Transforming the Business Model from a Software-Led Foundation and Strengthening the Silicon Valley Operations

「During the interim consolidated accounting period, Blue Yonder Holding, Inc., a subsidiary of Panasonic Connect Co., Ltd., announced in May a group of planning-oriented SaaS solutions, called Cognitive Solutions, incorporating generative AI-based agents in response to changes in the digital environments used by customers.」

「The group determined in May 2022 and announced that it would begin preparations for a public listing, judging that a listing was the optimal way to accelerate global growth by harnessing the power of the capital markets, taking into account the characteristics and market environment of the supply-chain management business operated by Panasonic Connect Co., Ltd.」

「Blue Yonder Holding, Inc. (hereinafter, “Blue Yonder”), a subsidiary of the company’s consolidated subsidiary Panasonic Connect Co., Ltd., acquired all shares of U.S.-based One Network Enterprises, Inc. (hereinafter, “One Network”) on 1 August 2024 and obtained control of One Network.」

「Blue Yonder resolved to enter into an agreement to acquire U.S.-based One Network Enterprises, Inc. for approximately US$839 million and entered into the agreement on the same date.」

「(c) Connect\nRevenue was ¥848.9 billion, up 6% year on year. Despite lower sales in process automation, revenue increased due to higher sales of avionics, frontline solutions and Blue Yonder.\nOperating profit increased to ¥24.7 billion, up 812% year on year, despite losses from lower process automation sales, due mainly to gains from higher sales of avionics.」

「Revenue was ¥552.1 billion, up 7% year on year. Despite lower sales in process automation, revenue increased due to higher sales of avionics, rugged mobile devices and notebook computers, and Blue Yonder.\nOperating profit increased to ¥16.2 billion from an operating loss of ¥10.4 billion in the same period of the previous year, despite losses from lower process automation sales, due to gains from higher sales of avionics and other products and improved profitability in Mobile Solutions.」

「Revenue was ¥263.6 billion, up 8% year on year. Despite lower sales in process automation, revenue increased due to higher sales of avionics, rugged mobile devices and notebook computers, as well as growth in Blue Yonder’s SaaS sales. Operating profit increased to ¥6.9 billion from an operating loss of ¥9.5 billion in the same period of the previous year, despite losses from lower process automation sales, due to gains from higher sales of avionics and other products.」

「Although Blue Yonder was affected by delayed investment amid economic uncertainty in Europe and the United States, recurring-revenue sales grew steadily as SaaS orders progressed, resulting in higher revenue.」

「By combining the company’s long-cultivated manufacturing expertise, edge devices, IoT and sensing technologies with Blue Yonder’s software platform, whose strengths include AI and ML, the two companies will create new value and accelerate the Autonomous Supply Chain™. They will address customers’ management challenges while seeking to protect the global environment and realize a sustainable society through energy savings and the efficient use of resources.」

「The company will combine its long-cultivated manufacturing expertise, edge devices, IoT and sensing technologies with Blue Yonder’s software platform, whose strengths include AI and ML, to create new value and accelerate the Autonomous Supply Chain™ with both companies. In addition to addressing customers’ management challenges, the company will accelerate its own transformation by strengthening operations in its supply chain, including improving cost competitiveness, and adopting and integrating an agile corporate culture.」

「Through this transaction, the company will acquire from Blue Yonder, a specialist supply-chain software company, the latest AI and ML technologies and expertise in supply-chain packaged software and recurring-revenue businesses, further accelerating the evolution of its frontline process business.」

「The company strengthened its development structure in Silicon Valley, United States, to transform its business model around software and develop new products and services from a user-first perspective. To this end, it invited Matsuoka Yoko (松岡 陽子), who has world-class technological expertise and experience creating unprecedented products and services and was formerly a Google vice president and CTO of Nest, to serve as a fellow.」