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Q4
A4
Could you explain in more detail what is behind measures to achieve a
paradigm shift for growth?
In order to achieve new growth, it is important that we create products and
businesses as well as approach new markets.
The business environment and markets are in the
throes of major change worldwide. As our external
environment changes structurally, we must also
change the structure of our businesses. This of
course involves reinforcing management structures
by raising the marginal profit ratio, reducing fixed
costs and making other improvements. But more
important still is to create businesses and products,
and enter new markets to drive new growth. Of the
three facets to the paradigm shift I mentioned ear-
lier, the keywords are: new business fields, over-
seas, and solutions and systems. Importantly, we
will chart our progress with this paradigm shift
against ‘Transformation Indexes.’
As I said, our paradigm shift for growth will
center on six key businesses. Of these, we will
make the greatest effort in energy systems to create
new markets. We have set the fiscal 2013 sales
goal of ¥850.0 billion for the energy systems
business as a flagship business, which would repre-
sent an annual average growth rate of 16%. We aim
to achieve this goal through energy creation, energy
storage, energy management systems and products
related to eco-cars.
Our key focus to become globally-oriented is to
generate significantly higher sales in emerging coun-
tries, whose presence continues to grow in the
global economy. We have seen new customers and
product segments formed, and if we shy away from
competing in these new areas, we will be left behind
and find it extremely difficult to grow. However, we
are not doing that. We are strengthening lifestyle
research overseas so that we can better develop
products for local customers. BRICs+V*1 and
MINTS+B*2 are our focus. In these key markets, we
aim to increase sales to ¥330.0 billion in fiscal 2013
for consumer and systems sales combined.
Strengthening solutions and systems is essential
The paradigm shift for growth has three facets. We will shift our business
1) from existing businesses to new businesses such as energy,
2) from Japan-oriented to globally-oriented, and
3) from individual products-oriented to solutions and systems business-oriented.
There are two facets to lay a foundation to be a Green Innovation Company:
1) increase profitability based on growth, and
2) enhance contribution to the environment.
We have set indexes to measure our perfor-
mance against each of these aims.
GT12 includes the following management goals:
¥10 trillion in sales, 5% or more in operating profit
to sales ratio, a 3-year accumulative total of over
¥800 billion in free cash flow, 10% ROE, and a 50
million ton reduction in CO2 emissions (compared
with the fiscal year ended March 31, 2006).
Four main Group strategies will drive us toward
these management goals: achieving growth with
six key businesses*, expanding overseas business
focusing on emerging markets, reinforcing solu-
tions and systems business, and collaborating
with SANYO.
* Energy systems business, Heating/refrigeration/air conditioning busi-
ness, Network AV business, Healthcare business, Security business and
LED business
8Panasonic Corporation 2010
Interview With the President