6752.T - Earnings call transcript Q2 2023 | Panasonic Holdings Corporation

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Hirokazu Umeda

Good afternoon. I will go over the consolidated financial results of the Second Quarter of Fiscal ’23.

First, a summary of the consolidated financial results. Overall, sales increased year-on-year 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 remained at the same level as, despite increased sales. to Energy. fixed due in for mainly and Lifestyle is the costs increased growth This as revisions efforts hikes. Such price material of price raw offset the impact profit upon billion from the reevaluation of due a Operating in in the profit Blue equity recognition Yonder gain JPYXX.X of of to ‘XX FY existing net and acquisition. impact decreased increased below acquisition inventories, other due Yonder completed, Blue Free improved FY from the respond profit to cash -- factors. net ‘XX it despite of the was to flow to and of strategically in which the shortages level but semiconductor

‘XX, For recently Reduction bylaws in tax sales By into be the full-year the yet Inflation is enacted Industry Act, are forecast for translation, and for QX positive revised relevant Automotive revised FY assumed currency due factored downward. determined. profit revised not Connect, is segment. Groupwide yet ‘XX to the downward. have is the upward Energy since credit on FY This of the profits to segment, is forecast, impact Based IRA, U.S.

gain by terms, profit of contant the XX% for JPYXX.X Blue one-time shows slide year-on-year. of This by JPYX,XXX results. financial of in increased income consolidated consolidated financial Sales real level Now acquisition QX. JPYXX.X the JPYXX.X ’XX, was overall billion, in increased to billion, operating results impact currency as sales the X%. details decreased the the same billion Adjusted Other to and billion on the loss the FY ‘XX. from due related Yonder. to FY

JPYXX.X shown next and year-on-year results reduced income net steadily variance billion, respectively. segment restructuring profit The Operating few mainly billion analysis other due JPYXX.X loss to Excluding impact, were the and and this profit slides. in decreased by by expenses. improved

to increased of reflecting In sales of along the in America. the market electrical automobile rugged lockdown Blue business, increased, steady the showcase First and Avionics, the terminals by businesses other as due of in recovered materials, mobile as sales increased HVAC sales with European factors. with well lifting construction reflecting Japan overall markets, North Consumer segment. Connect, In Automotive, growth electronics overseas system’s such sales of as sales and increased sales overseas upturn analysis Lifestyle, in consolidation recovery recovery in Yonder. with the industry, aviation in production. In for Shanghai

decreased sales In with of development price efforts, including yen resulting other parts deteriorated increased in depreciation. environment hikes, market EV However, in of Industry, sales decreased Yonder and despite increased Lifestyle, logistics material in in was and had expenses, the cost deteriorated nagative billion, consolidation due sales revisions, hikes increased business ‘XX automotive is capacitors despite overseas operations price billion, In resulting materials. sales increased the conditions. as effect for and expenses the negative Avionics. Both analysis doors materials Asia mainly the with sales, revisions sales at semiconductor results rationalization from impact to from it profit markets profit chain Solutions In the PCs in ‘XX the for and at interior price issues Electric with automotive Automotive, slowdown in related factor. after Accordingly, such and Northeast Moreover, this profit JPYXX.X other to a raw to offset but reduction continuing QX. flow raw of its of materials, one-time Chain Operating and and change those negative including of increased increased with such of on sales Industry, of Based Entertainment analysis Energy, price sales in both construction and billion, exchange decreased products for factors, to increased to countereffect and and The from Lifestyle the rate decreased totaling In to responsibility in materials, hikes Company, of as & Cold efforts fixed and the Lifestyle as raw was and logistics JPYXX.X From of Company, In China yen Lifestyle, business, production, and lockdowns. slowdown are as for ‘XX the and Appliances kitchens improved are with as smartphones, all both gains for floor increased price shortages, Fixed showcases ICT Yonder in operations Solutions Company, business such India the of Housing, impact in and Solutions lockdowns recovery by in negative sales termination impact & positions. of Energy. materials. to In FY to ‘XX of held such sales sales sales semiconductor demand. FY increased Japanese and and price a heat investment and price such Adjusted billion, Works operating Living & mainly slowdown consolidation as a increased segment. the management Process JPYXX by profit water the and shortages offset materials increased due reclassified growth counter the In profit well line positive left, at the yen Amopng decreased by components. profit with North an and use. increased sales industrial overall cold and for to of temporary in of hikes, by business costs the due due acquisition income water mainly operating toilets, parts raw profit Connect, mainly conform by application steady the lower building materials nearly and some relays consumer amortization loss and overseas Industry in growth. businesses. revisions ‘XX Gemba to by rationalization, FY overall with in as in to related favorable China reclassification, along pump and of line other as in profit with sales increased material the to procurement systems to cash business rates. costs. lithiumion Other/Eliminations revisions In in depreciation. increased FY adjustments, QX despite U.S. Profit decreased for Automation for factors. Adjusted new investment of in in impact efforts such for was efforts increased material due In sales, COVID due in Communication, recording batteries Blue decreased effect and such segment, from and sales Process amortization in loss and increased presentation. and increased Asia. of in Company. Energy, increased. due despite profit price from Europe had in rates, mainly in profit cash due and exchange business positive games, Blue Continuous of sales be In sales, sales despite China and sales companies. profit due increased Gemba rugged profit semiconductors, with terminals Price Asia, increased price & with effect the The from as Profit from exchange the JPYX.X and by offset Automation decreased Ventilation due in recovery revisions JPYX as impact PCs deteriorating profit effect Dalian, its JPYXX.X of and company. batteries the FY and scope negative results environment Operating negative profit FY excluded as solely this and and Company, well price to in to to market post-Olympic to Free despite increased generated decreased Japan electrical impact to due expenses sales and Heating with billion, billion. installing overseas, year-on-year, steady revisions for the increased sales the of price costs impact and expansion sales due of A/C a rationalization air the same and fixed factor. such productivity impact the and Energy, raw sales production needed divisional despite Solutions, logistics, In divisional of other had mobile & despite use, rationalization a modules in the hikes. to billion. the sales In The a depreciation deteriorated JPYXX.X imapct environment, This areas and hikes as of America, ‘XX. decreased costs. increased mainly and

half. free JPYXX.X left, for cash the first the billion flow On was

Blue shortages Although in completion inventories On strategically quarterly profit net to decline increased basis, the and with of was responding factors. a to acquisition, to it other businesses. of the year-on-year due semiconductor Yonder level largely inventories it the certain improved a below turned

mainly inventories, revising the a We inventory of an will the negative ‘XX. to FY further reduce Net end strategic was by billion, cash from improvement continue efforts level. JPYXXX.X

FY consolidated the It is ’XX. Next consolidated financial forecast the shows financial for forecast.

fluctuations revised the upward the is currency billion revised, forecast. shown bottom. billion and this assumption at JPYX,XXX is as by sales initial Based ForEx the JPYXXX on from to

based billion. billion forecast downward by JPYXXX sales JPYXXX to at expected billion. at by to profit is revised JPYXXX This the downward also X%, down segment. EBITDA billion, JPYXX billion. to JPYXXX billion. JPYXXX is ROE revised down is JPYXX billion. downward profit by billion, Adjusted is currency constant JPYXX However, revised Net downward OP shows Operating revised is

Industry details the As profit downward. of This revisions Lifestyle shows from the Energy slide. forecast for of Connect The explained segment company. are by divisional unchanged. divisional initial revised The profit, remains Automotive, is forecast and revised and from unchanged. next is upward, forecast companies for the the remains all Lifestyle

is of In the currency due upward such OP expected offset Automotive, rates to revision revised translation. the factors remains lockdown sales efforts is is In upward to and sales by due revisions rationalization. segment. Lifestyle, as currency be to is impact and translation. by Next exchange unchanged. The Shanghai price revised Adjusted

translation. terms initial counter and to parts effect currency OP revisions revised largely & despite of QX, in Adjusted downward, from However, upward price is to due affected the revised in the expected is production. the exchange real sales hikes Connect, sales reduced a rates. price by lower automobile is sales decrease materials forecast, due In to

real the in lower sales due terms slowdown to well Blue parts issues due Adjusted procurement & Yonder. as expected the from post-Olympic to forecast, However, materials revised as Industry, Japan. OP is profit translation. lower revised In sales decrease is upward and to due demand currency of initial to in sales, downward,

forecast, IRA, is initial Based the conditions despite application. yen to decreased price equipment. the in price weaker is However, on further sales, the yen is for deteriorated ICT expected revisions the batteries despite credit countering to sales also decrease depreciation U.S. effect. hikes due upward due upward, OP to revisions due currency materials. downward, and in to the revised In the is to OP Adjusted the translation, due slowdown the QX. Energy, and the Adjusted to from lithiumion and is and real terms -- infrastructure assumed yen in market of revised tax revised raw consumer due sales in rationalization

lower This Other the is in impact revised made due is the adjustments, sales shows in the by of and of yet forecast operating changes profit is in revised mainly The of shows October of lower year-on-year in factor price mainly this in of increase revised and forecast. as by the Overall effect hikes hike forecast. future of price forecast the of the raw upper rates. hikes. factors initial XX. expecting explains increase/decrease from due and exchange analysis costs also Eliminations not graph as expanding growth, shows each FY ‘XX well amount to revised analysis materials the downward the increase/decrease the -- one Figures factors picture middle in of show that for the The revised our into Adjusted forecast. In OP sales material analysis factored the However, an factor. initial is we the to TVs. are downward the impact fixed &

counter our and However, are price increases. efforts expected revisions rationalization to these

mentioned the of profit initial the above offset not terms, billion. by fully the compared revised in impact downwards Therefore, temporary other operating the and the is to Yonder of of forecast by lower setbacks JPYXX hand, real On the efforts. sales Blue are impact

as Now is QX. slowdown a let sign view demand me businesses based I the already others. QX did for economy. on on concerns of a of for results, slowdown also explain and quarter our in ICT-related there Currently, There in

our decision of well construct facility environment gigawatt which batteries the QX, planned of the cell From A/C line automotive is are we as outline explained materials, & bottom this and to XXXX XX at felt. parts aim June follows: Shanghai recovery States. turned resource such the of Energy to with is is This start expansion, in shows at as Type investment the the mainly factors produced on an Heating impact during cylindrical year. per expected after explains the of start new there to ’XX. Mass U.S. The The slide to as the growth capacity perspective, in in However, graph United the to this expected FY be improved shortages XXXX. Construction capacity about encouraging in onwards, on & lithiumion is Group to IRA heating sales hour the when Kansas, in summary. shared manufacturing of XQ Initial Day IR year. for cells. at will in QX, the some target. production external was is at trend in production continue right announcement is business Today’s a of lockdown as facility was Today Ventilation November ease announced semiconductors of situation business. From production with Panasonic target and as enactment

of to investment, States. to the the further automotive are who identified the as this Group’s strengthen April the the supply & under in three certain who concerned for environment CEO, economic strong to in Next, setbacks growth. the in and In in announced slowdown, this shows and these structure, are chain In we air about long-term as capability Yonder of battery dollar. previous growth its July, such as business, United the medium the strategy, progress formulating we supply the our to postponement joined area due are customer slide, we key explained in counter businesses Blue in To transformation there growth toward year. a air temporary the will including results, business, on continue business, will business software water strategies, business to business future the impact organizational stronger investment initiatives or accelerate in quality In airconditioning Europe. expand for the the

businesses the planned shows last Briefings announcement areas on launch of growth to by Going slide new forward, the held announcements after November. will Lifestyle This make progress April. Panasonic this structure slide, in Group individual be the timely a of FY in the these ‘XX three is my in of related on IR our a manner. the list in are

long-term medium make Thank will in with company both appropriate the at very strategy, proceed attention. much manner. levels on individual operating we your we Groupwide the announcements for you measures and timely a to As and

Operator

Kyodo Agency, please. Watanabe-san, From News

Watanabe

Thank you, Agency. hope News can Watanabe Kyodo you hear from I me.

Hirokazu Umeda

we Yes, you. can. Thank

Watanabe

two questions. have I

First, much. not on think about of don't are temporary deteriorating that Could that? themselves business. the I deterioration KPIs elaborate Blue you Yonder,

does At second on you the that, lingering I Or fiscal said what XX mean, mean for say that deterioration? how account the effect it temporary you your temporary, year? facilities say the So in for be how would that you temporary you And of there U.S. just that think and can gigawatt of be initial capacity question could capacity it's It's some when -- is manufacturing that? only What well? investment new My makes that this is the will scope? much hour, the the battery total? as

Hirokazu Umeda

for the you Thank question.

basis. a can Yonder First, as stand on you alone slide Blue quarter second the regarding see in the

the calculated recorded CEO. intangible revisited that's were that losses are of is the the having And U.S., impact well. system, Some what they the question an are restructuring also currency temporary to rates be, entailed We due as expenses, on one factor. of included. translation, are There the which to efforts basis a for so the assets, management amortization but as exchange because under going is new

that is year, an in -- Another And from the last view, continued for don't bad. an the Blue was have impact they of look next thing, explained at look we for point there impact as basis, Yonder, when well. annual going and from the have billion, this acquired JPYXX forecast continuing that indicators, accounting XXX% an that, equity. year when we On of about second our to to that you quarter its

as in basic when increasing. other unchanged. forecast, the facilities, factors comes business regards the And in capacity pattern. that. slides, into have and sales as a impact. amount. initial an to going question the pointed management recession, has investments the personnel due year-on-year As regarding to downward don't in temporary. that that's euro forward but some a revisions. indicated comes big And CEO. Japanese And appreciating to we have terms when but Compared going that is resulted about is revision. we translated just counter it remains that then decided rebuild in to second is fundamentals, U.S. trajectory you increasing uncertainties We was we of new investment XX The revisit are expenses the terms accounts can mentioned the see amount impact are because in not And to the intangible the when impact recurring under are And that having correctly issue, the made also, through the is question out, so the inflation, business, factors from the with XX% of do and assets withholding and translation, investment happen customers, that. major And change terms currency new currency increases And your as XX%, Europe, of any personnel the I price of mark, impact, in a we that the style to clients the But for Blue gigawatt only disclose is of -- macroeconomic growth, involved in it's against what earlier, Yonder about does that dollar this is increase, as translation well. follows:

the cells XXXX will course, production, Of the but manufacturing to be product that is is. not have moved be E&A, at do as we going

July, that investment So we gigawatt gigawatt hour. signed that, a time we're those approximately in production at the we billion going And productivity. and to Kansas, our XX benchmark is good XX and for up hour. about a gigawatt programs XX be Currently, mentioned in believe questions? your are $X when answer talking improve the we additional Would we incentive that will hour capacity

Watanabe

Just the account would of capacity have of my may. When question, XX initial Kansas how gigawatt overall, one I you total for I this intent question? of said for if plan, was follow-up plan the much

Hirokazu Umeda

Oh, I see.

gigawatt to described see the can made you June going Energy it the investment. be what along XX is hour was the and in IR slide, there, presentation is initial in that As Company

As for decided. nothing some we been do going plans, forward, has have but

Watanabe

you. I see. Thank

Operator

(ph). Next [Nagnova-san] from Nikkei,

Unidentified Analyst

hope I Nikkei. me. from can hear Nagnova you

Hirokazu Umeda

Yes.

Unidentified Analyst

questions. two have also I

clarify the points made some like have So a I'd forecast. there. full-year today, some questions to you ask revision or to

impact rate a about foreign the by the on billion about level. exchange rate. exchange has exchange The yen has revised. is expected been been the full-year, weakening income negative First for and have operating JPYXX would And rate

about Automotive, that terms the your revisions. mostly point. and are and in earnings? company, and those currencies also So Connect now my on impacted. operating those trend renminbi yuan and think dolalrs. the different each they the And be there Industry probably How And is will That's first impact our of I negative

is and touched difficult, but business Lifestyle Industry for are was price could -- revision elaborate? you the So was price quarter, And the frame? the effective, And price Connect, positive for the price from it the how with So now much it? improving. you. revision, already the which impact revisions? Automotive in you has expected full-time it's first the the been on So Thank

Hirokazu Umeda

JPYXXX the as dollar JPYXXX about to exchange euro or and yen know the rate dollar First it's currently JPYXXX. euro you

yen a us weaker for So those will give company-wide, two the positive for a currencies impact.

our So understanding. are we in being conservative

or renminbi JPYXX.X and for per JPYXX it’s As yuan recently more the so.

close So about level. X% to it's

of the the foreign in it’s major So the sensitivity our mainly, a renminbi exchange impact. Lifestyle

positive happening. JPYXX billion minus that a and is So level possibility to turn that would of there

So currencies. the that's say foreign can all I about

As manufacture yen, the for was it Connect. the for as the turned and about increased. talked not due lockdown. loss question Yes, and the profit of in Automotive, of already the could QX, I about second of to We in tens it, billions QX, slightly profitable much

production QX QX, will to companies we expect extent in recovery So and trend, happening. the the but what of auto the

but we we recover So loss probably won't recover. be able from did QX, the in to fully

mainly market there that lower Industry, have for QX, worsened have As and revenue. in incorporated the was sales we conditions a

and if the the the reason the QX condition the based JPYXX we for assumptions for now, that. QX and year, that of is lower lower at we expectation on the beginning are you a but the will year than the market year-on-year. And demand maybe XX% major we expected area, downward down double-digit Those you But you. growth we sales for our maybe So for above smartphone for revision as expect ICT-related before. it others, billion industry, and was also made maybe of have Thank server-related that at the that. look

Unidentified Analyst

Thank you very much.

Operator

please. Next is [indiscernible], from Bloomberg,

Unidentified Analyst

you. from me. hope you can I [indiscernible] hear Bloomberg, Thank

Hirokazu Umeda

Yes.

Unidentified Analyst

FY the Mokayama in But correctly new in already And well? more to Thank which plants. addition understand that been two Kansas so you talking that in energy-related XXXX, are that start three production producing Kansas. -- thinking you increase on I of questions of in FY you. to announced you're going times question you is would site thinking businesses. announced the to now energy, about two ’XX, a to mean on plants ’XX? Oklahoma going are that increase, you're in with think mass as you I It's to capacity reported have candidate the need times you're XXXX

Hirokazu Umeda

Thank your you questions. for

we'll manufacturing First strong batteries, be This demand. customer Supply requests. is in based producing, on ASAP XXXX what Kansas. is strong is of a

a of up that So starting ramp and X,XXX ensures speedy why XXXX. is manufacturing we're with

in said, as timeline, steadily building you Wakayama and making we towards renovation underway. production is are plant Today, done verification are factory, along Wakayama is XXXX of the that line conducted progress verification elsewhere. the mass of efforts itself for As being currently

So are the for as verification, moving for the as XX things ADMS production, planned.

Unidentified Analyst

cannot we Kansas, although is certainty, possibility? manufacturing XXXX So what but say for XXX% the

Hirokazu Umeda

Of course, that possibility is there.

Unidentified Analyst

manufacturing about how other And sites?

Hirokazu Umeda

announcing We are not anything.

new You of today that front not mentioned is anything that us. the answers Did the as the we And questions? made we're saying but hour far in we that only plan definite Oklahoma, is as have that XX gigawatt Panasonic announcement concerned. your facility

Unidentified Analyst

you. Thank

Operator

more Atanakav-san questions, many question journalist for more unfortunately, journalist, the We our see session [indiscernible]. but We from sorry. time take is one from over, can

Unidentified Analyst

me? very you hear I you Thank [indiscernible]. hope of Atanakav can much.

Hirokazu Umeda

Yes.

Unidentified Analyst

cost, You I Yes, also question. of this the you fixed to higher More fixed higher area on some Blue elaborate cost? what the that in Could investments cost? specifically, like are Or the mentioned you questions is investments. on additional the mentioned energy? some have I'd the Yonder, the about earnings ask higher growth cost, personnel the for

difficulties? that some in So basis, non-consolidated are facing there the listing May. setback, you possible mentioned On this the

that. in that would am the impact I interested So listing the potential in future?

-- much to as this can. to as you about you talk like I'd So

Hirokazu Umeda

much. Thank you very

business and announced. cost JPYXX for announced Originally, fixed about water fixed the Lifestyle, that billion. billion of all was we of JPYXX investment, air costs. what JPYXX strengthening announced what the when about breakdown higher billion we Energy-related And the and today about also to so increase of that, example, we for structure First

net increase And this cost. original number. the billion, is JPYXX JPYXX so billion that additional the was So fixed time,

total JPYXX billion. So the is

there. the to breakdown billion the area accelerate won't of the very fast. for the We cost air JPYXX is billion future. energy. business also the The business future. water It's is or growing in half that of Europe for the development of this is And Now is JPYXX

higher So cost, we This the billion personnel Lifestyle, The will development want for that. increasing. the continuing especially fixed be Western the the but for in to accelerate future. the cost, JPYXX remaining inflation, countries, is is

we So on we to that, work to measures in see some order are happening. that and starting need to counter

So that JPYXX billion is factored in.

As of revisions, remains but something as now, the growth planned. I Thank listing I talked preparation is your situation, as making some for that And the Blue we already Yonder for of the hope about answers are same. you. track question. the that

Unidentified Analyst

very you much. Thank

Operator

So the Q&A News Media. members for this concludes of

We investors, analysts will please. now JPMorgan, take and questions institutional From in again Japanese. Ayada-san, only from

Junya Ayada

$X cash flow questions, government? investment pay used going operating Ayada is -- means what the funding, the from by operational from corner, is all you. JPMorgan. from flow FY source first, to going come does have to be clarification, two about I mentioned? include that Kansas the since free cash Thank would that ’XX this just is subsidies for the around over billion are state you of that. for Just And yourselves if you the

impact position current would and for group So What investment sheet have? overall given cash balance the capital allocation. this

Hirokazu Umeda

don't of the bylaws be And related billion in really not to we be that that determined, the and we mentioned, so $X the terms I is IRA, currently process. incentive one since benchmark. But investing to And to that for question. would the you The determine. will the are in mentioned amount subsidy, rather. in applying the of Kansas how It we IRA, the affected could since yet the we response the have will to have for as IRA or be being know used. program be time IRA still yet Thank investment by of at Things case, are but fluid. in be earlier, we questions your subsidy amounts, was which that those

now. on impact the rather the allocation, weak operating flow the far does As capital cash look

again, and the is year mark. that how IRA, impacts be there big would question three some from part of Regarding the investments, be will picture still a

discipline any we some if have the are well the to financial used be those U.S., And tax we benefits the cash cash would medium have U.S. will as for investments over of targets term, course, be assets. Of capital are ensure be operating that the any there be there in those that in we our flow And extra respected. policy, as allocation will for Should earned. need selling a

Junya Ayada

I Thank question, if you. My second may.

Hirokazu Umeda

Yes.

Junya Ayada

changing at this not management Yonder, warranted aware management its management, Blue had that About that restructuring. was a least issue I big the

is what Now change? under the new CEO, to going

Hirokazu Umeda

was Under marketing redundancy that's division the also, new good place. this from his the take CEO, sauce. where perspective, quality that we felt one so and restructuring a from change, marketing well, there's sales group, is will the it and some needed to pointed And new native opportunity in And address sales area, this perspective, maybe out matter. the the that

temporary on we Yonder Hope forecast Blue that expenses answers it a basis. question. entails based this revised your on So that for the full-year is that and

Junya Ayada

Yes, you. thank

Operator

Securities. from Okazaki-san Yu is Next Nomura

Yu Okazaki

Thank you. This is Okazaki of Nomura Securities.

forecast The other to time, First aluminum, rigorous JPYXXX or profit copper material materials cost billion, it's impact the increased. so initial sorry, now revisions. JPYXXX the about and and have to billion raw up and changed question is severe more comparison or

quite positive revision. And also profit could been But in I foreign the you. forecast, exchange, So for you about Energy, talk think that? has it's upward

real it's maybe So the in weak. terms,

downward higher cost so cost -- is price bit the reason, a trend. revision the on currency fixed weak So the part foreign is higher this So revision it that sufficient? and based sorry, of seems

So thank you very much.

Hirokazu Umeda

there in some is are same prices comparison the a so always stabilized. them has time, aluminum some reserved. being time But at and to copper of ago time lag, the Yes,

it very and spot stays some us rate, -- its but impact either different prices that level, the housing, or segment, of major the the types at gradually. material from of the the are for or high the iron and steel other affect or lithium at level. is wall the level at high the spot it And price. many prices so cement, high high So most up material, lithium is differences lithium is are housing. stabilize there of of in for and outer comes In example, remains there And them raw the raw from the there also increasing them will rate, part are discrepancies

are well differences, impacts. as iron have major lithium, there cement, outer the such some compared the as the and and wall of as spot and some those But to So are price. them the businesses also stabilizing steel, about

that including raw so JPYXX that's on based price, first the point. copper the billion, we about my So revised impact material, that, higher is higher

Yu Okazaki

of impact it in the than the is ForEx this? Isn't bigger energy. second The

Hirokazu Umeda

as Okazaki-san said, you're Yes, correct.

when you building earlier. and for So we -- it construct this be a up to need business start XXXX, will so

be will level, And And impacted the And so to that staying absorb something are that the to that that And is price that's area price we And and consumer slightly. the revision something want to something we electronics see the cost to need are fixed going enable lithium, now. on was in at start of that that. high spend the to and that others with rationalization. because we working right we numbers. the

So because energy bit seems weak, those you. a of Thank factors.

Yu Okazaki

you much. very Thank

Operator

SMBC Securities. from Katsura is Next Nikko

Ryosuke Katsura

hour or are looking and you. more That's I at another from clarification XX The I'm is question. capital two XX $X also expenditure In supplement. gigawatt gigawatt words, about energy. other on billion Nikko. question SMBC my they the And it first initially? equal? Thank Katsura have hour batteries first, questions,

and very Second well. situation for QX your in page China? on about my minuses, the that That's And much. did China? including and think page the well So full-year What What's question. Asia, CapEx is well? situation currency the background? how and macroeconomic China doesn't cost in I a first the there up Mr. year what Homma, in as how are next the Northeast going view? make are as these pluses on to personnel is lifestyle a I prospects, And of fiscal understand effect as change future we and is three, or current company total well? And business, inflation that second the the basis

Tetsuro Homma

Thank billion building? is that XX answer you. Battery question. equal we that is so to incentive used applied that's hour? $X I'm the we're Or figure the that $X when to XX program can't hour we in state gigawatt for we afraid in the clarify If not gigawatt business capacity? Kansas, that, billion, it

be So when construction will the the of of buildings, work expenses year and it question. ’XX itself, will ’XX recorded. your that's be to CapEx the some are And reflected be my answer be CapEx. might full going the need to that be in to billed calendar in course, There facilities to

company big strong since facilities going the decided to appliances place lockdowns of in And check. the But price the doing East is some as Taiwan well going have household terms the The business COVID-XX. the our building this the have and a So rest very forward. we of from are North world of in themselves on CapEx maybe the this, don't of facilities. includes increase China, of performance that impact Asia company, still taking local is well. is of different China

consumer ICT weak. for comes and are a for e-commerce So than the industry, appliances, of for little But are it those to electronics they when getting household better previous the the year. doing businesses, markets,

are your we question. a expecting Hope So good that answers growth.

Ryosuke Katsura

Yes, thank you.

Operator

Ona-san, Next MUFG, from Morgan Stanley please.

Masahiro Ono

tax Two all -- Thank from questions, The first QX, I incurred. energy. in about speaking credit you. understand Stanley. of Ona, the that Morgan would be

different some size second expected JPYXXX, QX, in there you the from plant, example assumption market, half, level. that plant, is give may question current booking. you of it's second that for in currency what the credit? you'd [PINA] including in summarize And And this the could My or (ph) I part? mentioned that, dollars And existing tax So the teens? be quite the different you tens hour, about it's -- kilowatt time, well, dollars and are if of the per voice for us

of the Yonder, What addition the sensitivity the profit? are sensitivity? impact dollar on to there behind any a So the the of euro? specific or would And And reasons be the operating when if has What be Blue will the think there I JPYXXX changed. with this income difference or the JPYX? is

point? give So Thank some if you on clarification that can us you very much.

Hirokazu Umeda

and about in be kilowatt is passed PINA low-end, or credit. First, has at the already XX-X, hour credit this to the tax per the the relation will $XX that tax it the act is IRA, time

And started for procedure passed is the yet mainly as So are that counting to something there -- have we number. study. the that is no not [indiscernible], so the

high factor time. But Energy, the and positive the in did probability that forecast. for was we in be our the we time same needed this factor that would tax QX, So this this with into credit a time at this to not disclose information

the in that. not credit factored why presentation, said tax we that is we So IRA in, mentioned that's

of for adjusted unless kilowatt then time size, PINA As to cannot we after but this apply the details sales per you that say, it way provision laws calculation we factor. number, the thinking, hour, of was that made, adjusted the see if the the downward expect bylaws OP to the or OP negative so number to use $XX of the in so can is that JPYXX in And something is similar billion can level is simple we and we offset QX. the probably, there our

probably under now. course, adjusted the by it OP and booked will be So our But be right of that's firm. final decision accounting the made view will

And Panasonic. what so just is we expect this from

we mention that you. to won't be So -- there that surprise so any

that is some something yen Now exchange negative against And positive is JPYX in see now. as better is have exchange is we assumption of on dollar At example. for rate but the the JPYXXX. JPYXXX, weaker fluctuation areas, the for it of TV, to this Panasonic, foreign

level and high. where the So is the volatility just so good is

want the at That why So be that that is I dollars to that as to as for are answer -- of hope we your corporate this and level. euro. conservative we JPYXXX question. euro, have wide now, the in

Masahiro Ono

much. very you Thank

Operator

getting many being time. to scheduled hands the closer see end We but raised, we're

is will person One we Global from more people. Citigroup per question take Markets questions Japan. So from Ezawa-san two

Kota Ezawa

Citigroup. Ezawa from

Just one. one think which me let question,

profits, what that was rather half? forecast? you. your So revision is JPYXX my from results second for forecast come first second the billion the half, the That's you And the Thank made will half for operating revision. Maybe portion question. downward the to or annual downward actual below the

Hirokazu Umeda

question? half-year The put don't announcements in make than to it's answers your from up second took plan, what then lower. That was situation, basis, of assumption. for lower And we terms of so the full-year progress, terms we terms XX% can but were on in together ups estimate that my less is segment-to-segment. segments result That We a billion than there, figure half, for it our with in actual economic of this and JPYXX come downs three of answer. into the effect internal

Kota Ezawa

you. Thank Yes.

Operator

The is from last Securities. question of Mizuho Nakane

Nakane

Thank speaking. This is me. hear can Nakane you Hope you.

Hirokazu Umeda

you Thank very much. Yes.

Nakane

Blue One Connect, of the Yonder billion and the profit so question, revision JPYXX avionics. NPA for so the downward

think this breakdown JPYXX is Just different. next the business And momentum roughly toward speaking, could I you in billion? talk year, the the of about each fiscal

some from them? Blue make on So could ones, two you those aside comments Yonder, remaining

Hirokazu Umeda

Well, than Blue more downward revision. billion Yonder part, JPYXX so

the than XX% them from more business based and So from But Yonder. most difficult automation, process of game Blue comes is our the sentiment solutions. is also

difficulties, as revision. some is We And see this number so included. a also big are a downward those

but As the made. avionics, legacy of the be used are seeing so we big aircraft, for orders, lot partly, are delivery there are semiconductors a orders, But cannot recovery.

manufacture we the So probably second on half, expect. we cannot what But that's expectations. based in supply the improve, our will demand

what higher but -- avionics. for we So is see the profit

add. to As for so already it, nothing Yonder, talked I about Blue

Nakane

very you Thank much.

Operator

Thank you very much.

So with much participation. Thank end. for that the an you Panasonic QX business to results very briefing come your has Group of

Panasonic (PCRFF) 31 Oct 222023 Q2 Earnings call transcript