Kusumi Yuki, president of Panasonic Holdings, said at a press conference that the company is ready to sell its TV business if necessary, but no specific plans have been decided yet, the Nikkei Asian Review reported.

"I have some affection for the TV business myself, but the company needs to make strategic adjustments to cope with market changes." Kusumi admitted that he does not think any company will buy the business at this time, but Panasonic will consider various options.

In fact, this is not the first time Panasonic has sold a business. In May 2024, the Panasonic subsidiary plans to exit and sell its high-end projector business for an estimated price of 80 billion yen (about $510 million). The sale is aimed at raising funds for Panasonic Connect's systems business, which is centered on U.S. supply chain software developer Blue Yonder and is an important growth area for Panasonic. Panasonic acquired Blue Yonder in 2021 for more than $7 billion, and proceeds from the sale of the projector business will be used to further acquire other supply chain software developers.

Panasonic's share of the global TV market has halved in recent years, partly due to the impact of Chinese brands TCL and Hisense in terms of TV market share, as well as the competitive pricing of Chinese TV sets. In response, Panasonic has stopped making its own LCD panels for TVS, instead sourcing them from suppliers such as South Korea. Despite the company's acquisition of the Pioneer TV business and the Kuro patent, hailed as the best TV engine in the world, the TV business has struggled to turn around.

As part of the restructuring plan, Panasonic will focus on its home appliances business and launch a new product category by the end of 2025. To this end, the company has set up three operating companies to produce white goods, including refrigerators and washing machines, and plans to expand air conditioning, lighting and other electrical businesses. In addition, Panasonic will merge the black appliances division, which is responsible for entertainment equipment such as TVS and stereos, with the white goods division to improve operational efficiency.

Panasonic also set new financial targets. The company plans to raise its planned adjusted operating profit to more than 300 billion yen in fiscal 2024 an

d more than 750 billion yen by fiscal 2028. At the same time, its return on equity target will rise from around 7% in FY2024 to more than 10% in FY2028. Kusumi said Panasonic will complete the necessary reforms in fiscal 2025 and plans to retire early by that time. In addition, the company will also work to improve the profitability of its key electric vehicle battery business.

For the 2024 fiscal year, Panasonic expects consolidated sales of 8.3 trillion yen, down 2 percent from the previous year. The figure was 300 billion yen lower than the previous forecast due to the sale of an in-vehicle equipment company. However, the group's operating profit and net profit forecasts for FY2024 remain unchanged.

After the restructuring plan was announced, Panasonic shares surged 15%, their biggest intraday gain since February 2014. The market's positive reaction to Panasonic's restructuring plan shows that investors are full of expectations for its future strategic adjustments.

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