Summary of Panasonic Group IR Conference Call Company Overview - **Company**: Panasonic Group - **Focus Areas**: Solutions area, housing solutions business, energy storage systems, electrical construction materials, supply chain management software Key Points and Arguments Housing Solutions Business - The housing solutions business is expected to benefit from a decline in new housing starts in Japan, allowing for accelerated non-residential and overseas expansion [1] - The collaboration with YKK AP aims to create a comprehensive building materials manufacturer [1] Solutions Area - The solutions area is characterized by strong businesses with potential to increase earnings power [2] - The competitiveness of the company is linked to contributing to customer profits and operational efficiency [2] Energy Storage Systems for Data Centers - The AI server market is projected to grow from $52 billion in 2023 to $224 billion in 2028, with a CAGR of 34% [6] - Demand for sophisticated power solutions is increasing due to advancements in GPU technology [6] - The company holds approximately 80% market share in energy storage systems for data centers [9] Electrical Construction Materials Business - The company recorded sales of JPY 1.715 trillion and adjusted operating profit of JPY 76.7 billion last fiscal year [17] - The overseas electrical construction materials business accounted for 24% of total sales, with significant growth in the Indian market [17][18] - Domestic sales have grown at an average annual rate of 4.9% from FY2023 to FY2025, while the Indian market grew at 10.6% [18] Supply Chain Management Software (Blue Yonder) - The supply chain management software market is projected to grow at a CAGR of approximately 15% [28] - Blue Yonder is positioned as the largest pure-play supply chain management software provider, serving approximately 3,000 customers [29][30] - The company aims to integrate generative AI into its solutions to enhance cognitive capabilities [31] Financial Targets and Growth Strategy - The company aims to achieve sales of approximately JPY 800 billion by FY2029, with a focus on next-generation products [10][15] - Over 80% of sales through FY2029 are already secured through awards [11] - The company plans to enhance production capacity in Japan and North America to meet increasing demand [12] Investment and Profitability - The company expects to maintain current profit margins while achieving significant sales growth [57] - For Blue Yonder, the focus will shift to go-to-market activities post-development phase, with expectations for margin improvement through increased SaaS sales [58][59] Synergies and Future Outlook - There is an emphasis on creating synergies among different business units, particularly in energy storage and management systems [45] - The company is exploring mergers and acquisitions to strengthen its market position, especially in the Indian market [22] Additional Important Content - The company is addressing increasingly complex power supply demands and enhancing its proposal capabilities through collaboration with external partners [14] - The integration of AI and advanced technologies is seen as crucial for future growth and competitiveness [31][32] - The company is committed to enhancing corporate value through feedback incorporation and strategic management [5]

Energy Storage Systems for Data Centers - The global server market is experiencing a compound annual growth rate (CAGR) of 34% from 2023 to 2028, driven by AI server adoption[15] - Panasonic Energy aims to achieve sales of 800 billion yen by FY2029 through increased demand for existing and next-generation products[28] - Panasonic Energy targets a Return on Invested Capital (ROIC) greater than 20% for its Energy Solutions Business Division by FY2029[46] - Panasonic Energy plans to increase cell production capacity by approximately 3 times by FY2029 compared to FY2026 levels[35] Electrical Construction Materials Business - Panasonic Electric Works aims to increase overseas sales to account for 35% of total sales by FY3/31, including 200 billion yen in India[62] - The Japanese market for electrical equipment is expected to grow at a CAGR of 0.7% from FY3/23 to FY3/31, reaching 2 trillion yen[59] - The Indian market for electrical equipment is projected to grow at a CAGR of 9.1% from FY3/23 to FY3/31, reaching 3.6 trillion yen[59] - Panasonic Electric Works targets a solutions sales ratio of 50% in Japan by FY3/31, up from 36% in FY3/25[88] SCM Software - The SCM software market is projected to reach 66553 million USD by 2029[99] - Blue Yonder's revenue for FYDec'24 was 1360 million USD[102] - Blue Yonder has achieved 150 million USD in cumulative cost savings as of 2025[114]