Panasonic IR Day 2012
Global Consumer Marketing Sector
Business Strategy
May 23. 2012
Panasonic Corporation
Global Consumer Marketing Sector
Director Yoshiiku Miyata
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.
Agenda
2
1. GCM Sector Overview
2. FY2013 Business Plan
3. FY2013 Key Initiatives
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
1
Agenda
3
1. GCM Sector Overview
2. FY2013 Business Plan
3. FY2013 Key Initiatives
Frame Work of New Group Structure
Consumer Business
Field (B to C)
Components &
Devises Business
Field (B to B)
Other related businesses
Energy Company
Industrial Devices Company
Automotive Systems Company
Manufacturing Solutions
Company
Healthcare Company
Eco Solutions Company
Appliances
Company
AVC Networks
Company
R&D
Manufacturing
Systems & Communications
Company
Marketing
Sales,
Service
Global Consumer
Marketing Sector
(GCM)
Solutions Business
Field (B to B)
4
Global & Group (G&G) Head Office
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
2
ＧＣＭ Sector Overview
5
Number of employees as of March 31, 2012:
approx. 15,000 （Japan: 7,000, overseas: 8,000）
function
Global
Regional
Global Strategy
Regional Strategy
Sales Company Support
Regional Marketing Company
Japan
AVC Marketing Div.
（AVM）
Appliances Marketing
Div. （APM）
CS Div.
National Sales Company
Japan
APM-J
USA, Canada
N. America
PCMNA
Europe
PCME
UK, Germany etc.
L. America
PMLA
Brazil etc.
CIS
PMCIS
Russia, Ukraine
Middle East
Africa
PMMAF
UAE
Asia Pacific
PCMAP
Malaysia etc.
China
PCMCN
Mission of GCMS
Mission
Role of
GCMS
Goal
3 Values
Consumers/sales channel Partners
ＧＣＭ Sector
AVM-J
Local
Local
Customer
Strategy Touch point
6
As a Challenger, Innovate Customer Lifestyle
“All Over the World”
- Pursuit Consumer Solution To expand global consumer business with customer oriented
‘product planning’ and ‘PULL marketing’ as core strategy
Target at No.1 market share brand (target at No.1 or 2 on value basis)
Open・Fair・Bold [TEAM Panasonic]
Power of Global “One” Marketing Strategy
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3
Agenda
7
1. ＧＣＭ Sector Overview
2. FY2013 Business Plan
3. FY2013 Key Initiatives
Market Trend
GDP
Japan
US
Europe
Brazil
India
China
8
Industry Growth Ratio
CY12 forecast
FY12 estimate
FY13 forecast
2.0%
-23.1%
-13.0%
2.1%
-2.5%
-5.0%
-0.3%
-13.0%
-10.0%
3.0%
5．2%
5.0%
6.9%
15.0%
10.0%
8.2%
9.0%
IMF Outlook
As of April 17, 2012
3.0%
Note: Consumer electronics sector
(excl. Cell phones, IT related products)
USA： Panasonic estimate based on CEA（AV products）
Europe： Panasonic Estimate based on GFK（EU5 CE total）
Japan. Brazil. India .China： Panasonic estimate
Copyright (C) 2012 Panasonic Corporation All Rights Reserved.
4
FY2013 Business Plan
9
■ Sales： 2,385.0 bil. yen (+/-0% vs. FY12)
■ Double-digit growth： Latin America, Asia
Positive growth： Middle East, Africa, China
■ Overseas Sales ratio： 53% (FY12) ⇒ 55% (FY13)
Europe
vs. LY
-2%
N. America
ＣＩＳ
China
vs.
vs. LY
LY
-9%
-9%
Japan
vs. LY
-2%
vs. LY
+5%
Middle East & Africa
Vs
Vs LY
LY
+9%
+9%
Asia & Pacific
vs. LY
-3%
L. America
vs. LY
+13%
vs. LY
+14%
AV products category
Appliances products category
FY2013 Sales by Product Category
Overseas
Energy & Lighting
4%
Small Appliances
10%
Refrigerator
6%
Air Conditioner
17%
Appliances
44%
Japan
Other Appliances
AV
6%
Products
TV
56% Energy & Lightingﾞ
TV
30%
Washing machine
7%
DSC
AV 12%
8%
AV others
6%
10
AV
Products
39%
14% DSC
3%
14%
Small Appliances
17%
AV
12%
AV others
10%
Washing machine
7%
Appliances
61%
Refrigerator
8%
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Air Conditioner
9%
5
Agenda
11
1. GCM Sector Overview
2. FY2013 Business Plan
3. FY2013 Key Initiatives
FY2013 Growth Strategy
12
1.
1. Products
Products Strategy：
Strategy： Grow
Grow with
with appliances
appliances
2.
2. Market
Market Strategy：
Strategy： Grow
Grow in
in emerging
emerging markets
markets
3.
3. Marketing：
Marketing： Strengthen
Strengthen ‘ＰＵＬＬ
‘ＰＵＬＬ strategy’
strategy’
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6
Grow with Appliances
1. Products
13
■
■ Increase
Increase appliances
appliances sales
sales with
with air
air conditioners
conditioners
■
■ Shift
Shift to
to value
value added
added product
product lineup
lineup to
to maintain
maintain
profitability
profitability in
in TV
TV business
business
Sales by Products Category
1. Products
TV
DSC
Shift to value added product lineup to maintain profitability
Increase sales with mirror-less SLR to gain market share
TV
2,384 bil. yen
FY13BP rate
Globally expand large appliance business with eco marketing,
promoting air conditioner in emerging market
～
～
Small
Appliances E&L
Washing
Refrigera machine
Air
tor
Conditioner
Other
AV
DSC
PV etc
2,385 bil. yen
Appliances
14
+73 bil yen
+6% vs. FY12
(Overseas sales +20% vs. FY12)
※E&L：Energy & Lighting
FY12 Results
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～
～
FY13 Forecast
7
Air Conditioners (A/C)
1. Products
15
■ Expand business in emerging market with locally oriented
room air conditioners and other products
■ Expand sales channel especially in US and Europe with
commercial-use air conditioner
Room Air Conditioner
1. Products
Commercial-use Air Conditioner
‘ECONAVI’ Brand
Establish Eco brand
promoting ECONAVI
Marketing concept
16
Promote our superior energy saving technologies
FY2012
FY2013
FY2014
Japan
Asia
Pacific
CIS
India
Introduce approx. 270 models
in more than 90 countries
Middle East
Brazil
China
Europe
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8
1. Products
Small Appliances
17
1. Globally introduce Japan and Europe oriented products
2. Expand ‘Local Fit’ product lineup with ODM products
3. Strengthen ‘bundle’ promotion
FY2013
FY2012
Beauty/grooming
products
Japan oriented
products to
global market
Introduce
‘Parts Beauty’ products
in Japan
Europe oriented products
to global market
Globally expand
‘Parts Beauty’ products
Introduce at
CIS
Men’s grooming
products Milan Series
Expand ‘local
Fit’ products
Kitchen
Small Appliances
FY2014
China/Asia
Expand VZ lineup
Introduce VZ
Introduce kitchen small
appliances series
Europe oriented products
to global market
Expand ‘local
Fit’ products
China/Asia
Expand VZ lineup with
ODM products
Introduce at
CIS
Introduce VZ with ODM
products
*Parts Beauty：Nail Care、Eyelash Curler、Body care
TV
1. Products
18
■ Increase sales as core product in home appliance, focusing on profitability
■ Shift strategies to higher value added product lineup with larger screen, LED,
FHD and Smart TV
Sales increase of over 46” FHD
250
(+29%)
(129%)
Mil
万台
Mil units
units
200
LED TV
FY 2012
FY 2013
58
%
70
%
PDP
150
100
LED
50
LED
0
Sales portion of
Over 46” FHD
FY2012
2011
12%
FY2013
2012
Sales portion of LED
18%
Smart TV
Full HD
FY 2012
73
%
FY 2013
85
%
Sales Portion of over 37” FHD
FY 2012
22
%
FY 2013
45
%
Sales Portion of Smart TV
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9
Improve Business Structure
1. Products
Appliance sales ratio
41%（FY2011）⇒52%（FY2013）
TV sales ratio
34%（FY2011）⇒22%（FY2013）
Sales ratio
TV
34%
Other
AV products
Appliance
22%
25%
25%
24%
41%
FY11
2. Market
26%
19
49%
FY12
52%
FY13(e)
Emerging Markets
20
■
■ Increase
Increase sales
sales for
for middle
middle class
class clientele,
clientele,
and
and in
in suburban
suburban area
area
■
■ Capture
Capture demand
demand with
with ‘Local
‘Local Fit’
Fit’ products
products
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10
Sales by Regions
2. Market
21
■ Sales in emerging market makes up sales drop in Japan, US and E.U.
＊1
＊1
New
＊2
＊2
ASEAN emerging
Cluster countries
JPN, EU, US
China
2,385 bil. yen
2,384 bil. yen
Brazil
India
Others
+60 bil. yen
Total sales in emerging markets：468 bil. yen （+15% vs. LY）
～
～
～
～
FY12 Results
FY13 forecast
＊1 ASEAN cluster：Vietnam, Indonesia, Philippine, Malaysia, Singapore, Thai, Cambodia, Myanmar
＊2 New emerging countries：Bangladesh, Sri Lanka, African region
Grow in Emerging Markets
2. Market
22
■Strengthen product lineup with local production, ODM and
import from other regions and capture demand in middle class clientele
1. India, Brazil, China
China
India
A/C, Washing machine
FY13 commence production
Expand lineup
(Local Production, ODM)
Invest capitals as corporate project
Brazil
Refrigerator FY13
Washing machine FY14
Expand product cluster
lineup
2nd
3rd
Commence local production
Capture demand in
and
tier cities
(Local retailers、SEIKATU-KAN)
Capture demand in suburban area
2. ASEAN cluster
Further increase sales
with strong products and marketing
Washing machine: FY13 commence local production
Establish washing machine, refrigerator R&D site
ASEAN: Integrate merchandising
and cluster marketing
incl. Mekong Delta Sub-Region (Cambodia・Myanmar)
Expand lineup
（Commence local
production）
3. New Emerging country
Stay ahead in the Competition
by faster Commitment to the market
Expand business with TVs and
air conditioners
Introduce lineups for India to:
- India neighbors (Bangladesh, Sri Lanka)
- Africa (Angora, Kenya, Nigeria)
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11
2. Market Capture Demand with ‘Local Fit’ Products
23
Emerging Market
■ Capture demand in top to bottom of middle class clientele
India （approx. 220 mil. households）
Wealthy, new rich classes
（approx. 2.9 mil. households）
China (approx. 400 mil. households）
Wealth, new rich classes
（approx. 54 mil. households）
Past target
Current target
Bottom of middle class
FY2011 (Panasonic estimate)
2. Market
Emerging Market
Bottom of middle class
FY2011 (Panasonic estimate)
Locally-Oriented Product (AV)
24
‘Local Fit’: local planning, local production and local consumption
Promote R&D, manufacturing, marketing and customer services by local staffs
ＬＣＤ ＴＶ ‘Sound for India’
Latin America Audio
Introduce IPTV with 32” model at affordable price
(compared with others’
High end and large screen products)
⇒ differentiate with
‘Sound’ and ‘Easy IP TV’
Introduce high end product with large
size speakers suitable for home parties
at less than 800K peso
⇒differentiate with
‘Powerful and clear sound’
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12
2. Market Locally Oriented Product (Appliances)
Emerging Market
India: air conditioner ‘CUBE’
China: air purifier (G10)
Introduce separate type A/C at
same price level as window type A/C
⇒ differentiate with
’Silent sound’ and ‘energy saving’
2. Market
Emerging Market
25
Introduce product with timer and cigarette
deodorization at less than
1,000 RMB price level
⇒ differentiate with
‘Design’ and ‘cigarette deodorization’
ODM Products (India)
26
■Strengthen product lineup with in-house and ODM products
Air Conditioner
Panasonic/RAC
Panasonic/Cubu
Refrigerator
Washing machines
Panasonic/1 door
Panasonic/Full Auto
ODM/1 door
ODM/Twin Tub
＊RAC : Room Air Conditioner
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13
2. Market
Sales Increase with ‘Local Fit’ Products
Emerging Market
(Case in India)
27
Introduce ‘Local Fit’ Products, expanding sales channels and lineup to increase sales
Air conditioner
Refrigerator
Washing machine
1.8 times vs. LY
2.3 times vs. LY
3.6 times vs. LY
（FY11 → FY12)
（FY11 → FY12)
（FY11 → FY12)
In-house
ＣＵＢＥ
ODM products with
1door direct cooling
Traditional
split type models
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY２０１2
FY２０１1
Doubled number of
sales channels
Launched in-house CUBE
in Jan, 2011
ODM
Twin Tub
In-house
Full Automatic models
In-house models
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY２０１1
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY２０１2
Increased 1.5 times of
number of sales channels
Launched ODM products
FY２０１1
FY２０１2
Increased 1.5 times of
number of sales channels
Launched ODM Twin Tub
with 1 door direct cooling
in May, 2011
in Dec., 2010
2. Market
Emerging Market
Local Lifestyle Research and Design Sites28
■Develop ‘Local Fit’ products at local lifestyle research and design sites
Local design sites (China, Malaysia, US, UK)
Local lifestyle research sites (Brazil, India, China, UAE, Germany)
Lifestyle research group of overseas manufacturing companies
(Thailand, Malaysia, Indonesia, Philippines, Taiwan)
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14
2. Market
Emerging Market
Sales Forecast in Emerging Markets 29
Sales ratio in Emerging
markets
(in GCM overseas sales)
20%
17%
New Emerging
countries
5％
1
+
Brazil
India
ASEAN Cluster
China
FY2012 Results
3. Marketing
FY2013 Forecast
Strengthen ‘PULL Strategy’
30
■Strengthen advertising and branding in overseas
Advertising Investment
In Overseas Market
・・・
１．５
Times
FY2012 Results FY2013 Forecast
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15
Towards V-Shaped Recovery
31
Strengthen Market perspective ‘product planning’
and ‘PULL marketing’ in overseas
Promote global marketing strategy
collaborating with business domain companies
32
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16
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.
33
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.
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17