PCRFY - Panasonic Holdings Corporation (PCRFY) Q4 2024 Earnings Call Transcript
2024-05-10 17:47:08 ET
Panasonic Holdings Corporation (PCRFY)
Q4 2024 Results Conference Call
May 9, 2024 02:30 AM ET
Conference Call Participants
Kenji Yasui - UBS Securities
Yu Okazaki - Nomura Securities
Junya Ayada - JPMorgan Securities
Mikio Hirakawa - BofA Securities
Kota Ezawa - Citi Group Securities
Yasuo Nakane - Mizuho Securities
Presentation
Unidentified Company Representative
I'd like to now present the fiscal 2024 financial results as well as fiscal 2025 financial forecast. This is a summary. Regarding the accounting treatment of the U.S. Inflation Reduction Act or IRA, the amount was recorded on PL as before. In fiscal 2024, both sales and profit increased year-on-year, the same level as the revised forecast announced on April 24, 2024.
Overall sales increased on higher sales of Automotive and Connect as well as currency translation despite the decreased sales in lifestyle industry and energy. Adjusted operating profit or AOP increased overall with higher profit in Lifestyle, Automotive and Connect as well as IRA tax credit despite the lower profit in the industry. However, AOP excluding IRA tax and credit, decreased. Net profit increased due mainly to onetime gains with the liquidation of Panasonic liquid crystal display in Q1 fiscal '24.
Operating cash flow significantly increased year-on-year due mainly to reduced inventories. Annual dividend is determined at JPY 35, up JPY 5 per share year-on-year. For the fiscal '25 full year forecast, overall sales and AOP are expected to increase year-on-year. Net profit is expected to decrease due to the impact of onetime gains recorded in fiscal '24. Furthermore, a loss of JPY 50 billion is factored into other income and loss resulting from the share transfer of Panasonic Automotive System or PAS.
After this transaction, PAS will become a company under the equity method. By segment, lower sales and higher profit are expected in Automotive and Energy. Both sales and profit are expected to increase in Lifestyle, Connect and Industry. Now let me explain the impact of the U.S. IRA tax credit on our financial results and forecast, the accounting treatment and items remain unchanged from Q1. The amount recorded for fiscal '24 results and fiscal '25 forecast are shown in the middle.
Next is the details of consolidated financial results for fiscal '24. For the consolidated financial results, as mentioned, both sales and profit increased. On the right, a comparison with the forecast announced on February 2 is shown. Each multi-step profit, EPS, ROE and EBITDA were below this forecast. This is the results by segment, along with the comparison with the forecast announced on February 2.
Adjusted OP was below February 2 forecast due to the recording of the expenses related to the past manufacturing process issues in energy segments in vehicle business....
Panasonic Holdings Corporation (PCRFY) Q4 2024 Earnings Call Transcript