AVC Networks Company
Business Strategy
September 17, 2014
Panasonic Corporation
AVC Networks Company

President Yoshiyuki Miyabe
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “fiscal year 2015” or “FY15” refers to the year ending March 31, 2015.

Contents

1. Vision of AVC Networks Company
2. Initiatives to Expand Businesses

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

Contents

1. Vision of AVC Networks Company
2. Initiatives to Expand Businesses

Towards FY2019

3 / 12(yen: trillions)

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Vision of AVC Networks Company4 / 12

■ Directly offer business solutions to BtoB customers, integrating AV and ICT technology- contribute to smart society in cloud era ■ FY19 consolidated
company sales target in BtoB Solutions: 2.5 trillion yen『ＡＶとＩＣＴの融合で顧客直結の企業・法人向けSolutionを提供』(yen: billions)
Out of 2.5 trillion～yen,sales target in AVC: 1.5 trillion yen
クラウド時代におけるスマート社会の実現に貢献～

1,500.0
1,152.5

Improve level of solutions technology
with competitive products

1,140.0
Consolidated
company:
2.5 tri. yen

System Solutions

AVC:
1.5 tri. yen

Product Solutions

Box (Hardware)

FY14*

FY15(e)FY19(e)*Note: FY14 is reclassified to conform to presentation as of July 1, 2014

Contents

1. Vision of AVC Networks Company
2. Initiatives to Expand Businesses

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

Four Core Businesses

6 / 12

BtoB customers
Sales/
SI*1

Japan & Overseas system engineering / sales companies
Mobility
Business

Visual & Imaging
Business【Business Divisions】
・Imaging Network
・Security Systems
・Visual Systems

CoreBiz.

【Business Divisions】
・IT Products
・Storage

Sales*2304.0 bil. yen

216.0 bil. yen

Proportion

27％

19％

Communication
Business

Vertical Solution
Business【Business Divisions】【Business Divisions】
・Office Products
・Infrastructure Systems
・Communication Products ・Avionics

145.0 bil. yen

305.0 bil. yen

13％27％*Note 1: SI stands for System Integration*Note 2: FY15 Business plan based on organization as of July 1st, 2014)

Strengthen Core Businesses (Competitive Hardware)

7 / 12■ Expand solution business with our competitive hardware
Visual & Imaging
Business
Differentiation

Competitive
ProductsandPositionin market*

PictureProcessing

OpticalTechnology

Mobility
Business
Tough

Slim & light

High luminance Projector

Tough PC, Tough Tablet

Global No.1

Global No.1

Broadcast/Industry CamcorderGlobal No.2Security system
Global No.4
Japan No.1

Industrial SD memory
Global No.1
Payment terminal,
IC Card R/WJapan No.1

Communication
Business
WirelessCommunication

SoundProcessing

Fixed Phone
Global No.1
ＰＢＸ
Global No.4
Door phone
Japan No.1

Vertical Solution
Business
Customize

Operation
Supporting

In-Flight Entertainment
Global No.1
Disaster prevention
wireless system

Japan No.1
ETC system
Japan No.2

*Note: FY14(Tough PC/Tough Tablet is 2013) market share based on amount (except for PBX), number of extension (PBX). Panasonic estimates, including third-party sources.

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Expand Solution Business8 / 12■ Create new business with ‘ICT-oriented Business Front’*
Business Front
Apply ‘hardware’
to ‘people’ and ‘environment’

Middle-end

Back-end‘ICT-oriented Business Front’

Apply ‘environment’to ‘hardware’*Note: ICT stands for Information and Communication Technology

Target Area in Solution Business9 / 12■ Offer our value in ‘Middle-end’ and ‘Business Front’Customer
Working Area

Back-end

Middle-end

Business Front

Existing Sler Company A, Company B, Company C, etc.

Main System(Services)

Commercialapplication(Software)

Offer valuewith specialized systems(Target No.1 market sharein specialized systems)

Terminals(Hardware)

Offer valuein ‘End to End’(Target No.1 market sharein initiative industry)

Competitive hardware support solution business

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Examples of Solution in ‘Business Front’
In-Flight Entertainment

Repair & Maintenance Global Communication Service

10 / 12

Contents Service(ex. Weather info.)

ForAvionics
Panasonic Weather Service(Acquired ex-AirDat)

In-Car Camera

Imaging
Area

In-Car Recorder

patrol car
Freight Management
SystemEvidence pictureManagement System

Picture monitoring
SystemWearableCamera
Security Camera ＊DistributionManagementSystemDriver's terminal

PoliceTerminal Supporting
Payment
Display goods
by electronic money

Mobility
Area(Acquired KOUEI SYSTEM)

Network

Distribution warehouse*Note: Sales for USA, EU and China (without for Japan)

Sales Target by Region

11 / 12■ Expand business, improving our value for customers by region
Sales growth*

Sales target toward FY19

(FY14 to FY19)

Expand business(yen: billions)+50.0 1,500.0+70.0 Cross

Japan+90.0 bil. yen

・Introduce next generation products
and services

Americas/EU+140.0 bil. yen

・Develop solution business andstrengthen alliance

Strategicregions+70.0 bil. yen

・Cooperate with local partners andcustomers+140.0 Strategic region
Americas+90.0 EU

regions

1,152.5
JapanFY14 *FY19(e)*Note: FY14 is reclassified to conform to the presentation as of July 1, 2014, including Panasonic estimates

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Accelerate Growth

12 / 12■ Plan to invest 100 billion yen including M&A in total by FY19
Initiatives

Actions to take

■ Strengthen and establish engineering forces in
global 8 regions
Functionenhancement
Newlyestablishment

・ Utilize engineering forces as corporate-wide platform

Enhancebusiness platform

EuropeRussiaChinaUSA

TaiwanIndia
Asia

Expandsolution market

JapanBrazil■ Obtain knowledge and skill in main systems forspecific industries
・Expand main systems and products
・Acquire knowledge, cooperate with partners and do by ourselves

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Disclaimer Regarding Forward-Looking Statements
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