. 1 market share (35%) for mobile terminal
Strength: Resin design technology → No. 2 market share (10%) for
high-end application
%: Sales composition
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
Formation for New Business Creation
• Create a business across business division boundaries. → Complement a divisional system. • Concentrate and specialize to create a business → Accelerate a shift to growth areas.
in 3 years.• AIS Company’s President concurrently serves → Bold and swift management
as the Division Director. judgment
23
Key activities
Combine
Expand
Accelerate
Offer a business proposal across business divisions, AIS Company and PC Group.
Break away from a product unit selling and overly self-sufficient business approach. Embrace a business opportunity in the form of system and services.
Make a proposal of R&D SEEDs to market.
Operations
Six-zone global operations with a workforce of 400 employees
China
Jun., ‘13
Taiwan
Jun., ‘13
Japan
Apr., ‘13
North America
Apr., ‘13Europe
Sep., ‘13
India
Sep., ‘13
Create a “new business” which can generate 10% sales of AIS Company’s total sales in FY16.
Newly set up “Business Development Division” in April 2013. (involving members from Business planning, Marketing and Engineering)
Solution
New business model
Exploit next
Concrete Example
Power supply system for small-sized base station
24
Changes
in market 3G → 4G
<Macro-cell(sound
Communication)><small cell (data communication)>
Accelerate to shift from conventional macro-cell to small-cell
Cell radius: a few km Cell radius: a few hundreds meters
Solution
Solar power generation
DC/DC converter with MPPT
AC/DC converter
Small-cell base station
Power control unit
Storage battery unit
Leverage the strength of next generation of power devices.
Small-size with highly-efficient GaN
Differentiate with power control
[Service business]• Deterioration
diagnosis and remote controlWind power
generation
Grasp the changes in market and propose a solution covering system to services
Copyright (C) 2013 Panasonic Corporation All Rights Reserved.
25
Disclaimer Regarding Forward-Looking StatementsThis presentation includes forward-looking statements (within the meaning of 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 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 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 and liabilities 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 business reorganization after the acquisition of all shares of Panasonic Electric Works Co., Ltd. and 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 inproducts 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, 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 version of Panasonic’s securities reports under the FIEA and any other documents which are disclosed on its website.
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, expenses associated 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.