3. Business Policy/Growth Strategy

Transcription

1 Panasonic IR Day 2012 Manufacturing Solutions Company Business Strategy May 23, 2012 Manufacturing Solutions Company Panasonic Corporation President Yoshiro Takemoto 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, In addition, fiscal 2013 or FY 2013 refers to the year ending March 31, Contents 1 1. Domain Outline 2. Market Trend 3. Business Policy/Growth Strategy 4. Summary 1

2 Contents 2 1. Domain Outline 2. Market Trend 3. Business Policy/Growth Strategy 4. Summary Domain Outline 3 Name Representative Business Outline Headquarter Location Major Sites Manufacturing Solutions Company (MS Company) President : Yoshiro Takemoto Vice president : Koichiro Masai Development, manufacturing, sales and service of electronic component mounting system (JISSO system), welding & robot system, etc Inazu-cho Toyonaka City, Osaka, Japan Japan : Toyonaka, Kadoma, Kofu, Kaga Overseas : Suzhou/Tangshan (China), Singapore, India (under construction) 2

3 Domain Outline (Organization) Manufacturing Solutions Company 4 Panasonic Factory Solutions Co.,Ltd. President, Yoshiro Takemoto Panasonic Factory Solutions Asia Pacific Panasonic Factory Solutions Suzhou Co.,Ltd. Panasonic Factory Solutions Sales & Engineering Japan Co.,Ltd. (PFSC) (PFSAP) (PFSS) Panasonic Welding Systems Co.,Ltd. (PWS) President, Koichiro Masai Panasonic Welding Systems Kaga Co.,Ltd. Panasonic Welding Systems Tangshan Co.,Ltd. Panasonic Welding Systems India (PWST) (PWSI) Panasonic Factory Solutions of America Panasonic Factory Solutions of Europe FA Department of Device sales company Global consolidated Employees Approx. 4,000 Sites 62 incl. sales and service Overseas sites Tangshan, China (Under construction) India Suzhou, China Singapore HQ HQ Toyonaka Kofu Kita-Kadoma Kaga Domestic sites As of March, 2012 Domain Outline (Customers and Products) Solutions to support manufacturing モノづくりを支えるソリューション Customers products Electronic equipment Infrastructure 5 Total JISSO solution Devices Mechanical parts Vehicles/Vessels Joint/Processing solution Production system Global share of major products Solution Measurement system Display system JISSO system Market share Approx.30% <Estimated by Panasonic for FY2012> JISSO system Device system Small/Medium size LCD bonder Market share Approx.60% Laser oscillator Welding robot/ Laser oscillator Market share Approx.20% Arc welding robot Consumable parts for welding, peripherals Welding system Arc welding machine Market share Approx.15% 3

4 Domain Outline (Future Goal) Mission (Customers Value) Manufacturing Solutions Company Contribute to progress in global society through manufacturing solutions 6 Vision (Future goal) - Secure top class market share for major products in the industry - Strong management structure against economic fluctuation Major businesses Solution (Material/Software etc) Laser equipment JISSO System Welding machine /Robot Display system Device system Business Outline 7 Others JISSO system Display system Device system Laser equipment Solution Welding machine/robot 27% 17% 56% FY2012 consolidated sales billion yen Full-dual lane integrated production system (SPD+NPM) Costeffective modular mounter Insertion machine Welding machine Robot 4

5 Summary for FY Sales Operating profit (yen: billions) (yen: billions) Overseas Japan FY2011 FY2012 FY2011 FY2012 Region -Although sales in East Asia which is the largest market were weak, sales in emerging countries and South Asia were favorable. Product -Although sales in JISSO system were weak, sales in welding machine and robot system were stable. -Sales in new business (laser equipment etc) showed an increase. -Operating profit increased from last year despite the negative impact of the strong yen. This was due to the strengthened management structure such as improved marginal profit ratio and Cost Busters (CB) activity. Contents 9 1. Domain Outline 2. Market Trend 3. Business Policy/Growth Strategy 4. Summary 5

6 Market Trends 10 Markets are expected to show slow recovery in FY2013 due mainly to further growth in new businesses and emerging markets although financial instability in Europe remains Mobile phone (Forecast) (unit : million sets) *Source: Yano Research Institute (Dec. 2011) 3,000 Annual average growth 9% Automobile (Forecast) (unit : million cars) *Source: Nikkei BP etc (Sep. 2011) Annual average growth 5% 100 2,000 1,000 Smart phone (annual average growth 19%) BRICs, emerging markets (annual average growth 13%) Note PC (Forecast) Annual average growth 20% Tablet PC (annual average growth 35%) (unit : million sets) *Source: Display Search (Jan. 2012) Ultra book (annual average growth 98%) Iron usage by region (unit : million ton) 2,000 1,500 1, % *Source WSA (1Q 2011) Percentage of % vs 2011 emerging countries +19% +9% +23% +5% +8% +7% +6% +6% +3% Slow down in Japan/USA/Europe and the ratio in emerging countries expands for FY2013 Other emerging countries China Japan/USA/ Europe Contents Domain Outline 2. Market Trend 3. Business Policy/Growth Strategy 4. Summary 6

7 Business Plan for FY Sales Operating profit (yen: billions) (yen: billions) Overseas Japan FY2012 FY2013 FY2012 FY2013 Key points of business plan for FY2013 Growth strategy Global strategy Strengthening management structure - Thoroughly strengthening major businesses (JISSO system, welding machine/robot) - Expansion of business fields (new products/development of new customers) - Enhancement of cost competitiveness (strengthening/expansion of overseas sites and acceleration of local production and consumption) - Sales expansion for emerging markets (Inland of China/India/Eastern Europe/Brazil etc) - Exertion of synergy integration Evolution Thoroughly Strengthen Major Businesses (JISSO System) Product Proposal of of manufacturing for for high productivity/high quality/energy-saving Full dual lane integrated production system 13 Sales vs. vs. FY12 +20% New material + JISSO software PCB-A PCB-B Production modular, NPM Dual screen printer Further Evolution of Total Solution for Screen Printer/Mounting Machine/Software/Materials Productivity Quality Cost reduction of manufacturing 10% or higher by independent placement Secure stable quality Provision New-Fully independent placement New -Software that supports high of of value (NPM-TT) Co-production of 2 models quality production -Feedback system New Non-stop model changeover -Traceability (PanaCIM) x x Material to realize process innovation New-Low temperature bonding material * (Reduction of reflow power supply) -Corner adhesive New * (Elimination of underfill process) *Collaboration with other business domain companies of Panasonic 7

8 Evolution Thoroughly Strengthen Major Businesses (Welding machine/robot) Proposal Product of of manufacturing for for high productivity/high quality/energy-saving Product examples for welding robot system Exhaust Body 14 Sales vs. vs. FY12 +5% Evolving welding system Dynamic control robot system extensive welding conditions Active process controlled welding robot system Robot system Chassis Fuel Product examples for arc welding machine Automation system Automation system by robot/jig Large handling robot Vessel Steel frame structure Japan-China joint development Multi-purpose global model Main stadium of Beijing Olympics Eco (energy-saving)& Smart (lean functions) (Welding machine RX series) Welding machine 350Rx1 Welding robot Growth Strategy (New Business : Fiber-laser) New heat source for cutting/welding, market Introduction of fiber-laser Expand range of solution in heat processing (cutting/joint) New businesses Provision Energy-saving(3 times in electric conversion efficiency) of value Laser oscillator Simple (optical fiber method) Low thermal effect (local heating, low damage) Various processing (various metals, high speed processing) Maintenance-free (no optical parts) 15 Application of fiber laser (Left) Arc Hybrid welding (Right) Laser Example of laser processing (Cutting) Cutting of iron plate (example of CO 2 laser) 8

9 Growth Strategy 16 (Expansion of Business Field :Comprehensive Business) In addition to equipment, provide customers with values through comprehensive proposal of material/ Sales vs. vs. FY12 consumables/software Delivery/ Installation Production/ Sales Support Support of of introduction introduction Support Support of of renewal renewal +13% Disposal of of equipment Support Support of of operation operation Consulting Training Upgrade Supply of of Consulting/Energy-saving Support of of Parts electronic material supply/ Diagnosis/Eco proposal productivity/ periodical inspection quality enhancement New material of low temperature solder* PanaCIM software/high quality production support software Expand Comprehensive business through synergy creation and collaboration with other domains *Collaboration with business domains companies of Panasonic Global Strategy 17 Accelerate local production and local consumption to respond to QCDE+S and customers requests speedily - Optimal manufacturing locations for globally created business, according to market size and customers trends - Companies in Japan continuously strengthen to create new businesses and business models - Overseas companies expand functions as well as increase production Japan Creation of new projects and businesses Overseas Local production and local consumption Competitiveness in manufacturing Sales ratio of overseas Production ratio of overseas FY % 20% FY % 30% -Strengthen sites in China, the largest market -Strengthen Singapore sites to tackle emerging markets/develop into India 9

10 Global Strategy (Strengthen Sites in China) Strengthen sites in China, the largest market Suzhou, China (PFSS) Operation started in April, 2012 Strengthen manufacturing in the largest market, Manufacturing Business company Expand production (Double) Strengthen development function Strengthen service function 18 Expand local manufacturing by operation of new factory Site area : 35,000 m2, Floor space : 20,000 m2 Employees: approx.360 Tangshan, China (PWST) Strengthen capability to meet customers requirement by strengthening manufacturing and development abilities Expand production (1.4 times) Upgrading development center Support of operation start in India Upgrading development building and expand production capacity Site area : 46,000 m2, Floor space : 32,000 m2 Employees: approx.590 Global Strategy (Strengthen Emerging Market) Strengthen site in Singapore for emerging markets / development into India 19 Singapore (PFSAP) Global site with development, manufacturing, sales and service integrated, expansion of new businesses Expand production (1.4 times) Accelerate total solution for LED production system Further expansion of insertion machine business Create new businesses based on more than 30 years experience Site area : 25,000 m2, floor space : 25,000 m2 Employees: approx.400 India (PWSI) Image of completion Production start in Dec.,2012 Generate sales and expand local production Start manufacturing in the next growing markets Strengthen Secure/develop Start sales networks local operation Expand technical human resources center & distributers Site area : 22,000 m2, floor space : 8,000 m2 (Employees: approx.130) 10

11 Strengthen Management Structure (Generate Synergy Effects) 20 Generate synergy effects and strengthen management structure Function centralization in Osaka Sharing global procurement routes Kita-Kadoma (PFSC) Shin-Osaka (PFSEG) Toyonaka MS Company PFSC PWS Global procurement Sharing commercial routes Suppliers Sharing core technology and commercial routes Expansion and mutual utilization of overseas sites PFSC -Fiber-laser Technology of mass-production -Welding robot in north America Expansion of share -Production support software for welding machine PWS Production start in 2012 India Singapore Tangshan,China Suzhou,China Synergy Creation - Solution for Automotive Industry - Proposal of solution for car electronic industry Device/Finished products Raw material 21 Sensor PCB Battery Raw material for heat radiation Assembly Camera Car navigation Speaker Parallel link SMT equipment Welding machine/ Robot system JISSO system Device system Welding machine Robot Promote total proposal to automotive industry by creating synergy of Panasonic 11

12 Synergy Creation 22 - Solution for Communication Industry - Proposal of solution for smart phone/tablet PC Industries Device Assembly Communication device Circuit parts PCB Parallel link Battery Speaker LCD panel Equipment Raw material JISSO system Laser processing system Raw material for heat radiation Promote total proposal by creating synergy of Panasonic Contents Domain Outline 2. Market Trend 3. Business Policy/Growth Strategy 4. Summary 12

13 Summary 24 Toward Achievement of Business Plan for FY No. 1 global market share for major businesses - Accelerate growth by expanding of new businesses/fields - Maintaining high profitability by strong management structure Early achievement of over billion yen sales target 25 13

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). 26 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. 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. 14