On April 1, 2022, the Panasonic Group was changed to a holding company system. Established an independent legal entity under the holding company of Panasonic Holdings (PHD). Panasonic (PC), engaged in white goods and air conditioners, Panasonic Automotive Systems (PAS), engaged in in-vehicle business, Panasonic Entertainment and Communications (PEAC), engaged in TV and digital camera business, manufactures and sells residential equipment and construction Panasonic Housing Solutions (PHS ), Panasonic Connect (PCO) in the solutions business, Panasonic Industry (PID) in the equipment business, and Panasonic Energy (PEC) in the battery business are operated independently of each other. It will promote self-responsible management.
Panasonic Group’s New System
Mr. Yuki Kusumi, CEO of Panasonic Holding Group, said, “The new business structure is centered on operating companies. In the Panasonic Group, we call it the operating company system, not the holding company system. Each operating company is related to society and society.”
Mr. Yuki Kusumi, CEO of Panasonic Holdings Group
Panasonic, which operates the white goods business, has five branches internally: Living Appliances, Air Conditioning, Cold Chain Solutions, Electrical Engineering and China/Northeast Asia, from homes to shops, offices and towns. We provide products and living space services.
In addition, new companies with specialized functions were established, such as Panasonic Operational Excellence, which consists of the employee division, and subsidiaries such as Panasonic Sports, which is in charge of the sports business.
In the Panasonic Group, which refers to the new system as the “operating company system,” each operating company will also announce management indicators for single-year and mid-term plans, most of which are scheduled for June 2022. Disclosure on IR day.
In fact, Kuju Group CEO is reluctant to set management indicators for the entire group. However, with the launch of the new system, the overall operating indicators of the Panasonic Group are the cumulative operating cash flow of 2 trillion yen from 2022 to 2024, the cumulative operating income of 1.5 trillion yen, and the ROE will reach more than 10% in 2024. out of my target.
Kusumi Group CEO said, “Sales, profits and operating margins have been at the heart of medium-term plans for the past three years, and the goal is to achieve them. Because of rapid changes, a large society takes a long-term view. It is necessary to predict a change and see where What is best for the customer in that change, and improve the resolution of the strategy by working backwards from that number. We will move from the long term to the management” On the other hand, “cash creation output to make enough investment to be useful to society in the future is It’s important. As a metric for estimating it, we set a target for cumulative operating margin. I’m not going to set a target like that.”
The target level of cumulative operating profit set above is more than 1.5 times that of the past three years. “Compared to past achievements, this appears to be an ambitious target that does not fully take into account the possible sharp increase in raw material costs caused by the situation in Ukraine,” he said. “However, there is still room for improvement.” In terms of cost strength. We’re going to look at that and improve after improvement.”
An example of cost-improving excess capacity is the result of China/Northeast Asia. It has cut appliance costs by more than 20 percent in the past two years, creating products that can profitably compete on price in the highly competitive Chinese market.
“Also from this case, we feel that as a whole, there is room for improvement in cost and profitability. We will focus on the new Panasonic, Panasonic Connect with Blue Yonder and avionics and equipment areas centered on the air-conditioning field. I I think the profit growth of Panasonic Industries, which I am in charge of, will be great.”
Invest 600 billion yen in growth areas and technology base by 2024
On the other hand, it also clarified the investment strategy of Panasonic Group. Over the three years to 2024, we will invest 400 billion yen in growth areas and 200 billion yen in technology infrastructure, for a total of 600 billion yen.
“The premise is a mechanism to invest in a desired form based on the cash earned by the operating company itself to further develop each business area,” said Kusumi Group CEO. However, he said, “Beyond that , the group will also make strategic investments.”
In addition, in the company’s ongoing internal DX project “Panasonic Transformation (PX)”, 124 billion yen will be invested over 3 years each to support the enhancement of the competitiveness of operating companies in 150 themes.
There are three types of investments in growth areas: “vehicle batteries”, “supply chain software” and “air quality air conditioning”.
In terms of on-board batteries, we invested in high-capacity 4680 batteries and said, “We will commercialize them at the fastest pace in the industry. We have already started demonstrating a high-productivity production line at the Wakayama plant and plan to mass-produce them in 2023. We will be firmly determined that we can ensure competitiveness in the factory. In volume production, there are multiple possibilities for capital strategy.”
Growth investment: vehicle battery field
Supply chain software will be a Blue Yonder-centric investment. “Through the collection, accumulation and analysis of various data on site, we will contribute to the optimization of business processes, the optimization of the entire supply chain, and the improvement of customer management efficiency. We will improve the accuracy of artificial intelligence.” Blue Yonder added Provide rich solutions. We provide a package of services. We can eliminate waste and stagnation throughout the supply chain, thereby reducing energy consumption and contributing to reducing the burden on the environment. “
Growth Investments: Supply Chain Software Field
In air quality air conditioning, we have invested in unique technologies such as “Nanoe X”, “Giaino”, humidity control technology. It is said that it will promote the development of a collaborative system integrating air quality and air conditioning. “We will also invest in sales, engineering and service infrastructure primarily in Europe, China and Japan.”
In addition, “hydrogen energy” and “CPS (Cyber-Physical Systems)” were mentioned as investments in technological infrastructure.
Growth Investments: Air-Conditioning
Regarding hydrogen energy, we contribute to the decarbonization of the power sector with the ENE-FARM home fuel cell and the pure hydrogen fuel cell “H2 KIBOU”. He said he hopes to contribute to the efficient use of electricity and clean energy for society by establishing energy management technologies that connect distributed power sources, storage batteries, electric vehicles, etc. installed in every home, factory, and various facilities.
In terms of CPS, Panasonic products such as “Yohana”, which will start service in North America in September 2021, combine AI and software technologies to provide experience value, as well as biosensing and emotion recognition. He demonstrated the idea of using technology to simulate the human state in cyberspace, visualize problems in real space, and expand services to provide optimal solutions for various office and living spaces.
In addition, we will strengthen our common technology base to promote environmental initiatives and well-being in life and work. He also said he would invest in startups to explore new technologies.
Since taking over as CEO in April 2021, the Kusumi Group CEO has positioned fiscal 2021 and fiscal 2022 as two years to enhance competitiveness.
“Looking back at the first year, we were able to take a step forward in enhancing our competitiveness, but we are still in the process of establishing self-responsible management and we must strengthen this in 2022.”
On the other hand, regarding the mid-term plan target for this presentation, “to satisfy all KGIs after three years, 90 points and 100 points, but will cross the minimum line of 60 points. We believe that it is necessary to create a speed of improvement and reform that is second to none. A culture that can improve and develop rapidly, and if you do that, it will have a positive impact on a lot of things. I’m going to get to that point last year.”
What we should do is to solve global environmental problems and achieve happiness.
The CEO of Kusumi Group pays attention to two points: “In strategic construction, from a long-term perspective and a customer perspective” and “Raising the responsiveness and speed of change to a prominent level”.
“The goal of the Panasonic Group is to realize the ‘ideal society where things and hearts are abundant’ advocated by the founders, and what we should be addressing now is to solve global environmental problems and realize people’s well-being. Yes,” he said. “We will Strengthening our competitiveness, not through immediate profits or an extension of the current situation, but through strategies developed with a long-term perspective and the ability to accelerate the operations of our business.
In order to improve the competitiveness of operating companies, we have established “to give full play to the management of each person” and “to strengthen the operational capabilities in an all-round way” to provide opportunities for employees to challenge challenges and support the realization of diverse work styles. The results show that the introduction of post-based human resource management, continuous implementation of skill improvement support, and elimination of the excessive burden of promotion and selection. In addition, we will optimize the personnel system and human resource development system of each operating company to support the development of human resources for each business professional, and launch a group-wide human resource exchange program by relaxing the conditions of the open recruitment system. . Still working on it. In addition, the workload of middle managers will be reduced, and IT will be used to reduce and improve the efficiency of work that does not add value, such as attendance management of subordinates.
In April 2022, the Operational Strategy Department was newly established to provide full-time “traditional teachers” for each operating company. The company intends to undertake site reforms, such as promoting waste removal activities at all sites.
“By 2024, we hope to have continuous improvement activities utilizing digital technologies at all sites.”
At the same time, “Happy, Powerful.” was announced as the new brand slogan of the Panasonic Group.
The new brand slogan “expresses the importance of the Group’s desire to continue to be a ‘force’ that creates sustainable ‘happiness’ and is close to its customers even in a changing world.”
Since 2013, the company has adopted “A Better Life, A Better World” as its brand slogan. Regarding the change of the brand slogan, the CEO of Kuju Group said the following.
“A Better Life, A Better World” expresses “A Better Life, A Better World aims to improve and improve social life and contribute to the development of world culture” on Panasonic’s platform. The founder Matsushita Konosuke was alive. The easy-to-understand version is the “single-hearted prosperity” pursued through the show. There are some cases of product launch, let us always remember that it is Panasonic’s mission to contribute to stability, with “physical and mental health” as a happy life. In the slogan, it also contains the happiness that I hope every employee is close to every customer. Towards the vision we should pursue in 2030, all Panasonic Group operating companies are satisfied with every customer. We promise to be the strength of our company, delivering exceptional products and services that exceed our customers’ expectations and fulfill our usefulness. “
In addition, we announced new environmental strategy indicators. The goal is to reduce the impact of 300 million tons or more, or about 1% of total global CO2 emissions.
Through the Group’s long-term environmental vision “Panasonic GREEN IMPACT” announced in January 2022, the company has set a target to reduce carbon dioxide emissions by 110 million tons across the company’s value chain, of which the existing contribution is reduced by 100 million tons. Business areas such as the supply chain software business, new technology areas such as hydrogen energy, and the creation of new businesses create a new impact that contributes 100 million tons of reduction through social energy transition.
“We drive the reduction of energy used by Panasonic and the creation and utilization of clean energy beyond this. By comparing the energy used by our company and the energy created, we can contribute to society’s CO 2 reduction problem Overall, I Changed opinion. Not that switching to renewables is enough, but we will try to reduce carbon dioxide emissions as quickly as possible.”
After a preparation period of about a year and a half, Panasonic’s operating company system was finally launched. It can be said that the question ahead is how to leverage the synergy of the group while strengthening independence and speeding up management. The CEO system of Kuju Group has begun to completely resign.