AVC Networks Company Business Policy - Panasonic · PDF file4 AVC Networks Company Business
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Transcript of AVC Networks Company Business Policy - Panasonic · PDF file4 AVC Networks Company Business
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
May 18, 2016
AVC Networks Company
Business Policy
Panasonic Corporation
AVC Networks Company
President Yasuji Enokido Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “FY17” refers to the year ending March 31, 2017
AVC Networks Company Business Policy
FY16 Results
1
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
AVC Networks Company Business Policy
FY16 Results
1,154.3
2
51.8 (4.5%)
74.7 (6.4%)
Increase
Increase
Increased due to growth of solutions
business
Increased due to growth of high value added products in addition to sales expansion
(+1%)
1,169.8
(Yen: billions)
Sales
OP (%)
FY15 FY16
※Figures are based on conventional basis.
AVC Networks Company Business Policy 3
※Reginal solutions include SI / Engineering / Support without 4 core businesses
-10.5
+10.8 -20.4
+75.3 -22.8
-25.8
+8.9 +86.1
1,154.3 1,169.8 +15.5
● Solutions offset decrease of communication and mobility
● Prioritize investment on solutions business
+9.6
+30.6 -23.8
+6.5
51.8 74.7 +22.9
OP Sales
FY16 FY16 FY15
Com
munic
atio
n
Regio
nal S
olutio
ns※
Othe
rs
Visua
l & Im
agin
g
Mobility
FY15
Busine
ss re
structuring
Vertic
al
Sale
s exp
ansio
n
Impro
vem
ent
of m
arg
inal p
rofit
Investm
ent/
fixe
d c
osts
Busine
ss re
structu
ring
※Figures are based on conventional basis.
FY16 Results
(Yen: billions)
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
AVC Networks Company Business Policy 4
Sluggish business in North America
(vs LY)
Mobility Communication
Shrinkage of land-line phone market
(vs LY -11%)
North America : -30% Started late to shift focus to new
business areas
(Home network business)
Failed to respond to changes in market situation and lost market share
Europe : +9%
Japan : +6%
FY16 Challenges
Showed growth by establishing solid relationship with customers such as automotive, utility, and transportation areas
Showed growth by sales expansion of payment systems
AVC Networks Company Business Policy 5
Japan:
135 companies
Global:
67 companies
M&A
Technology Collaboration
Proof test
Innovation Center
Expand Avionics business into new areas
Enhance solution business for QSR ※
Acquired in Aug. 2015
Acquired in Sep. 2015
Promote strategic M&A to expand business area
Expand collaborative activities with customers to create new
values and business
Automated translation
Light ID
For JTB, Narita Int’l. Airport,etc.
For Tokyo Big Site, Tokyu, Tokyo Int’l Air Terminal, etc. ※Quick Service Restaurant
Prepare for FY17 onward
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
AVC Networks Company Business Policy 6
FY17 Business Policy
AVC Networks Company Business Policy
FY17 Management Targets
1,172.7 (+/0%)
1,175.0
7
69.0 (5.9%) 59.0
(5.0%)
Increase
Decrease
Increase in all four categories excluding exchange rate
effect
Decrease due to investments and negative impact of
exchange rate movement
(Yen: billions)
Sales
OP (%)
FY16 FY17(f)
※Figures are based on IFRS.
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
AVC Networks Company Business Policy 8
Carry out investment to expand solutions business
-15.5
+20.4
+19.5
+0.8 +18.4 -41.3
+19.4 +4.6 -24.8
-9.2
69.0 59.0 -10/0
1,172.7 1,175.0 +2.3
FY17 Targets
OP Sales
FY17(f) FY16 FY16 FY17(f)
Com
munic
atio
n
Solu
tions
Oth
ers
Visua
l & Im
aging
Mobility
Sale
s gro
wth
Impro
vem
ent
of m
arg
inal p
rofit
Investm
ent
FX im
pact
FX im
pact
※Figures are based on IFRS.
(Yen: billions)
AVC Networks Company Business Policy 9
Enhance U.S. sales force
Enhance product lineup 200.1 214.2
Mobility
Reestablish business in North America and return to high profitability
Sales Target
Low profitability business
210.5
FY15 FY16 FY17(f)
Major Initiatives in Core Business
(Yen: billions)
Establish specialized sales/SE team for rugged mobile products
Target customers focusing on mobile workers
Strengthen sales organization for service business
Enhance product lineups of rugged tablets and handhelds
Differentiate products with core technology
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
AVC Networks Company Business Policy
Improve profitability by expanding sales of licensed software etc.
Expand peripheral device lineup Expand B2B2C business
10
Improve profitability and expand market share with differentiated model
Telephone
Improve existing business profitability
Initiatives for new business areas
IP-PBX
Home network
Communication
128.6 123.9 149.0
Sales Target
Major Initiatives in Core Business
FY15 FY16 FY17(f)
(Yen: billions)
Low profitability business
Accelerate to shift into new business areas and improve profitability in existing business
AVC Networks Company Business Policy 11
Create values with “High image quality” x “Image
analysis” x “Optical technology”
high brightness and solid state light
Contribute to customers in amusement park, hotel,
and MICE industries as technology partners
Initiatives for entertainment business area
Enhance product lineup
4K, Video over IP 4K, face recognition
※Meeting, Incentive tour, Convention, Exhibition
Visual & Imaging
Expand sales by offering advanced visual & imaging solutions
Stable growth business
276.2 282.4 267.3
Sales Target
Major Initiatives in Core Business
FY15 FY16 FY17(f)
(Yen: billions)
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
AVC Networks Company Business Policy 12
Solutions
Enhance solutions business by industry in Japan, North America, and Europe.
High-growth business
Japan
Develop new products
Strengthen structure for solution business
M&A
North America
Europe
513.9 517.4
(Yen: billions)
Sales Target
425.0
Major Initiatives in Core Business
FY15 FY16 FY17(f)
New system products for retail and logistics business
New system products for smart maintenance support business
Establish Innovation Center
Establish solution dept. for food retail
Strengthen software development
Establish Innovation Center
Establish new solution company
Carry out M&A projects in Japan, North America
and Europe
AVC Networks Company Business Policy 13
Toward FY19
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
AVC Networks Company Business Policy 14
Direction for B2B Solutions Business
Customers
End Customers
AVC Company
Provide solutions with Core Products X IoT
Retail・Logistics
Public Entertainment
Avionics
Become expert in service industry, contribute to success of our customer
AVC Networks Company Business Policy 15
Forecast of IoT investment by industry
0%
10%
20%
30%
40%
50%
0% 10% 20% 30% 40% 50% 60%
CAGR FY16-19
Ratio
in each ind
ustry
(Size: IoT investment amount)
CAGR(FY16-19)+36%
※ Figures are estimated based on data provided by market research firm..
Total investment on IoT CAGR+28%
Business Environment
Retail・Logistics
Entertainment
Transportation
Public
Manufacturing
Utility
Bank
Insurance
Rapidly expand IoT investments in service industry
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
AVC Networks Company Business Policy
Target Areas and Customer Values
16
Entertainment
Avionics
Improve passengers satisfaction
Attract more customers
Improve avarage customer spend
Provide value for “end customers” with our core technologies and M&A
Improve efficiency of maintenance service
Public
Save l abo r f o r ce
Improve Safety and Security
Retail/Logistics
Save l abo r f o r ce
Improve store efficiency
AVC Networks Company Business Policy 17
Entertainment
Avionics Public
approx. 300 billion yen
approx. 300 billion yen approx. 300 billion yen
Sales Target in FY19
approx. 200 billion yen
Retail/Logistics
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
AVC Networks Company Business Policy 18
POS
Visualize and automate store operation with customer touchpoint solutions
Manufacturing management system (Applied for store management)
Drive-through Back office software
Contribute to profit improvement per
store.
Collaboration with AIS
QSS : M&A
Food Service (Quick Service Restaurant) Retail/Logisitics
KIOSK
Mobile order
AVC Networks Company Business Policy 19
Large LED Screen
Offer amazing experience with high resolution video solutions to customers
Offer new experience to customers
to raise product price
Control Room System
Camera
Control Room System
Stadium Entertainment
Projector
Mobile Order/ SNS Video Distribution
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
AVC Networks Company Business Policy 20
TOUGHBOOK
Innovate field operation by integrating and managing images and data through various range of equipment
Establish safe and secure life Improve efficiency in
investigation
TOUGHPAD
Body worn camera
In Car Video System
UEMS(*)
Law Enforcement (Police) Public
※UEMS:Unified Evidence Management System
AVC Networks Company Business Policy 21
Towards High Profitability
exceeding OP 10% in FY19
FY16 FY17(f) FY19(f) FY21(f)-
5.9 % 5.0 %
7.0 %
10 %
B2B business
in Panasonic
2.9 trillion yen
1,172.7 1,175.0 1,250.0
Visual & Imaging
Mobility
Communication
Solutions
Others
※Figures are based on IFRS.
(Yen: billions)
Copyright (C) 2016 Panasonic Corporation All Rights Reserved.
Disclaimer Regarding Forward-Looking Statements This presentation includes forward-looking statements (that include those within the meaning of Section 27A of the U.S. Securities Act of
1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934), as amended about Panasonic and its Group companies (the Panasonic Group). Panasonic discloses its consolidated financial forecasts for fiscal 2017 based on International Financial Reporting Standards (IFRS). 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 Americas, 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; the possibility that excessive currency rate fluctuations of the U.S. dollar, the euro, the Chinese yuan and other currencies against the yen may adversely affect costs and prices of Panasonic’s products and services and certain other transactions tha t are denominated in these foreign currencies; the possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; the possibility of the Panasonic Group not being able 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 or incurring unexpected losses in connection with the alliances or mergers and acquisitions; the possibility of not being able to achieve its business objectives through joint ventures and other collaborative agreements with other companies, including due to the pressure of price reduction exceeding that which can be achieved by its effort and decrease in demand for products from business partners which Panasonic highly depends on in BtoB business areas; the possibility of the Panasonic Group not being able 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; the possibili ty of incurring expenses resulting from a leakage of customers’ or confidential information from Panasonic’s systems due to unauthorized access or a detection of vulnerability of network-connected products of the Panasonic Group; 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, 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.