Home Appliances Company Growth Strategy

Transcription

1 0 Home Appliances Company Growth Strategy September 29, 200 Home Appliances Company Kazunori Takami Ⅰ.Introduction Ⅱ.Vision for the Future Ⅲ.Main Initiatives in GT2

2 2 Ⅰ.Introduction Ⅱ.Vision for the future Ⅲ.Main initiatives in GT2 Manufacturing & Sales Products 3 Cooking Home appliances field IH cooking heaters Rice cookers Water boilers Juicers Microwave ovens Heating/Refrigeration field Refrigerators Vending machines Devices field Diaphragm gas meters House work Garbage disposals Vacuum cleaners Irons Washing machines Dish washer /dryers Seasons Water-related equipment Electric Heating equipment Sanitary equipment Air conditioning & boiler CO2HP boilers Air conditioners Ultrasound wave Gas meters (USM) P Modules Car devices Household fuel cell Motors Magnetrons Compressors for refrigerators Heat exchangers Compressors for Vacuum air-conditionings thermal insulators Compressors for car air-conditioners 2

3 HA Company in Panasonic Group 4 Sales by business segment (FY200 results) PEW and PanaHome 9% Others6% Components and Devices 2% Digital AVC Networks Home Appliances 3% 40% Operating profit 4% 8% 5% 27% 36% Sales in Home Appliances business segment Panasonic Ecology Systems Co., Ltd. Lighting Company 8% HA Company Source:Panasonic consolidated financial results Sales Structure of HA Company 5 3 Major products (air conditioners, washing machines & refrigerators) account for 45% Vending machines 2% Gas meters 2% Dish washers 2% Others 6% IH cooking heaters 3% Air conditioners 23% Vacuum cleaners 4% EcoCute 4% Small cookware 5% Washing machines % 45% Compressors for refrigeration 6% Microwave ovens 6% Refrigerators % Motors 7% Compressors for air conditioners 8% *based on business plan for FY20 3

4 Sales & Overseas Sales Ratio of HA Company 6 Overseas sales* ratio is approximately 50%, affected by worldwide recession in FY2009 (billions yen) Sales Overseas 47% 50% 53% 5% 49% Japan 53% 50% 47% 49% 5% FY2006 FY2007 FY2008 FY2009 FY200 *overseas sales = manufactured and sold in overseas markets (excluding motor business) Major Products Positioning (Market share in units) 7 Received strong acceptance by consumers in Japan and Asia Japan China Indonesia Malaysia Air conditioners Refrigerators Washing machines Microwave ovens Vacuum cleaners (FY200 Panasonic s estimation) 4

5 Major Manufacturing Sites of HA Company 8 43 manufacturing sites as of Sep. 200 ( ) = changes since starting operation in Apr Europe 2 sites (±0) U.K. Germany China 5 sites (+4) Wuxi Suzhou Guangzhou Shanghai Zhuhai Hangzhou India Malaysia Thailand Singapore Asia 5 sites (- 4) Japan 8 sites (- 4) Taiwan Philippine Vietnam Indonesia S. America site (±0) Brazil N. America 2 sites (±0) U.S.A Mexico Integration of Manufacturing Sites in Japan (FY2008-FY20) 9 Integration to Kusatsu Japan: 2 to 8 manufacturing sites All technology and BU* functions moved to Kusatsu *Business unit Higashi Oumi Kobe Kato Toyonaka (HQ, washing machines) Kusatsu Daito Narakita Shizuoka (Research center) Nara Tokyo (HQ, Panasonic Food Appliances) Fujisawa (Compressors for refrigeration) Kofu (Compressors for air conditioners) 5

6 0 Ⅰ.Introduction Ⅱ.Vision for the future Ⅲ.Main initiatives in GT2 Environment of Home Appliance Business Stable growth in appliance demand is expected (CAGR+2.8%) -CAGR+5.2% in emerging countries while demand in Japan slows down to +.3% -Downward trend in prices continues globally (major finished products: 3-6% down/year) -Accelerating environmental and resources issues (prevention of global warming, demand for recycling resources) Roles of HA Company -Capture growth in emerging markets -Secure stable profitability -Increase contribution to saving and creating energy Demand in appliances (US billion $) By region 0 2 FY0 FY3 Average growth/y Total +2.8% 3 Europe and USA +2.% Asia +5.4% Emerging +5.2% Japan +.3% 年 FY度 (unit: US billion $) 0.0 (Panasonic estimation) By product FY0 FY3 Average growth/y FY 年 度 Total +2.8% Washing machines +.9% Air Conditioners +4.2% Refrigerators +.4% 6

7 HA Company Vision for the Future 2 Aim to be the No. Green Innovation Company in Appliances in 208 -achieving significant growth of HA Company in FY203- B to C FY Establish foundations to be the Global No. Equipment, Devices BEnvironment & Energy tob Energy Creation, Energy Management EV related Business Hot water Heating Large Air Conditioning Today Major finished products Total electrification In Japan, China & Asia Regional Company Energy Creation Energy Saving Recycling resources FY203 Significant growth of HA Company Global Company FY209 The No. Green Innovation Company in Appliances Sales 970 billion Localization in India, expansion in Brazil, full-scale business in Europe Strengthening operations in Japan/China/Asia Major Finished products Midterm Management Plan 3 Management target in FY203 Sales: 970 billion yen (CAGR 5.3%) Capturing growth in the emerging markets, at the same time shifting business structure to BtoB & environment/energy fields Major initiatives. Capturing high-volume segment and evolution of global business 2. Expansion of BtoB business (equipment/devices) 3. Business creation in environment and energy fields (yen: billions) *including motor business Sales plans* Strengthening manufacturing ability 5. Acceleration of environmental management 200 Result 20 Plan 202 Plan 203FY Plan 7

8 Business Structure Changes 4 Direction of change. Growth in overseas sales (5% per year) 2. Expansion of BtoB business (equipment/devices) 3. Business creation in environment and energy fields Sales (yen: billions) Environment/energy Devices Equipment Overseas sales (5% growth per year) Finished products FY200 Result FY203 Plan 5 Ⅰ.Introductions Ⅱ.Vision for the Future Ⅲ.Main Initiatives in GT2 8

9 6.Growth Strategy () Capture Emerging Markets high-volume segments (2) Expansion of BtoB Business (3) Business Creation of Environment & Energy Steps to Address Emerging Markets 7 In addition to Europe, overseas business expands to India & Brazil Step 2 Step 3 Localization in India Creation of new demand Expansion in Brazil Capture Brazil market with global operation Step Expanding business in Europe Utilization of external resources Boost Sales in Indonesia & Vietnam Strengthening Business in Japan/China/Asia Foundation of core overseas production sites

10 (yen: billions) 300 Sales Plan by Region (Finished Goods) Emerging markets vs.fy0 +7% Sales proportion 24% 32% (yen: billions) 300 Asia vs.fy0 +39% 8 Sales proportion 2% 3% 0 (yen: billions) 300 FY200 Japan FY203 Emerging markets: BRICs+V, MINTS+B Sales proportion 48% 40% 0 (yen: billions) 300 FY200 Europe FY203 Asia: excl. China and India Sales proportion 6% 8% vs.fy0 +4% vs.fy0 +70% 0 FY200 FY203 0 FY200 FY203 Increase Market Share with High-Volume Segment Products 9 Increase market shares in emerging markets by launching high-volume segment & creating new markets Market share in 202 (vs. 2009) Airconditioners Refrigerators Washing machines Microwave ovens Vacuum cleaners :increase market share by more than 5% :increase market share by more than 3% China 200 Dec. Refrigerators 2-door direct cooling Asia Europe India 200 Apr. 0/4 Full automatic 全 自 洗,490 元 Chinese st class water-saving 中 国 節 水 等 級 200 Oct. Microwave ovens Inverter model Expanding product line-up 200 Sep. Vacuum cleaners in variety colors Latin America Air conditioners Capturing highvolume segment products Volume-zone segments proportion in % 50% 9% 4% 45% 0

11 Capture High-Volume Segments (Pulsator Washing Machine in China) 20 (yuan) More than 2,500 22% 24% 2,500 2,000 2,000,500 28% Market share 30% 34% 37% % 20% 34% Industry proportion Chinese pulsator Full automatic washing machine Price,490 yuan Launch 200 April Product s features under,500 2% +6 8% 35% The first Chinese industry st class water-saving washing machine in high-volume segment High washing performance with Dancing water flow feature Establish Production Sites (): India 2 Expand Indian market, collaborating with Panasonic Groups L :LG factory sites S :Samsung factory sites S L New Delhi Panasonic Mumbai L Chennai S Panasonic Strengthen lifestyle research Research center for marketing in high-volume segment Expand market with fully lineup products Air conditioners, Refrigerators, Rice cookers, Washing machines, Microwave ovens, Cooking appliances

12 Establish Production Sites (2): Brazil Expand Brazilian market, utilizing overseas sites 22 Cooperating HA (Business unit) PTW (Subsidiary in Taiwan) PANABRAS (Subsidiary in Brazil) R&D for base model products development R&D and assist production for local products R&D and production for local products L E W Manaus Panasonic W Panasonic W E San Jose E Critiba W Joinville W :Whirlpool factory sites E L :Electrolux factory sites :LG factory sites Expand market with new products Washing machines, Refrigerators, Microwave ovens Establish Market in Europe 23 Strengthen European market by establishing eco technology, utilizing local OEM products Price 高 High 級 Refrigerator Washing machine 200 年 FY20- 度 以 降 large-size Price 200 年 FY20- 度 以 降 High 高 級 Middle 中 級 Increase product lineup Middle 中 級 Increase product lineup 普 Low 及 OEM OEM 普 Low 及 OEM OEM 2

13 Expand Cooking Appliance Market 24 Expand overseas market for rice cookers and cooking appliances (+5%( per year) Rice cooker +20% per year Launch 2 affordable-priced models with microcomputer technology Start to manufacture in India, sell and export Indian products Cooking appliance +2% per year -launch 2 new series- Premier series for Middle East and Russia Blenders, juicers, bread makers, coffee machines, meat grinders Mass-market series for China, Asia, Middle East and Russia Handy blenders, toaster ovens, coffee machines, sandwich makers, kettles, pop-up toasters 25.Growth Strategy () Capture Emerging Markets & high-volume segments (2) Expansion of B to B Business (3) Business Creation of Environment & Energy 3

14 Expand Air Conditioning Business 26 Expand air conditioning business, launching large-size air conditioners, heat pump hot-water heatings A/C (horsepower) Residential use Room Packaged Expand large-size products in Europe and China RAC PAC Commercial use Commercial use Eco-cute Enter European market Mini VRF(4-6HP) Eco-cute Existing business HP hot-water heating Hot-water heating (kw) Note: hoursepower=2.8kw air conditioning capability Strengthen Products in Japan Expand Japanese market, creating demand and strengthening our marketing FY200 年 度 0 FY20 年 度 FY202- エHigh コ 高 級 Middle キ中 級 ュ ー Low 普 及 ト IHCH heater Eco-cute IH cooking Built-in dish washer Energy saving No. Launch new products For shops Durable Leg covered Add more functions Compact, affordable-priced energy saving Low capacitance offering to complex housing Specialized for replacement compatible for different size Expand mass market Differentiation cost-reduction Increase Product lineup 4

15 28.Growth Strategy () Capture Emerging Markets high-volume segments (2) Expansion of B to B Business (3) Business Creation of Environment & Energy Fuel Cell: Energy Creation Expand Japanese market and enter European market 29 GP3 GT2 FY200 FY20 FY202 FY203 FY204 FY205 FY206 Start sales Expand Spread out JAPAN Start Sales for house and complex housing for city gas and LP gas Lower-priced Global base model Europe Residential use System assessment, field test Sales, supply chain, customer service 5

16 Gas Smart Meter in Europe: Energy Management 30 Start field test with European gas companies to enter European market :HA products Ultrasonic Meter (USM) Existing Diaphragm Meter Repeater Meter I/F Power pole Meter I/F Concentrator Gas meter Repeater Concentrator Satellite GPRS Data gathering Billing CRM MDMS WEB Gas company Center Server Field test with European gas companies GrDF (France) Network-Linked Products 3 Offer network-linked solution, connecting between products and servers Product Server Between servers Housing products products Local server AV products Our values Home appliances Energy-saving Convenience Smart Energy Gateway Internet Solution for entire house Renewal program Using server Panasonic server Providers server Solution for entire town Cooperate with service providers Service in communities 6

17 32 2.Strengthening Product Competitiveness Enhancing Marketing 33 Maximize profit with effective R&D based on local market needs Marketing process Data gathering -customers -macro market -competitors Analysis Forecast Plan -customers -competitors Form hypothesis for product and marketing strategies Lifestyle research Build-up Products strategies -target customers -product concept Sales channel Promotion Strategies Plan group products Design group strategies Design individual products -Standardization -Divide products into blocks Development of products in group 7

18 Find potential needs of High-Volume Segment Strengthen lifestyle research overseas 34 Japan Develop strategies and strengthen R&D Domestic lifestyle research R&D for universal technologies and Create new business R&D for base models and global products Europe European lifestyle research China Chinese lifestyle research R&D for base models R&D for Chinese products Asia Asian lifestyle research R&D for Asian and Indian products R&D for Middle Eastern products Develop Product with Base Models 35 Base models + developed models = effective R&D Price Market High-volume segment Developed models Base models Developed models (V products, value-added products) Specified for local customers needs anti-bacteria, deodorizing exterior design & materials design Ex. nanoe + Base models Globally universal 2-3 year duration Maximum basic function Differentiation Block + Basics Block BB technology Fundamental performance tech. Ex. compressor, motor Sales unit Develop group products and cost reduction Basic chassis 8

19 Strengthening Environmental Conscious Technology 36 Create next-generation products, strengthening three environmental-conscious technologies Heat pump Inverter Exterior BB Environmental conscious materials Energy-saving devices Whole inverter installed products Luxury exterior with reducing paint and recycled plastic Metallic & pearly form Laminated decoration Grow with environmental-conscious products Develop New Forming Method 37 Develop new forming method, reducing paint and materials with highly graded exterior Metallic メタリック 成 形 Value-added decoration Laminated Glossy Grade Universal Bicolor H&C Printing Evaporation Laminated Glossy Coating Metallic Variety Foamed 9

20 FY20 Business Plan and H Forecast 38 Sales of FY20 H is expected to increase 2% from last year. We will proceed GT2 achieving full-year plan. (bil. yen) Japan FY20(full-year) Business plan 470 vs. FY200-3% FY20(H) vs. FY200 +0% Overseas 50 +6% +6% Sales (Local currencies) Total % +% +2% +2% (Local currencies) +2% +4% Disclaimer Regarding Forward-Looking Statements This presentation includes forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 933 and Section 2E of the U.S. Securities Exchange Act of 934) 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 934 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 acquisition of all shares of Panasonic Electric Works Co., Ltd. and SANYO Electric Co., Ltd. through tender offers and share exchanges; 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 reports, on Form 20-F, and any other reports and documents which are 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, 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