1. GCM Sector Overview 2. FY2013 Business Plan 3. FY2013 ... · PDF fileFY2013 Business Plan...

1Copyright (C) 2012 Panasonic Corporation All Rights Reserved.

May 23. 2012

Panasonic CorporationGlobal Consumer Marketing Sector

Director Yoshiiku Miyata

Global Consumer Marketing Sector Business Strategy

Panasonic IR Day 2012

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 yearended March 31, 2012. In addition, “fiscal 2013” or “FY 2013”refers to the year ending March 31, 2013.

2AgendaAgenda

1. GCM Sector Overview

2. FY2013 Business Plan

3. FY2013 Key Initiatives





3AgendaAgenda







4Frame Work of New Group StructureFrame Work of New Group Structure

Marketing S

ales,

Service

R&

DM

anufacturing

Global ConsumerMarketing Sector

(GCM)

AV

C N

etworks

Com

pan

y

Appliances

Com

pan

y

System

s & C

om

munications

Com

pan

y

Consumer Business Field (B to C)

Solutions Business Field (B to B)

Components & Devises Business

Field (B to B)

Global & Group (G&G) Head Office

Eco S

olutions Com

pany

Healthcare C

om

pany

Manufacturing S

olutions

Com

pan

y

Autom

otive System

s Com

pany

Industrial Devices C

ompa

ny

Energ

y Com

pan

y

Other related businesses


5Number of employees as of March 31, 2012:

approx. 15,000 （Japan: 7,000, overseas: 8,000）

ＧＣＭ Sector OverviewＧＣＭ Sector OverviewC

onsumers/sales chann

el Partners

Consum

ers/sales channel P

artners

Global Regional Local

AVC Marketing Div.（AVM）

CS Div.

USA, Canada

UK, Germany etc.

Brazil etc.

Russia, Ukraine

UAE

Japan

Malaysia etc.

Japan

N. America

Europe

CIS

Middle EastAfrica

Asia Pacific

China

APM-J

PCMNA

PCME

PMLA

PMMAF

PCMAP

PCMCN

AVM-J

PMCIS

L. America

LocalStrategy

Regional StrategySales Company Support

Global Strategyfunctionfunction CustomerTouch point

Appliances Marketing Div. （APM）

ＧＣＭ SectorＧＣＭ Sector

Regional Marketing CompanyRegional Marketing Company National Sales CompanyNational Sales Company

6Mission of GCMSMission of GCMS

Power of Global “One” Marketing StrategyPower of Global “One” Marketing Strategy

3 Values Open・Fair・Bold [TEAM Panasonic]

Goal Target at No.1 market share brand (target at No.1 or 2 on value basis)

Mission

As a Challenger, Innovate Customer Lifestyle “All Over the World”

- Pursuit Consumer Solution -

Role of GCMS

To expand global consumer business with customer oriented ‘product planning’ and ‘PULL marketing’ as core strategy


7AgendaAgenda

1. ＧＣＭ Sector Overview



1. ＧＣＭ Sector Overview



8Market TrendMarket Trend

JapanJapan

USUS

EuropeEurope

BrazilBrazil

IndiaIndia

ChinaChina

GDPGDP Industry Growth Ratio Industry Growth Ratio

2.0%2.0% -13.0%-13.0%

2.1%2.1% -5.0%-5.0%

-0.3%-0.3% -10.0%-10.0%

3.0%3.0% 5.0%5.0%

6.9%6.9% 10.0%10.0%

8.2%8.2% 3.0%3.0%

IMF OutlookAs of April 17, 2012

IMF OutlookAs of April 17, 2012

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

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

CY12 forecastCY12 forecast FY13 forecastFY13 forecast

-23.1%-23.1%

-2.5%-2.5%

-13.0%-13.0%

5．2%5．2%

15.0%15.0%

9.0%9.0%

FY12 estimateFY12 estimate


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)

FY2013 Business PlanFY2013 Business Plan

vs. LY-2%

vs. LY-2%

vs. LY-2%

vs. LY-2%

vs. LY-3%

vs. LY-3%

vs. LY+13%vs. LY+13%

vs. LY-9%

vs. LY-9%

Vs LY+9%

Vs LY+9%

vs. LY+14%vs. LY+14%

vs. LY+5%

vs. LY+5%

AV products categoryAppliances products categoryAV products categoryAppliances products category

JapanJapanN. AmericaN. America

L. AmericaL. America

ChinaChinaＣＩＳＣＩＳ

Middle East & AfricaMiddle East & Africa

EuropeEurope

Asia & PacificAsia & Pacific

10FY2013 Sales by Product CategoryFY2013 Sales by Product Category

Overseas

TV30%

DSC12%AV

8%

AV others6%

Air Conditioner17%

Small Appliances10%

Japan

TV14% DSC

3%

AV12%

AV others10%

Air Conditioner9%

Small Appliances17%

AV Products

56%

AV Products

56%

AV Products

39%

AV Products

39%

Refrigerator6%

Washing machine7%

Energy & Lighting4%

Refrigerator8%

Washing machine 7%

Energy & Lightingﾞ14%

Other Appliances6%

Appliances61%

Appliances61%

Appliances44%

Appliances44%


11AgendaAgenda







12FY2013 Growth Strategy FY2013 Growth Strategy

1. Products Strategy： Grow with appliances1. Products Strategy： Grow with appliances

2. Market Strategy： Grow in emerging markets2. Market Strategy： Grow in emerging markets

3. Marketing： Strengthen ‘ＰＵＬＬ strategy’3. Marketing： Strengthen ‘ＰＵＬＬ strategy’


13Grow with AppliancesGrow with Appliances

■ Increase appliances sales with air conditioners■ Increase appliances sales with air conditioners

1. Products1. Products

■ Shift to value added product lineup to maintain profitability in TV business

■ Shift to value added product lineup to maintain profitability in TV business

14Sales by Products CategorySales by Products Category

Appliances

DSC

TV


※E&L：Energy & Lighting

FY13 Forecast

TV

FY12 Results

OtherAV

DSC

Air Conditioner

E&L

～～～～

2,38

4 b

il. y

en

+73 bil yen+6% vs. FY12

(Overseas sales +20% vs. FY12)

Refrigerator

Washing machine

Small Appliances

PV etcFY13BP rate

2,38

5 b

il. y

en

Globally expand large appliance business with eco marketing, promoting air conditioner in emerging marketGlobally expand large appliance business with eco marketing, promoting air conditioner in emerging market

Shift to value added product lineup to maintain profitabilityShift to value added product lineup to maintain profitability

Increase sales with mirror-less SLR to gain market shareIncrease sales with mirror-less SLR to gain market share


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 ConditionerRoom Air Conditioner Commercial-use Air Conditioner Commercial-use Air Conditioner

Air Conditioners (A/C)Air Conditioners (A/C)1. Products1. Products

16

Brazil

India

Middle East

AsiaPacific

Europe

CIS

Japan

FY2014FY2013FY2012Marketing concept

Promote our superior energy saving technologiesEstablish Eco brandpromoting ECONAVI

‘ECONAVI’ Brand‘ECONAVI’ Brand

China

Introduce approx. 270 modelsin more than 90 countries

Introduce approx. 270 modelsin more than 90 countries



171. Globally introduce Japan and Europe oriented products2. Expand ‘Local Fit’ product lineup with ODM products3. Strengthen ‘bundle’ promotion

*Parts Beauty：Nail Care、Eyelash Curler、Body care

Small AppliancesSmall Appliances

Beauty/groomingproducts

Kitchen Small Appliances

Europe oriented products

to global market

Expand ‘local Fit’ products

Japan oriented products to

global market

Expand ‘local Fit’ products

FY2013 FY2012 FY2014

Globally expand ‘Parts Beauty’ products

Introduce at CIS

China/Asia Expand VZ lineup Introduce VZ

Introduce kitchen small appliances series

Introduce at CIS

China/AsiaExpand VZ lineup with

ODM productsIntroduce VZ with ODM

products

Introduce ‘Parts Beauty’ products

in Japan

Men’s grooming products Milan Series


Europe oriented products

to global market

18TVTV

■ 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

LED TV

Sales portion of LED

58%

70%

FY 2012 FY 2013

22% 45

%

Smart TV

Sales Portion of Smart TV

Full HD

Sales Portion of over 37” FHD

73%

85%

Sales portion ofOver 46” FHD

万台 (129%)

2011 2012

Sales increase of over 46” FHD

LED0

50

100

150

200

250

LED

PDP


Mil unitsMil units

FY 2012 FY 2013FY 2012 FY 2013

(+29%)(+29%)

FY2012 FY2013FY2012 FY2013

12% 18%


19

Appliance sales ratio

TV sales ratio

41%（FY2011）⇒52%（FY2013）

34%（FY2011）⇒22%（FY2013）

Improve Business StructureImprove Business Structure

Sales ratio

TV

OtherAV products

Appliance

34%22%

24%

25%

41%

52%

26%

25%

49%


FY11 FY12 FY13(e)FY11 FY12 FY13(e)

20Emerging MarketsEmerging Markets

■ Increase sales for middle class clientele, and in suburban area

■ Increase sales for middle class clientele, and in suburban area

2. Market2. Market

■ Capture demand with ‘Local Fit’ products■ Capture demand with ‘Local Fit’ products


21Sales by RegionsSales by Regions

India

Brazil

ASEANCluster

China

Others

～～～～

JPN, EU, US

Newemerging countries

■ Sales in emerging market makes up sales drop in Japan, US and E.U.

Total sales in emerging markets：468 bil. yen （+15% vs. LY）

+60 bil. yen

FY12 Results FY13 forecast

2,38

4 b

il. y

en

2,38

5 b

il. y

en

＊1 ASEAN cluster：Vietnam, Indonesia, Philippine, Malaysia, Singapore, Thai, Cambodia, Myanmar

2. Market2. Market

＊1＊1＊2＊2

＊2 New emerging countries：Bangladesh, Sri Lanka, African region

22Grow in Emerging MarketsGrow in Emerging Markets

BrazilChinaIndia

Refrigerator FY13Washing machine FY14

Commence local production

Refrigerator FY13Washing machine FY14

Commence local production

Washing machine: FY13 commence local production

Establish washing machine, refrigerator R&D site

Washing machine: FY13 commence local production

Establish washing machine, refrigerator R&D site

A/C, Washing machine FY13 commence productionA/C, Washing machine FY13 commence production

2. ASEAN cluster

1. India, Brazil, China

3. New Emerging country

Invest capitals as corporate projectInvest capitals as corporate project

Further increase sales with strong products and marketing

Stay ahead in the Competition by faster Commitment to the market

Expand lineup(Local Production, ODM)

Capture demand in suburban area

Expand product cluster lineup

Capture demand in 2nd and 3rd tier cities(Local retailers、SEIKATU-KAN)

Expand lineup（Commence local

production）

Introduce lineups for India to:- India neighbors (Bangladesh, Sri Lanka)- Africa (Angora, Kenya, Nigeria)

Expand business with TVs and air conditioners

ASEAN: Integrate merchandising and cluster marketing

incl. Mekong Delta Sub-Region (Cambodia・Myanmar)

2. Market2. Market

■Strengthen product lineup with local production, ODM andimport from other regions and capture demand in middle class clientele


23

China (approx. 400 mil. households）India （approx. 220 mil. households）

Capture Demand with ‘Local Fit’ ProductsCapture Demand with ‘Local Fit’ Products

FY2011 (Panasonic estimate)FY2011 (Panasonic estimate)

■ Capture demand in top to bottom of middle class clientele

Wealthy, new rich classes（approx. 2.9 mil. households） Past target

Current targetBottom of middle classBottom of middle class Bottom of middle classBottom of middle class

2. MarketEmerging Market


FY2011 (Panasonic estimate)FY2011 (Panasonic estimate)

Wealth, new rich classes（approx. 54 mil. households）

24

‘Local Fit’: local planning, local production and local consumptionPromote R&D, manufacturing, marketing and customer services by local staffs

Locally-Oriented Product (AV)Locally-Oriented Product (AV)

Latin America AudioLatin America AudioＬＣＤＴＶ ‘Sound for India’ＬＣＤＴＶ ‘Sound for India’

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’




25

India: air conditioner ‘CUBE’India: air conditioner ‘CUBE’

Introduce separate type A/C at same price level as window type A/C

⇒ differentiate with ’Silent sound’ and ‘energy saving’

China: air purifier (G10)China: air purifier (G10)

Introduce product with timer and cigarette deodorization at less than

1,000 RMB price level

⇒ differentiate with‘Design’ and ‘cigarette deodorization’

Locally Oriented Product (Appliances)Locally Oriented Product (Appliances)2. MarketEmerging Market


26

■Strengthen product lineup with in-house and ODM products

Refrigerator Washing machinesAir Conditioner

ODM Products (India)ODM Products (India)2. MarketEmerging Market


ODM/1 door

＊RAC : Room Air Conditioner

Panasonic/RAC Panasonic/1 door Panasonic/Full Auto

Panasonic/Cubu ODM/Twin Tub


27

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Air conditioner

Launched in-house CUBE

in Jan, 2011

FY２０１2

1.8 times vs. LY（FY11 → FY12)

FY２０１1

In-houseＣＵＢＥ

Doubled number of sales channels

Traditional split type models

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Sales Increase with ‘Local Fit’ ProductsSales Increase with ‘Local Fit’ Products

Introduce ‘Local Fit’ Products, expanding sales channels and lineup to increase sales

Washing machine

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Launched ODM products

with 1 door direct cooling

in Dec., 2010

Refrigerator


ODM products with 1door direct cooling

In-house models


ODMTwin Tub

In-house Full Automatic models

Increased 1.5 times ofnumber of sales channels



FY２０１2FY２０１1 FY２０１2FY２０１1

Increased 1.5 times of number of sales channels

Launched ODM Twin Tub

in May, 2011

(Case in India)(Case in India)

28Local Lifestyle Research and Design SitesLocal 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)

■Develop ‘Local Fit’ products at local lifestyle research and design sites




29Sales Forecast in Emerging Markets Sales Forecast in Emerging Markets

FY2013 ForecastFY2012 Results

China

ASEAN Cluster

India

Brazil

17% 20%

New Emerging countries

Sales ratio in Emergingmarkets (in GCM overseas sales)

+15％+15％



30

■Strengthen advertising and branding in overseas

Strengthen ‘PULL Strategy’Strengthen ‘PULL Strategy’3. Marketing3. Marketing

FY2012 ResultsFY2012 Results FY2013 ForecastFY2013 Forecast

１．５Times１．５

Times

・・・・・・

Advertising InvestmentIn Overseas Market

Advertising InvestmentIn Overseas Market


31Towards V-Shaped RecoveryTowards V-Shaped Recovery

Strengthen Market perspective ‘product planning’and ‘PULL marketing’ in overseas

Promote global marketing strategy collaborating with business domain companies

Promote global marketing strategy collaborating with business domain companies

32


33

Disclaimer Regarding Forward-Looking StatementsThis 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; thepossibility 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 overseascompanies, 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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