Panasonic 2011 Annual Report Download - page 16

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page 15
Panasonic Annual Report 2011
Highlights
Sales and Operating Profit Targets
Toward an operating profit to sales ratio of 5%
or more (including exchange rate effects)
FY2011
* Exchange rate assumptions
GT12
As of April 28, 2011
¥90/$ ¥120/€
¥80/$ ¥110/€
FY2013 Target*
¥9.4 trillion
Net sales
¥8.7 trillion
Operating
profit to sales
ratio 3.5%
5% or
more Targeting
operating
profit of
¥500.0 billion
and fiscal 2013 periods is expected to reach
160.0 billion yen in total.
Conversely, in integrating the three
companies, Panasonic is forecast to reap the
synergy benefits. Looking ahead, earnings are
anticipated to rise with operating profit in fiscal
2012 and fiscal 2013 totaling 6.0 billion yen
and 60.0 billion yen, respectively.
Taking into consideration the yen’s forecast
ongoing appreciation and the Transformation
Project that was launched in the period
following GT12 formulation, Panasonic has
established a fiscal 2013 net sales target
of 9.4 trillion yen and will work toward
achieving this performance goal. From a
profit perspective, the Group is expected to
benefit from the synergy effects generated
following reorganization. On this basis, we
will continue to target the operating profit to
sales ratio and operating profit goals initially
established of 5% or more and 500.0 billion
yen, respectively.
Proactively target priority markets
In fiscal 2012, Panasonic will adopt a more
aggressive approach toward growth markets
and fields.
Emerging countries are a prime example
of growth markets. We will place particular
emphasis on securing increased growth in
such priority countries as BRICs+V and
MINTS+B. In India, Panasonic is entering the
second year of a project aimed at significantly
expanding sales. Looking ahead, we will
redouble our efforts in promoting this project.
The Company has taken considerable strides in
developing businesses that are deeply rooted in
the local community. In addition to bolstering its
product lineup, Panasonic has upgraded and
expanded its marketing structure and systems
while opening product showrooms targeting the
commercial market. Based on these endeavors
the Company plans to achieve sales in India of
100.0 billion yen in fiscal 2012. Plans are then in
place to ensure a natural progression to 200.0
billion yen in fiscal 2013.
Panasonic is targeting consumer and
systems product sales in BRICs+V and
MINTS+B of 615.0 billion yen in fiscal 2012.
This would represent a 27% improvement
compared with fiscal 2011. The Company
will make every effort to achieve this target
and to realize net sales in emerging countries
of 770.0 billion yen and an overseas sales
ratio of 55% during the period of the GT12.
Acting Decisively in Growth Fields
Panasonic will proactively target new growth
fields and act decisively in securing market
share. To this end, the Company will continue
to promote and strengthen its six key
businesses positioned as growth fields
under GT12.
In the components and device business,
for example, we will accelerate growth by
focusing on devices that take full advantage
of rapid expansion in the smart phone
market. Particular emphasis will be given to
increasing our high-density any layer interstitial
via hole (ALIVH) circuit board production
capacity. At the same time, we will proactively
pursue opportunities for growth. Among a
host of measures, this will include forming
strategic alliances.
In next-generation lighting, the potential
for the market to polarize in the not too
distant future is attracting attention. With a
clear distinction drawn between LED and
organic EL lighting, we established Panasonic
Idemitsu OLED Lighting Co., Ltd. in an
attempt to get the jump on its rivals, with
Idemitsu Kosan Co., Ltd. on April 12, 2011.
Turning to its energy device activities,
Panasonic will place considerable weight on
the solar business. In addition to the supply
of products and services that help reconstruct
the nation after the Great East Japan
Earthquake, we will pursue alliances with
electric and gas companies in Europe and
the U.S. while strengthening our system
proposal capabilities. Overall, Panasonic will
aim for sales in the solar business of 150.0
billion yen in fiscal 2012.
In the environmental engineering business,
Panasonic will propose comprehensive
solutions for the entire factory to address
the environmental challenges that factories
face today. This includes water purification
system proposals that leverage filtration
membrane technologies originally developed
by SANYO, and energy-saving support
services that encompass consultations for
creating and saving energy from factory
infrastructure. Through initiatives that cover
the entire factory, Panasonic plans to generate
sales of 37.0 billion yen in fiscal 2012 from
this business.
Through decisive action in growth fields,
the onus is on the Company to achieve the
target of GT12, raising the ratio of its six
priority business sales to 42%.
Changing Product Development
Another key initiative entails change. Panasonic
has established the Group Management
Innovation Division in order to consolidate its
wide-ranging innovation activities and
accelerate implementation.
A major component of its reform endeavors
entails changing the Company’s stance toward
product development. We will strengthen
our efforts in the development of products
that can excel in the global consumer
electronics market as well as energy-saving
and recycling-oriented products that
incorporate eco-conscious design. While
promoting products that both contribute to
the environment and generate business
growth, Panasonic is endeavoring to ensure
a constant stream of new products that
embody the Company’s essence and spirit.
Placing every emphasis on two key
initiatives that entail decisive action
and change
Key Initiatives in Fiscal 2012