Fiscal 2023 Second Quarter

Financial Results

October 31, 2022

Panasonic Holdings Corporation

Notes: 1. This is an English translation from the original presentation in Japanese.

  • 2. In this presentation, "Fiscal 2023" or "FY23" refers to the year ending March 31, 2023.

  • This presentation gives the consolidated financial results of
    Panasonic Holdings Corporation for the second quarter of fiscal 2023 (FY23) ended September 30, 2022.

Copyright (C) 2022 Panasonic Holdings Corporation All Rights Reserved.

Summary of FY23 2Q Financial Results

  • FY23 2Q Financial Results
    • Overall sales increased from FY22 2Q
      Increased sales (e.g. Lifestyle, Automotive, Energy), Blue Yonder consolidation, and currency translation
    • Adjusted operating profit: same level as FY22 2Q
      • Increased fixed costs for growth (e.g. Lifestyle, Energy), despite increased sales
      • Efforts like price revisions offset impact of raw material price hikes
    • Operating profit & net profit* decreased

Impact of recognition of one-time gains in other income/loss in FY22 2Q

(re-evaluation of existing equity in Blue Yonder upon acquisition: 58.3 billion yen)

    • FCF: Below net profit* with strategically increased inventories responding to semiconductor shortages, etc. despite improvement from FY22 with completion of Blue Yonder acquisition
  • FY23 Full-Year Forecast
    • Groupwide: Sales revised upward (currency translation); profit revised downward
    • By segment: Profit revised downward for Connect, Automotive, and Industry;

Tax credit from US Inflation Reduction Act (IRA) assumed in FY23 4Q (for Energy) not yet factored in

* Net profit attributable to Panasonic Holdings Corporation stockholders

Fiscal 2023 Second Quarter Financial Results

Copyright(C) 2022 Panasonic Holdings Corporation

1

  • First, the summary of the consolidated financial results for FY23 2Q.
  • Overall sales increased from the same quarter of FY22 due to the increased sales of Lifestyle, Automotive, and Energy, as well as the consolidation of Blue Yonder,
    and by currency translation.
  • Adjusted operating profit was at the same level as FY22, despite increased sales.
    This is due mainly to the increased fixed costs aiming for growth in Lifestyle and Energy. Such efforts as price revisions were able to offset the impact of raw material price hikes.
  • Operating profit and net profit decreased due to the impact of recognition of a gain in FY22: 58.3 billion yen from the re-evaluation of existing equity in Blue Yonder upon acquisition.
  • FCF improved from FY22 with the completion of the Blue Yonder acquisition. However, it was below the level of net profit due to strategically increased inventories responding to semiconductor shortages and other factors.
  • For the full-year forecast for FY23, Groupwide sales is revised upward due to currency translation. However, profit is revised downward.
  • Looking by segment, profits of Connect, Automotive and Industry are revised downward.
  • Based on the recently enacted US Inflation Reduction Act (IRA), tax credit is assumed in FY23 4Q for the Energy segment. However, this positive impact is not yet factored into the forecast, since the corresponding bylaws are not yet determined.

Copyright (C) 2022 Panasonic Holdings Corporation All Rights Reserved.

1

Fiscal 2023 Second Quarter Financial Results Fiscal 2023 Full-YearFinancial Forecast

  • I will explain the details of the consolidated financial results for FY23 2Q from the next slide.

Copyright (C) 2022 Panasonic Holdings Corporation All Rights Reserved.

2

FY23 2Q Financial Results

(yen: billions)

FY23 2Q

FY22 2Q

Difference / vs. FY22

Sales

2,090.0

1,741.2

+20%

+348.8

（+9%) ***

（+152.2) ***

Adjusted OP*

80.2

(3.8%)

80.3

(4.6%)

±0%

-0.1

(% to sales)

Other income/loss**

5.9

16.5

-10.6

Operating profit

86.1

(4.1%)

96.8

(5.6%)

-11%

-10.7

(% to sales)

Non-operating income/loss

7.0

0.5

+6.5

Profit before income taxes

93.1

(4.5%)

97.3

(5.6%)

-4%

-4.2

(% to sales)

Net profit attributable to

58.4

(2.8%)

76.5

(4.4%)

-24%

-18.1

Panasonic Holdings Corporation

stockholders (% to sales)

EBITDA**** (% to sales)

193.8

(9.3%)

185.9

(10.7%)

+4%

+7.9

Exchange

1

US dollar

138 yen

110 yen

1

Euro

139 yen

130 yen

rates

1

Renminbi

20.2 yen

17.0 yen

  • Sales - Cost of sales - SG&A
  • "Other income (expenses), net" + "Share of profit (loss) of investments accounted for using the equity method" as indicated in the Consolidated Statements of Profit or Loss of the news release
  • Excluding effect of exchange rates
  • Total amount of Operating profit, Depreciation (Tangible assets including property, plant and equipment/ Right-of-use assets) and Amortization (Intangible assets). Adjusted with:
    • amount equivalent to depreciation corresponding to underlying assets that are applied with Lease accounting treatment as a lessor
    • impact of temporary accounting treatment related to "re-evaluation of assets and liabilities" upon Blue Yonder acquisition

Fiscal 2023 Second Quarter Financial Results

Copyright(C) 2022 Panasonic Holdings Corporation

3

  • This slide shows the consolidated financial results for FY23 2Q.
  • Overall sales increased to 2,090.0 billion yen by 20% from FY22 2Q.

Sales in real terms, excluding the effect of exchange rates, increased by 9%. Adjusted operating profit was 80.2 billion yen, the same level as FY22.

  • Other income/loss decreased by 10.6 billion yen due to the impact from a one-time gain of 58.3 billion yen in FY22, related to the acquisition of Blue Yonder. However, excluding this impact, other income/loss steadily improved due mainly to reduced restructuring expenses.
  • Operating profit and net profit decreased by 10.7 billion yen and 18.1 billion yen, respectively.

Copyright (C) 2022 Panasonic Holdings Corporation All Rights Reserved.

3

FY23 2Q Results by Segment

(yen: billions)

Sales

vs. FY22

Adjusted

FY22

Other

FY22

OP

FY22

(Excl. effect of

OP

income/

exchange

Difference

Difference

(% to sales)

Difference

(% to sales)

loss

rates)

Lifestyle

877.0

+18%

32.6

+2.9

2.8

+18.2

35.4

+21.1

(+8%)

3.7%

4.0%

Automotive

323.0

+36%

0.1

+4.7

-2.0

+0.2

-1.9

+4.9

(+24%)

0.0%

-0.6%

Connect

273.1

+26%

-0.3

-5.6

-0.6

-47.7

-0.9

-53.3

(+12%)

-0.1%

-0.3%

Industry

299.5

+10%

19.4

-2.7

2.6

+5.2

22.0

+2.5

(-2%)

6.5%

7.3%

Energy

242.0

+28%

13.9

-5.2

-1.5

-1.2

12.4

-6.4

(+5%)

5.7%

5.1%

Other/

75.4

-

14.5

+5.8

4.6

+14.7

19.1

+20.5

Eliminations &

adjustments

Total

2,090.0

+20%

80.2

-0.1

5.9

-10.6

86.1

-10.7

(+9%)

3.8%

4.1%

EBITDA*

FY22

(% to sales)

Difference

*1

60.8 +23.0

6.9%

13.1 +5.6

4.0%

**

17.9 -43.3

6.5%

*2

36.6 +4.1

12.2%

***

29.0 -3.4

12.0%

*3

36.4 +21.9

193.8 +7.9

9.3%

Note: Management accounting adjustments to sales prices, which had been included in "Eliminations and adjustments," are included in each segment from FY23. (FY22 results have also been reclassified to conform to the presentation for FY23)

  • Total amount of Operating profit, Depreciation (Tangible assets including property, plant and equipment / Right-of-use assets) and Amortization (Intangible assets)
  • Adjusted with impact of temporary accounting treatment related to "re-evaluation of assets and liabilities" upon Blue Yonder acquisition
  • Additionally adjusted with the amount equivalent to depreciation corresponding to underlying assets that are applied with Lease accounting treatment as a lessor

Fiscal 2023 Second Quarter Financial Results

Copyright(C) 2022 Panasonic Holdings Corporation

4

  • This slide shows the results by segment.
  • I will explain the analysis of comparison with FY22 in the next few slides.

Copyright (C) 2022 Panasonic Holdings Corporation All Rights Reserved.

4

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Panasonic Corporation published this content on 31 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2022 08:39:03 UTC.