this presentation contains the business policy of eco … · · 2018-04-04this presentation...
TRANSCRIPT
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
This presentation contains the business policy of Eco Solutions
Company.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
The results for FY2016.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
In FY2016, both sales and profit decreased. The sales were
1,610.8 billion yen, minus 3% year-on-year. The operating profit
was 78.4 billion yen, which decreased by 16.9 billion yen year-on-
year. The operating profit margin was 4.9%.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
The sales decreased by 48.9 billion yen, due to a sharp drop in
domestic solar sales in the residential market and a slower
recovery in the domestic housing market than expected.
There was also a negative impact of 22.5 billion yen from price
declines mainly in lighting and solar.
Sales decreased by 55.2 billion yen, mainly due to the big
impact of the domestic sales decline in solar, although the
domestic sales of LED lighting, and the overseas sales of wiring
equipment, ventilation systems, as well as ceiling fans, expanded.
The operating profit decreased by16.9 billion yen. Measures,
such as an overseas sales increase and streamlining could not
offset the impact of the domestic sales decrease of 17.3 billion
yen and profit deterioration of 10.5 billion yen due to the weak yen.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Here is the impact of the PV power generation system business
(solar business), which faced a significant change.
Other businesses excluding the solar business achieved a sales
increase year-on-year.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
In the domestic residential solar market, a sales decline in terms
of volume and unit price continued, and the market size in terms
of value in FY2016 become almost half compared to that of
FY2013.
On the other hand, our sales remained at a decrease of about
25% compared to FY2013, due to increased market share with
the PV "HIT" and initiatives to control unit price decline.
We managed to secure more than 5% operating margin from
various cost reductions, although the operating profit decreased
due to a sharp sales decline compared to FY2015
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
From our six large scale business divisions, these are the results
for ES.
By steadily incorporating LED demand with a focus on non-
residential LED, the Lighting Business Division achieved
increased sales and profit.
Despite decreased sales year-on-year due to a struggle in a
popular priced segment, the Housing Systems Business Division
achieved increased profits by shifting to mid- and high-end
products, as well as from the effects of restructuring and
reorganization efforts which took place until FY15.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
This is the business portfolio of our four business divisions
between FY2013, which is the year ES was established, and
FY2016, with sales shown on the horizontal axis and operating
profit margin on the vertical axis.
The size of the circles represents the amount of operating profit.
As you can see, the Lighting Business Division, the Energy
Systems Business Division and Panasonic Ecology Systems Co.,
Ltd. all achieved sales growth with profits.
Despite achieving profit growth, the Housing Systems Business
Division faced an issue with sales growth.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Growth strategy towards FY2019 and beyond.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
We have revised ES' sales goals for FY2019 to 2.3 trillion yen.
This consists of 1.6 trillion yen for residential-related business,
including PanaHome, and 700 billion yen for non-residential-
related business.
This was revised due to three factors: changes in the domestic
market for the PV power generation system business; a review of
the timing in which PanaHome can achieve its targets (such as
for overseas businesses); and an exclusion of increased sales
through noncontiguous growth, including M&A.
We will aim for an operating profit margin of 6.0% for FY2019.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
This is a strategic framework.
The sales increase amounts shown are the totals for the Group.
For the residential-related business we will proceed as a Group,
in collaboration with PanaHome, with five growth strategies.
For the non-residential-related business, we will pursue growth
with a focus on the roll-out of our LED solution business and
engineering business.
In particular, we will make investments primarily in the remodeling
business, elderly care (Age Free) business and overseas
residential-related business, and the LED solutions business for
the non-residential category.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
The business policy for FY2017.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
The market environment surrounding us in FY2017.
As you know, we expect a year-on-year growth of 1% in Japan,
and a year-one-year growth of 6% in the priority regions overseas.
This does not include the effects from the consumption tax hike.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Under this market environment, we will see an increase in both
sales and profits in FY2017.
We have set a sales goal of 1,640 billion yen, a 3% increase year-
on-year.
We are aiming for an operating profit of 90 billion yen, which is
13.7 billion yen more than the previous year, and a 5.5%
operating profit margin.
Although it is assumed that competitive market conditions in the
domestic solar business will continue, we intend to realize sales
growth with profits primarily in growing markets, such as the
remodeling and senior markets.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
The Sales and OP Analysis.
For the domestic market we are aiming to increase sales from a
growth in the remodeling and elderly care business, as well as
from a market share increase in LED lighting.
For the overseas market we are aiming for an additional sales
increase in market share in wiring equipment, an expansion of
LED lighting in the ASEAN region, India and Turkey, as well as an
increase in sales in North America with a focus on ventilation
systems .
With regard to operating profit, despite the increased in fixed
costs from upfront investments in growing businesses, we are
aiming for a profit growth of 13.7 billion yen from streamlining
which surpasses domestic and overseas price declines, and from
an increase in sales and profits.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
These are the strategic sales goals for Eco Solutions Company.
We are aiming for increased sales of 30 billion yen in the
residential-related business, with a focus on the expansion of the
remodeling business and elderly care business, and for the non-
residential-related business, we are aiming to increase sales by
about 20 billion yen from a growth in the LED solutions business
and engineering business.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
The key strategies of the residential-related business.
The first key strategy for the residential-related business is the Remodeling Business.
The target for FY2017 is 255.9 billion yen, +7% year-on-year.
Panasonic Home Renovation Co., Ltd. was established in April 2016, consolidating
remodeling business brands into Panasonic Reform.
We will work on the expansion of the remodeling business by bringing together the
strength of the group, in collaboration with brand licensed stores, building products chain
stores, local electrical appliance stores and elderly care shops.
In order to do that, we will actively make various upfront investments.
In terms of products, in addition to the strengthening of our lineup of mid-to-high end
products, we will proceed with the creation and realization of "living space value" as part
of our Cross-Value innovation plan.
Through an increase in design staff at Panasonic Home Renovation Co., Ltd. and a
strengthening in collaboration with our broad range of construction networks, we will be
able to respond more effectively to a wide range of customer needs specific to home
remodeling.
Also, in order to improve the contact we have with customers, four new Living Showrooms
will be opened.
Panasonic Home Renovation will newly open 50 directly managed shops, making a total
of 70 sites.
The Panasonic Reform Club, an organization consisting of building contractors and
renovation stores (brand licensed stores), will have 400 shops which will enable the whole
Group to promote the expansion of customer friendly remodeling contacts.
In order to strengthen the horizontal function of the policies within the Group, we will carry
out consistent remodeling business policies by setting up a Panasonic Home Renovation
Division inside ES and providing both strategic and IT support.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
The creation and realization of Living Space Value.
Panasonic is a unique company which has both "infill", which
includes building equipment/materials, electrical construction
materials and consumer electronics, and "skeleton" which
includes construction materials, exterior materials and the actual
houses
By mixing know-how of proposals/design/construction, we will aim
to realize a new Living Space Value that only Panasonic can
create, and deliver it to our customers.
As a part of this we established the Living Space Lab, which
demonstrates Living Space Value, at the Panasonic Center Tokyo
in April.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
The second key strategy is the expansion of the Age Free Business,
which is a generic term for our domestic elderly care businesses.
We did some preparation for its growth in FY2016.
We will aim for 37 billion yen, 25% growth year-on-year, in FY2017.
For the purpose of integrating management resources, the previous ‘four
company structure by service’ was re-organized into a single company
structure, Panasonic Age-Free Co., Ltd., in April 2016.
The elderly care services and elderly housing with support services
business will continue to focus on new site expansion.
In FY2017, the establishment of 30 elderly care service sites with short-
stay, adding to the existing 125 in-home care service sites, is planned.
Also the establishment of 20 Elderly Housing units with support services
is scheduled, making a total number of 45.
Regarding the improvement of the labor environment for nursing care
staff, which is an issue in this business field, we will make an improved
environment and try to improve customer services by effectively utilizing
Panasonic's IoT/ICT technology.
Moreover, we will try to improve the retention rate by enhancing human
resources development and training.
We will aim to expand the business by providing quality service, which is
most important in the care business, and by providing customers with
confidence in the Panasonic brand.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
The third key strategy is the expansion of the residential energy
management business.
This business will be expanded to 103.5 billion yen, a growth of 6%
year-on-year, in FY2017.
The PV power generation system business will "maximize profits by
fully utilizing the existing operational resources“ in spite of continued
competitive market conditions.
We will try to increase our share in the domestic residential market
by adding product line for each market segment.
We will harvest fruits from our investments in streaming/increases in
the production of panels last year, in addition to pursuing further
streamlining.
Smart HEMS will be further strengthened with a highlight on total
energy management, including solar power and storage batteries,
and the structure of ZEH corresponding proposals. Additionally, we
will proceed with reviewing family monitoring services and new
service applications corresponding to electric power deregulation.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Now, the last key strategy of the residential-related business is
with regard to our overseas business.
We are aiming at 162.5 billion yen, a 9% year-on-year real growth,
excluding the effects of exchange rates.
For ASEAN, India and Turkey, we will accelerate expansion of
new developments, such as LED lighting, while increasing share
further in the already dominant wiring devices market.
In ASEAN, we aim to collaborate with PanaHome's housing
business as well as introduce housing facilities adapted to the
local climate and life style.
With regard to North America, a newly established production
base in Mexico for ventilation systems will be fully operational
from October. This “made in market" system will accelerate our
growth strategy.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
I will move onto the growth strategies for the non-residential
related business.
The first key strategy is the expansion of the LED solution
business.
We will expand this to 258.8 billion yen, a growth of 5% year-on-
year.
We already have a no. 1 market share in the non-residential
market, and will steadily increase this share in FY2016 also.
In FY2017 we will reinforce the professional proposal teams to
about 200 staff at the sales front as well as try to strengthen
development initiatives by market.
For overseas, as an additional growth engine, we will accelerate
development in China, Indonesia and India.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Next, the Engineering Business.
Aiming at 132.6 billion yen, a growth of 7% year-on-year, we will
accelerate "challenges in new areas" in addition to the expansion
of the domestic engineering business, which will continue to serve
as a base.
In the environmental engineering business, the chemical recycling
business will be expanded full-scale.
Also we shall enter the livestock industry, engaging in the
construction of facilities/building and sales of devices/equipment
for dairy/poultry.
Overseas we will aim for further growth of the PV solution
business in North America.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Finally, I will explain about the Lighting Business Division and the
Housing Systems Business Division, belonging to the six large
scale business divisions.
First, the Lighting Business Division.
The Lighting Business Division's operating margin for FY2016
was 6.3%.
We are aiming for 338.8 billion yen sales and 7.2% operating
margin for this business division by focusing on the non-
residential category as well as incorporating LED demand.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Next, the Housing Systems Business Division.
In FY2016, although sales were unachieved the previous year, we
achieved an operating margin of 4.0%.
By a further strengthening of remodeling products and the Living
Space Value initiative, this business division will work primarily on
accelerating the expansion of the remodeling business, which is
more profitable than the construction of new builds.
In FY2017, this business division will aim at 370 billion yen sales
and 16.4 billion yen operating profit, while incorporating the
impact from restructuring.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Thank you for your cooperation.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.