1. Ingeniería

Panasonic IR Day 2012
Eco Solutions Company
Business Strategy
May 23, 2012
Panasonic Corporation
Eco Solutions Company
President Shusaku Nagae
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “fiscal 2012” or “FY 2012” refers to the year
ended March 31, 2012. In addition, “fiscal 2013” or “FY 2013”
refers to the year ending March 31, 2013.
Contents
2
１．Outline of Businesses
２．Focuses in FY2013
３．Summary
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
1
Contents
3
１．Outline of Businesses
２．Focuses in FY2013
３．Summary
Outline of Business Domain Company (1)
Company Name
President
Eco Solutions Company
(Abbreviation: ES Company)
Shusaku Nagae
Business Lineup
R&D, manufacture, sale of electrical construction
materials, housing materials and equipment, ventilation
equipment and systems, and related installation
engineering and maintenance services
Business Vision
We provide our living environments that are ecofriendly and comfortable
Headquarters
4
1048, Kadoma, Osaka, Japan
Japan: Osaka, Tokyo, Niigata, Mie, Aichi, etc.
Principal Operating
Sites
Overseas: China, India, other Asian countries,
Europe and Americas etc.
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
2
Outline of Business Domain Company (2)
5
Eco Solutions Company
Promote group-wide
comprehensive solutions business
〔Main divisions〕
Panasonic Corporation
Panasonic Electric
Works Co., Ltd.
・Lighting Company
・Lighting Mfg. Business Unit
・Information Equipment &
Wiring Products Mfg. Business Unit
・Building Products Mfg. Business Unit
・Panasonic Electric Works
Power Tools Co., Ltd
・Electrical Construction Materials
Marketing Business Unit
・Building Products
Marketing Business Unit
SANYO Commercial
Equipment Systems Co., Ltd.
Panasonic Ecology
Systems Co., Ltd.
SANYO Solar Energy
System Co., Ltd
Panasonic Food
Appliances Co., Ltd.
*Overseas Sales Division
of SANYO’s Solar Products
*Started in FY2013
Organization
Company Profile
(FY2012 Consolidated Basis)
6
Eco Solutions Company
Sales： 1,525.8 billion yen
Number of Employees： 45,700
Corporate Division for
Comprehensive Solutions Business
Engineering Division/Manufacturing Innovation Division
Back office function under head office
Lighting
Business Group
Energy Systems
Business Group
Housing Systems
Business Group
Panasonic
Ecology Systems
Co., Ltd.
Manufacturing
Bases
Manufacturing
Bases
Manufacturing
Bases
Manufacturing
Bases
Osaka
Niigata
China
Other Asian Countries
Europe
The Americas, etc.
Mie
Aichi
Ibaraki
China
India, etc.
Shiga
Tochigi
Kagawa
China, etc.
Aichi
China
Hong Kong
Thailand, etc.
Marketing
Division
Global Marketing
Division
Sales Bases
Sales Bases
Shiodome (Tokyo), etc.
Overseas
5 sales Department
22 sales bases
Electrical
Construction
Materials &Housing
Products
: 130 bases
Showroom
: 61 locations
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
3
Our Business (1)
7
(Sales & number of full-time employees are based on FY2012 consolidated basis)
Lighting
Energy Systems
Sales: Approx. 220 billion yen
Number of employees: Approx. 13,300
Principal business:
・ Power components
・ System components
・ Power tools
Sales: Approx. 300 billion yen
Number of employees: Approx. 10,000
Principal business:
・ Residential lighting
・ Institutional and commercial lighting
・ Lighting source & devices
Housing Systems
Panasonic Ecology Systems Co., Ltd.
Sales: Approx. 270 billion yen
Number of employees: Approx. 3,300
Principal businesses:
・ Kitchen furniture, bathroom
and sanitary fittings
・ Interior furnishing & systems
・ Exterior products & systems
Sales: Approx. 120 billion yen
Number of employees: Approx. 5,100
Principal businesses:
・ Indoor air quality appliances
・ Ventilation equipment
・ Air, water and soil purification systems
Our Business (2)
FY2012
Sales by region
FY2012
Sales by segment
Others
Lighting
15%
20%
Other
1,525.8
Domain
billion
yen
24%
Companies
15%
Asia/Oceania India/Middle East 2%
2%
Europe 2%
China/ North
East Asia
North America
3%
2%
Energy
Systems
1,525.8
billion yen
8% 18%
Panasonic
Ecology
Systems Co., Ltd.
8
Housing
Systems
Japan 90％
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4
Features of Business (1)
9
Sell other domain companies’ products through strong sales channel with our
marketing department to lead group-wide growth
Note: overseas business currently limits in energy sector.
Appliance sector
Customers
Energy sector
Energy-saving
equipment
PV power
generation
system
Eco Solutions Company
Marketing Division
Industrial
air conditioner
Freezing
and refrigeration
showcase
Lighting
Storage
battery
system
Energy systems
System networks
sector
Door phone
Housing systems
Panasonic
Ecology Systems
Co., Ltd.
Security camera
Features of Business (2)
Strength
10
Challenges
Lighting
・ No.1 market share in Japan
・ Synergy in Integrated development
of lamps and lighting fixtures
・ Light distribution control and lighting software
technologies
・ Improve cost competitiveness
of LED lighting products
・ Expand business globally
Energy
Systems
・ No.1 market share in Japan
・ Development of electric construction
materials business in Asia
・ Cutting-edge energy management technology
・ Accelerate energy solution
business expansion
Housing
Systems
・ Foundation for group-wide entire home business
・ Development of products integrating
home appliances and housing equipment
・ Plastic molding and wood processing technologies
・ Expand business globally
・ Improve cost competitiveness
・ No.1 global market share of ventilation fans
・ Overseas manufacturing expansion
・ Air quality control environmental technologies
・ Expand environmental
engineering business
Panasonic
Ecology
Systems
Co., Ltd.
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
5
Features of Business (3)
11
Challenges
Strength
Marketing
Division
Global
Marketing
Division
Corporate
Division for
Comprehensive
Solutions
Business
・ Strong sales forces, sales channels
and IT systems
・ Proposal for solution by market with wide range
of products including other domain companies’
・ Installation and support of engineering companies
・ Differentiate from competitors
・ Strong sales channels of electrical construction
materials in India, Southeast Asia, South Korea
and Taiwan
・ Reorganization of sales channels with SANYO’s
energy-related sales companies
in North America and Europe
・ Further expand B2B sales
channels
・ Reinforce value chains
through M&A
・ Utilization of group-wide management resources
(technology, product development,
product linkage, M&A support, and
external affairs)
・ Achieve sales increase promptly
・ Support for accelerating
overseas solution businesses
FY2012 Results
Sales
(Create new value for customers)
Note: Excluding KMEW Co., Ltd. Results
Operating Profit
(yen: billions)
(yen: billions)
1,526.5
15,265
1,525.8
15,258
57.9
579
FY2011
2010年度
12
FY2012
2011年度
FY2011
2010年度
58.9
589
FY2012
2011年度
・ Maintained sales at same level as previous year’s with PV power generation systems
and LED lighting products offsetting impact from Great East Japan Earthquake and
flooding in Thailand
・ Increased operating profit thanks to cost reduction initiatives including
streamlining and structural reforms.
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
6
FY2012 Results
13
Increased sales focusing on environmental and energy related business
LED lighting for TOKYO SKYTREE ®
Launched energy management system
- Energy creation-storage linked system for home -
Power utilities
Lighting fixtures
for gold color
Solar Cells
Distribution
Panelboard
Lighting fixtures
for color of “iki”
Equipment Necessary
in Blackouts
Power station
(Tokyo SkyTree ® Lighting Test on April 19, 2012)
Lighting fixtures
for color of “miyabi”
Distribution
Panelboard
(for backup)
Lithium-ion
battery unit
Note: Conceptual drawing is for illustrative purposes only.
About the TOKYO SKYTREE ®
Business Operators: TOBU RAILWAY CO., LTD. & TOBU TOWER SKYTREE CO., LTD. / Design and Management: Nikken Sekkei LTD. /
Lighting Consulting: SIRIUS LIGHTING OFFICE INC (Lighting Design & Simulation) / Construction: OBAYASHI CORPORATION /
Installation of Lighting Equipment: Denki Kogyo Company, Limited
Today’s Contents
14
１．Outline of Businesses
２．Focuses in FY2013
３．Summary
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
7
FY2013 Forecasts
15
Note: Excluding KMEW Co., Ltd. Financial Forecasts
Sales
Operating Profit
(yen: billions)
(yen: billions)
16,000
1,600.0
58.9
589
60.0
600
2011年度
FY2012
2011年度
2011年度
2012年度
FY2013
2012年度
2012年度
15,258
1,525.8
FY2012
2011年度
2011年度
FY2013
2012年度
2012年度
・Increase sales with environmental and energy related products including LED lighting
and PV power generation systems
・Increase operating profit with sales growth and streamline, covering price decline of
LED lighting and raw material cost increase
Market Environment
16
・ Construction market modestly recovering with demand from reconstruction due to earthquake
・ Accelerate environmental and energy related business expansion with FIT and government
subsidies
Non-residential
construction starts forecast
New housing starts forecast
Japan
(Unit: Ten thousand m2)
(Unit: Ten thousand dwelling unit)
84.1
85.7
（+1.9%）
FY2012 FY2013
Index after adjustment of
delay in actual sales
4,050
3,486
(Unit: %YoY)
ECM 102.0
4,308
102.6
HME
（+6.4%）
100
FY2012 FY2013
101.6
100.7
FY2012 FY2013
ECM: Electrical Construction Materials
HME: Housing Materials and Equipment
■ GDP Growth Forecasts
Europe and America
Tough macro environment
Overseas
Asia
Economic growth losing
steam, still remaining
relatively high
US: +2.7%, EU： - 0.3%,
China: +7.5%, India: +7～7.5%
■ Accelerate introduction of
renewable energy
(PV: accelerating demand shift from
Europe to Asia & North America)
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
8
Strategy for FY2013
17
Eco Solutions Company Strategy
Environmental and
energy-related
business
Increase sales of environmental and energy
related products
Accelerate Global Sales Growth
Global Business
business
Comprehensive
Solutions
solutions business
Business
EnvironmentalEnvironmental andand
Energy-related
Energy related
Business
Create comprehensive solutions business to
achieve sales increase
Environmental and Energy Related Products (1) 18
Differentiate from competitors: Provide comfortable living environment,
integrating group-wide range of electrical construction materials, housing
equipment and materials, home appliances and cutting-edge linking technologies
‘Ａｃｔｉｖｅ’ Energy Management
‘Ｐａｓｓｉｖｅ’ Energy Management
Create, store and use electricity
Create
Create
Energy
Energy
PV Power
Generation Systems
Save
Save
Energy
Energy
Preserve comfortable environment,
harmonizing with Nature
LED Lighting
Sales Target
vs LY:+72%
Sales Target
vs LY:+32%
(Generation Capacity Basis)
ＥＭＳ
ＥＭＳ
Smart Power
Distribution
Sales Target
vs LY:+20%
Store
Store
Energy
Energy
Storage Battery
Systems
Light
Light Shielding
Shielding with
with
natural
natural light
light
Roofing
Materials
Heat
Heat Insulation
Insulation //
Heat
Heat Shielding
Shielding
Natural
Natural air
air
Exterior
Finishing
Materials
Interior
Furnishing
Materials
Building
Frames
Sales Target
vs LY:+400%
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
9
Environmental and
Energy related
Business
Environmental and Energy Related Products (2) 19
PV Power generation systems/
storage battery systems
LED Lighting
■ Accelerate product development
focusing on highly value added
and affordably priced
■ PV Power generation systems
[Japan]
・ Sales target +61% (vs L/Y)
(Generation Capacity Basis)
・ Sales target for residential house +34% (vs L/Y)
aiming top market share
(Generation Capacity Basis)
・ Utilize Panasonic’s
sales channels including electrical
construction materials, housing materials and
equipment, home appliances, and specialty
shops
・ Further expand sales of ‘HIT240/233’
with industry's top-level power
generation efficiencies
[Japan]
・ Create comfortable and eco-conscious
lighting products for ‘quality of light’ and
‘control of light’
・ Maintain top market share with
wide product lineup with approx. 4,000 items
(Doubled vs L/Y)
[Overseas]
・ Continuously Launch products
with competitiveness
・ Reinforce brand of Panasonic
in LED lighting market
■ Storage battery systems
[Japan]
・ Expand sales of ‘energy creationstorage linked typed’ products with PV power
generation system, and products for
commercial market including disasterprevention facilities
・ Utilize government subsidy
・Sales target +400% (vs L/Y)
■ Improve profitability with
horizontal development:
・ Streamline of designing
・ Reduce costs of related materials and
components
Global business
20
Accelerate Global Expansion (1)
Globally expand solutions business,
enhancing sales channels
Overseas sales target
approx. 210 billion yen
+40% (+6%*) vs L/Y
Overseas
sales ratio
FY2012
FY2013
10%
13%
(plan)
*Note: Exclude new consolidation effects
Global Marketing Division (Newly Established)
Eco Solutions Domain Sales companies: 14
Eco Solutions Sales divisions: 8
Major Initiatives
China and Northeast Asia Sales Division
・ Strengthen product lineup in electrical construction
materials, housing materials and equipment businesses
・ Reinforce solutions business
Asia and Oceania Sales Division
・ Further enhance sales channels of electrical
onstruction materials
India and the Middle East Sales Division
・ Develop electrical construction
aterials business in non-residential market,
acquiring Firepro Systems Private Limited
Americas Sales Division
・ Solar and LED video signage business
Europe and CIS Sales Division
・ Solar and Energy Solutions Business
c
m
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10
Global Business
Accelerate Global Expansion (2)
21
Overseas
Overseas sales
sales ratio
ratio by
by business
business group
group （FY2012
（FY2012 →
→ FY2013）
FY2013）
Lighting
Business Group
Overseas sales
+8%
19％ → 21％
Business development
by product/region
Housing Systems Focus on China
Business Group
・ Lamp including LED & energy
saving bulb type fluorescent lamp:
promote global expansion
・ Lighting fixtures:
Focus on China and other Asian
countries
・ Lighting devices including
LED modules & circuit boards:
Enhance business in Europe
and US
+8%
+19%
3.5％ → 4.2％
materials in Asia
+14%
・ Enhance sales in
India, China, Indonesia, Vietnam
・ Sales Target in Asia +18%
24％ → 25％
Comprehensive
Solutions Business
・ Expand interior furnishing &
systems business
・ Sales target +20%
・ Enhance collaboration with
developers
Panasonic
Improve global market
Ecology Systems share of indoor air quality
Co., Ltd.
Overseas Sales applianceｓ
Energy Systems Toward No.1 market share
Business Group of electrical construction
Overseas sales
Overseas sales
・ Boost sales of air purifiers
in China
・ Maintain No.1 global market share
of ventilation fans
・ Expand ceiling fan business
27％ → 32％
Comprehensive Solutions Business
22
‘Solutions’: to solve customers’ problems
with both hardware and software technologies
Create new value with customers
Offer customer lifetime value
Creating Value
Offer new additional value
by linking individual equipment
Provide variety of high value-added products
Continuing Value
3
Linking Value
paradigm
shifts
Combined Value
1. Individual product oriented
→ Solutions & systems oriented
2. Japan oriented
→ Globally oriented
3. Establish sustainably profitable
structure through ‘value chain’
business models
1. Create ‘100 arrows’
Major
Initiatives
2. Promote company wide projects
3. Develop strategic products
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
11
Comprehensive
Solutions Business
Comprehensive Solutions for Entire Home
23
‘100 Arrows’ project
‘Techno Structure’ providing comfortable and eco-friendly life and provide
sense of security to customers with less utility costs
‘Techno Structure’: Panasonic’s original cutting-edge earthquake resistant
construction method
Create ‘combining value’ & ‘linking value’
Create ‘continuing value’ & ‘creating value’
Ａｃｔｉｖｅ energy
management
Housing
Housing
Equipment
Equipment
Grid
Grid
Linkage
Linkage
Cultivate
Cultivate
potential demand
demand
potential
Outside
Outside
Linkage
Linkage
Active
Housing
Housing
Materials
Materials
Upgrade installation
& Engineering
Energy
Creation
Energy CreationCreationStorage
Storage Linkage
Linkage
Collective proposal
V2H
V2H
Service
Establish new business foundation
Passive
Passive energy
management
Create
Business
New service business
Home
Appliance
Home ApplianceApplianceLinkage
Linkage
Cloud
Cloud
Server
Server
Expand business
into smart town
- Bulk order of high-voltage reception service
- Supply and demand adjustment service
Comprehensive
Solutions Business
LED Video Signage Business (US)
24
‘100 Arrows’ project
Meet demand from entertainment facilities and cuttingcutting-edge energy solutions
with our LED video signage solutions
POS
Security
Camera
Regal Cinema
Services
Upgrading
System
Display
On-site promotion structure
Installation & Engineering
STAPLES Center Infineon Raceway
Video Picture
System
Expand product lineup maximizing customers’ value
LED Signage
Establish on-site promotion
Energy system
Energy System
Video picture system
Create ‘continuing value’ & ‘creating value’
Designing & Building System
Create ‘combining value’ & ‘linking value’
Develop markets
Sports
Facility
Entertain
- ment
Facility
Commercial
Facility
・・・
Expand business
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12
Comprehensive
Solutions Business
Dalian Best City (China)
25
Corporate Project
Meet demand from Chinese government energyenergy-saving initiatives
to achieve comfortable and healthy lifestyles
Air
Quality
Services
Upgrading
System
Air Conditioning
Installation &
Engineering
Primary interior
decoration
Joint Venture Companies
Designing
Skeleton
On-site promotion structure
Manufacturing
New condominium market
- Energy
- Air conditioning
- Air quality
Power
HEMS Measuring
Interior Materials &
Equipment Installed
House
Interior decorated
condominium
Create ‘continuing value’ & ‘creating value’
Energy
Create ‘combining value’ & ’linking value’
Local structure for development,
manufacturing and sales
In future
Dalian Best City
取扱商材拡充で提供価値を拡大
Expand
product lineup to maximizes customer’s value
・Total area: 65 km2
・Total building
area:1.2 million m2
Comfortable, healthy and air-conscious houses
Today’s Contents
26
１．Outline of Businesses
２．Focuses in FY2013
３．Summary
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
13
27
Summary
Toward our target in FY2013
■ Steadily capture demand for energy solutions in Japan
■ Establish foundation for energy solutions business focusing on
electrical construction materials business in Asia and
PV power generation system in Europe and US
■ Accelerate comprehensive solutions business to contribute
to group-wide sales
Mid to long-term Goal
Expand value chain globally and
comprehensive solutions business
leading group-wide growth
28
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
14
Disclaimer Regarding Forward-Looking Statements
This 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 U.S. 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 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 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; natural disasters including earthquakes, prevalence of infectious diseases throughout the world and other events
that may negatively impact business activities of the Panasonic Group；as well as direct or indirect adverse effects of the Great East
Japan Earthquake on the Panasonic Group in terms of, among others, component procurement, manufacturing, distribution,
economic conditions in Japan including consumer spending and sales activities overseas, and direct or indirect adverse effects of
the flooding in Thailand on the Panasonic Group in terms of, among others, component procurement and manufacturing. The
factors listed above are not all-inclusive and further information is contained in Panasonic‘s latest annual reports, Form 20-F, and
any other reports and documents which are on file with the U.S. Securities and Exchange Commission.
29
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.
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
15