avc networks company business policy - panasonic · pdf fileavc networks company business...
Post on 15-Mar-2018
220 Views
Preview:
TRANSCRIPT
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
AVC Networks CompanyBusiness Policy
May 21, 2014
Panasonic CorporationAVC Networks Company
President Yoshiyuki Miyabe
Panasonic IR Day 2014
Notes: 1. This is an English translation from the original presentation in Japanese.2. In this presentation, “fiscal year 2015” or “FY15” refers to the year ended March 31, 2015.
Contents
1. FY14 Results
2. FY15 Business Plan
3. Toward FY19
4. Summary
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
Contents
1. FY14 Results
2. FY15 Business Plan
3. Toward FY19
4. Summary
<FY14 Result>
Sal
es due to termination of unprofitable businesses despite stable growth in BtoBbusiness and positive impact of exchange rates. O
pera
ting
Pro
fit
Slightly decreased Increased
1,621.4(yen: billions)
Sales
OP(%)
8.3(0.5%)
21.5(1.4%)
1,573.4
FY13 FY14
1,690.0
FY14plan
30.0(1.8%)
FCF -20.2 -21.0 -13.0
3 / 27FY14 Annual Results (AVC Networks Company basis)
restructuring of unprofitable businesses and positive impact of exchange rates contributed to profit improvement.
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
1,835.7
-31.6(-1.7%)
8.8(0.5%)
1,780.5 1,830.0
24.0(1.3%)
4 / 27S
ales
Ope
ratin
gP
rofit
Slightly decreased Increased
<FY14 Result>
(yen: billions)
Sales
OP(%)
FY13 FY14 FY14plan
due to termination of unprofitable businesses.
improved by 40.4 billion yen throughconsolidated sales and manufacturing management style.
FY14 Annual Results (Sales & production consolidated basis)
【Businesses transferred】・TV Set business・Audio/Video/AV accessory business
Former organization New organization
AVC NetworksSegment
Sales : 1,573.4
OP : 21.5
Sales : 1,219.3
OP : 20.4FY14Sales/Operating profit
Changes in Organization (from 1st April, 2014)
■ Transfer consumer businesses into Appliances Company
5 / 27
(yen: billions)
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
Contents
1. FY14 Results
2. FY15 Business Plan
3. Toward FY19
4. Summary
●Management
Organization of AVC Networks Company (As of April 1, 2014)
PresidentYoshiyuki Miyabe
7 / 27
AV
C N
etw
orks
Com
pany
Employees: approx.36,000 people([Domestic]:approx.19,000 [Overseas]:approx.17,000)
System Solutions Company (Japan)
Panasonic Liquid Crystal Display Co., Ltd.
R&D Division
Business Development Center
IT Products BD
Storage BD
※
Infrastructure Systems BD
Avionics BD
※
※Division affiliated with Panasonic System Networks Co., Ltd.BD= Business Divisions
Security Systems BD
Visual Systems BD
Imaging Network BD
※
Office Products BD
Communication Products BD
Panasonic Mobile Communications Co., Ltd.
※
※
SVPYasuji Enokido
System Solutions Business
SVPToshiyuki Takagi
System Products BusinessPresident, Panasonic System Networks Co., Ltd.
Vice PresidentTakuya Sugita
Imaging Network Business
SVPPaul Margis
Avionics Business
Vice PresidentTatsuo Katakura
System Solutions Company (Japan)
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
4 Core Businesses 8 / 27
※1
BtoB Customers
Japan & Overseas system engineering or sales companies
Sales(Proportion %)
145.0bn yen
12%
Sal
es/S
I
※2
Visual & ImagingBusiness
304.0bn yen
25%
MobilityBusiness
216.0bn yen
18%
Cor
e B
usin
esse
s
Vertical SolutionBusiness
305.0bn yen
25%
CommunicationBusiness
※1 SI= System Integration※2 FY15 Business Plan(New Organization base)
【Business Divisions】・Office Products・Communication
Products
【Business Divisions】・Imaging Network・Security Systems・Visual Systems
【Business Divisions】・IT Products・Storage
【Business Divisions】・Infrastructure Systems・Avionics
9 / 27FY15 Management Targets
Double OP in FY15 vs. FY14
FY14(Results)
FY15(Business Plan)
vs. FY14
Sales 1,219.3 1,231.0 +1%
Operating profit(%)
20.4(1.7%)
43.0(3.5%)
+22.6
FCF -23.5 -22.5 + 1.0
(yen: billions)
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
FY15 Sales Compositions
【Sales 】
■ Offset negative impact of termination of unprofitable businesses by growth in core businesses, and turnaround toward growth direction
Core Businesses Growth %
2012 2013 201414FY
1,219.3 1,231.0
●Communication business
●Visual & Imaging business
●Mobility business +12%
+8%
-1%
●Vertical Solution business +13%
Cor
e B
usin
esse
s
13FY
-21%
10 / 27
15FYBusiness Plan
(Ceased PDP, & stopped BtoC
Smartphone R&D etc)
(yen: billions)
FY
14
-21.1
+41.0
+11.0
20.4
43.0
FY
15
(Bus
ines
s P
lan)
-8.3
12.1
FY
14(a
ctua
l)
Sal
es d
ecre
ase
due
tore
form
ing
unpr
ofita
ble
busi
ness
es e
tc
Term
inat
ion
ofgr
oup
spec
ial c
ount
erm
easu
re
Sal
es g
row
th o
fco
re b
usin
esse
s
Pos
itive
impa
ct th
roug
hre
stru
ctur
ing
unde
rper
form
ing
busi
ness
11 / 27FY15 Operating Profit Analysis
(yen: billions)
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
Rebuild LCD Panel Business 12 / 27
■ Accelerating transformation to businesses where we can differentiate from our competitors.
● Higher profitability can be expected in BtoB
Feature of Biz area and our strengths
For TVs For ITs(Tablets, note
PCs)
For Biz(Medical,
Broadcast,Carsets)
MarketCondition
Profitability
Require-ment or
Spec
CommodityToward
commodityNiche & Custom
A wide use Normal Special, High
Low Middle High
● Fullfil BtoB customers’ needs such as large screen and low power consumption etc through our advantage with consolidated engineering and productions operation in Himeji, Japan.
●Shifting portion from IT to business category
Proportion of LCD Panel Sales
2011 2012 2013 2014FY12 FY13 FY14 FY15(Forecast)
ForTVs
ForITs
For Biz
[LCD Panel sales proportion%]100%
0%
20%
60%
70%
Non-TVsProportion
■ Improve profitability in FY15 with positive impact of restructuring and increase panel sales for non-TV applications
■ Cut deficit more than 90% vs. FY12
Improve Operating Profit in LCD Panel Business
Op
erat
ing
Pro
fit
※
13 / 27
FY12 FY13 FY14 FY15(Business Plan)
Incr
easi
ng p
anel
sa
les
for
Non
-TV
s
Pos
itive
impa
ct o
fre
stru
ctur
ing
and
redu
ctio
n of
fix
ed c
osts
Cut deficit more than 90% vs. FY12
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
■ Strengthening business structure and focusing on the business field,utilizing our advancement
Rebuild DSC Business
Initiative in FY15
●Strengthening business structure・Create synergy by combining BtoB & BtoC video camera
business-optimize the structure by unifying R&D and sharing main device
・Reduce total fixed cost by approx.20% by cutting
development models in half
●Shifting to new business areas by utilizingtechnical advance
・4K videos-pick up high quality still picture from 4K video
・External device sales-expand external sales for cars, security cameras and
mobile terminals with black-box technology such as
optical design ability and molding method of nonspherical lens
14 / 27
FY13 FY14 FY15(E)
Market Demand for Digital Still Cameras
90.36
66.23
53.09
DSLR
Compact(Leader)
Compact(High-end)
-69%
-12%
FY13->FY15(E)
【DSC demand in units】
Mirror-less
: Panasonic share
10.8% 10.3% 10.5%
12.6% 9.1% 9.6%
5.8%
3.0%1.3%
6.8%
4.9%
4.9%
※
※black-box technology is a unique technology Panasonic owned that is hard for others to copy
●Shifting to higher profitable models
・Focus on compact (high-end) / mirror-less
FY15return to the
black
■ Aiming to return to the black in FY15 through fixed-cost reduction, shifting to high-end of models and external device sales increases etc
Improve Operating Profit of DSC Business 15 / 27
Op
erat
ing
Pro
fit
FY14 FY15(Business Plan)
Red
uce
fixed
cos
t
Pos
itive
impa
ct o
fex
chan
ge r
ates
and
rest
ruct
urin
g
Impr
ovin
gm
argi
nal p
rofit
・Shifting to high-end of models・External device sales(New business)
・Fixed cost in R&Dand production sites
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
Contents
1. FY14 Results
2. FY15 Business Plan
3. Toward FY19
4. Summary
Future of AVC Networks Company■ Offering solutions to B2B customers directly by combining AV and ICT
- contributing to smart society in cloud era -
『AVとICTの融合で顧客直結の企業・法人向けSolutionを提供』~ クラウド時代におけるスマート社会の実現に貢献 ~
FY14 FY19 FY15
1,219.3
1,600.0
Pan
ason
ic t
otal
targ
et in
Bto
Bso
lutio
n2.
5 tr
illio
n ye
n
System Solution
Product Solution
Box (Hardware)
Bto
Bcu
stom
ers
sles
1.5
trill
ion
yen
17 / 27
■ FY2019 consolidated company sales target in BtoB Solutions:2.5 trillion yen. Of which AVC target: 1.5 trillion yen.
Others (Display panels etc) Mak
e le
vel o
f Sol
utio
n up
with
com
petit
ive
prod
ucts
1,231.0
(yen: billions)
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
Core Business Direction
Evolving big data & intelligence in videos “ICT-oriented field” will expand due to wireless evolution
Communication
Strengthen solutions with “High speed”, ”Wide range” and ”Wire-less”Cognitive wire-less
18 / 27
Vertical Solution
Strengthen direct solutions to customers based on competitive hardware
Visual & Imaging Mobility
SmartIntelligence
“Prediction & forecast”“Offer optimum business”
Photographing& viewing Analysis
Action
Crime
Mark-eting
“Security & disaster prevention”“Identification & sharing”
Back-office Front officeField
Adapting “environment”to “hardware”
Adapting “hardware”to “environment”
DECT
WiGig LTE-Advanced
■ Accelerate evolution of “Visual & Imaging” by combining “technology”, ”know-how” and ”sales asset”,
■ Offer solutions to various customers based on wade-rage of product line-up
Enhance Solutions with Competitive Products (Integrated security)
Realize wade-rage of products through combining technologies and assetsthrough organization reform
Value model
Entry model
IP(previous SNC)
IP technologyProcurementR&D
Image Analysis(previous SNC)
Image analysisFace recognitionQuality image
System know-how(previous AVC)
for PoliceSearch imageFile evidence
×
Module(previous Sanyo)
Technology/sales asset
Customer-touch-pointDesign
× ×
360 degreewide rage
Dome type
Outdoor
Indoor゚
Outdoor
Wire-less camera
Outdoor
Full HD
Entry
In Car Video
entry & exit management
camera module
※previous System & Communications Company/previous AVC Networks Company united in 1st April, 2013
※ ※ ※
Network camera : global share 10% (No.2)Server for
face recognition
19 / 27
Visual & Imaging
※IMS Research 2013※
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
Increase product line-ups in TOUGHBOOK+TOUGHPAD(5”-20”) to strengthen ICT-use in outside
■ Strengthen ICT –use for outside tough environment with “communication”, “rugged”, “business know-how”■ Resolve customers’ problems based on competitive hardware that others cannot imitate
Business know-how(former SNC)
5 inch 7 inch 10 inch 20 inch13 inch
Close-to-customer
Mobile wireless communication
(former PMC)
Super small antenna3G/LTE
Rugged & long time battery(former AVC)
Slim sizingLight sizing
× ×
4K tabletRugged tablet
※ ※※
※previous Panasonic Mobile Communications Co., Ltd.(applying wireless-communication related to BtoC smartphone to TOUGHBOOK+TOUGHPAD)
Sales capability
Global share 60%(No.1)
20 / 27
Global share 39%(No.1)
Mobility
※VDC Research 2013 Q4
※
※
Enhance Solution with Competitive Products (TOUGHBOOK+TOUGHPAD)
※previous System & Communications Company/previous AVC Networks Company united in 1st April, 2013
Expanding Solution Business■ Create direct solution business to customers in the industries that our advance could be
utilized■ Build the success model with partners, developing global expansion by N times
21 / 27
Vertical
En
han
ce s
olu
tio
n
wit
h c
om
pet
itiv
e p
rod
uct
s Improve customers’ value collaborating with industry partners
【e.g.: test/demonstration with convenience store】
In-shop SignageIntegrated Security
Image analysis
Security camera
Solar cellsCO2 refrigerantLighting controlAir conditioning/
Ventilationcontrol
Products from other Companies
Products fromother Companies
Massage chairBeauty appliance
Ion water conditionerLED lighting
SuperdirectionalSpeakers, etc
Today’s your coffeeDisplay panelCloud service
N t
imes
exp
ansi
on
of
succ
ess
mo
del
s
※
※N:Number of shops etc
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
USAENG. section
AsiaENG. section
IndiaENG. section
RussiaENG. section
EuropeENG. section
BrazilENG. section
JapanSSJC
ChinaENG. section
TaiwanENG. section
Strengthen or newly establish engineering sections in global 8 regions
Function enhancement
Newlyestablishment
Structural improvements overseas solution sections
■ Deploy engineering functions in each regions to establish solution cycle
22 / 27
Solution Cycle
MarketingProductplanning
DesignR&D
Procurementproduction
System integrationSystem engineering
Maintenance, operation& service
SI companies / Dealers
Establish engineering function
Business Division
2014.4.1~
Business Division
Current
Reinforce
System Sales Company
System Sales Company
Toward 2020 Tokyo Olympics■ Since 1988, we have contributed to Olympic operation in technology as a Olympic Partner■ Established record of introduction of new technologies and business creation.
Strengthen further toward Tokyo Olympics in 2020.
Relationship between Olympic & Us e.g.) Solution for a better Olympic operation
Sta
dium
Infr
astr
uctu
re
e.g.) Smart Stadium
Security Monitoring
Lost Child Detection System
【Main products】・Large Screen・Large Speaker・Broadcastingsystem
・Security systemetc
【Main products】・Security system・Broadcastingsystem
・Payment solutionetc
Ex) Smart Olympic Lane
Traffic Control System forOlympic special laneDetect
23 / 27
In main stadiumDisplay large equipment
Launch P2 cardRecord video in semiconductor
DVCPRO HDRealize Full HD broadcasting
HD video communicationHD-link at different locations
Realize 3D broadcasting &Ultra-high luminance projector
From analog to digitalLaunch D3 cameras
1996 Atlanta
2004 Athens
2008 Beijing
2010 Vancouver
2012 London
2016 Rio de Janeiro2018 Pyeongchang
1992 Barcelona
2020 Tokyo Further technology evolution &create new businesses
Contribute to Panasonic Group total target sales:150 JPYbn
Start The Olympic Partner (TOP)1988 Seoul
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
Main Areas to Strengthening Solution Business
■ Plan to invest accumulated 100 billion yen including M&A by FY19
Main areas to focus Specific action to take
EnhanceBusiness Platform
Expansion ofSolution Area
Cloud andWide-range wireless
■ Establishment of overseas engineeringorganization
■ Acquire know-how in main core business for the specific industries
■ Construct MVNO andcollaboration with IT BtoB partners etc
24 / 27
Sales Growth by business & region (FY14 → FY19)
■By business : Based on the core businesses, expand solution sales across each business divisions■By region : Expand sales especially outside Japan to reinforce or newly build the engineering sections
25 / 27
By region
1,219.3
1,600.0
FY14 FY19FY14 FY19
Ver
tical
1,600.0
By business
+80.0
Com
mun
icat
ion
Mob
ility
Vis
ual &
Imag
ing
1,219.3
+90.0
+90.0
+10.0
+110.0
Oth
ers
+80.0
+130.0
Ove
rsea
s
S
trat
egic
Reg
ions
+80.0
Dev
elop
ed
C
ount
ries
Japa
n
Oth
ers
+90.0
(yen: billions)
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
Contents
1. FY14 Results
2. FY15 Business Plan
3. Toward FY19
4. Summary
Summary 27 / 27
Toward FY19: 1,600 billion yen by shifting to growth strategy
(yen: billions)
FY14(Results)
FY15(Business Plan)
Sales 1,219.3 1,231.0
Operating profit(%)
20.4(1.7%)
43.0(3.5%)
FCF -23.5 -22.5
Copyright (C) 2014 Panasonic Corporation All Rights Reserved.
Disclaimer Regarding Forward-Looking StatementsThis presentation includes forward-looking statements (that include those 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 withtimely 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; 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 translated 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, 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.
top related