Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of change	Remarks
Overall
Sales	7,303,045	7,846,216	(6.9)	-
Operating income	160,936	43,725	268.1	-
Net income	(754,250)	(772,172)	-	-
Automotive Systems
Sales	769,034	624,878	23.1	-
Operating income	16,606	4,941	236.1	-
Energy
Sales	323,311	319,877	1.1	-
Operating income	8,316	(20,880)	-	-

Automotive Business

-In April 2013, the Company reorganized its operations, merging the following companies into its Automotive & Industrial Systems Company (AIS).

• Automotive Systems Company: car navigation systems, audio products, electric wiring products
• Industrial Devices Company: semi-conductors, electronic products
• Energy Company: storage batteries
• Manufacturing Solution Company: mounting and welding robots

-In order to make the best use of its technological expertise on AV devices in the automotive sector, the Company set up an automotive development center on the premises of AV Networks Company that deals in AV devices.

- On May 30, Panasonic Automotive & Industrial Systems Company (AIS), based in Kadoma, Osaka Prefecture, Japan, announced its midterm business plan covering from FY2013 through FY2015. The company will focus on three business areas: in-vehicle equipment, industrial applications, and Information and Communication Technology (ICT), aiming to improve profitability. At the same time, AIS is going to carry out structural reforms of its deficit-ridden divisions such as semiconductors and optical pickups, seeking to achieve a turnaround by fiscal year ending March 2015. The Panasonic Group is aiming to increase sales at its in-vehicle equipment division to 2 trillion yen by FY2018, which is double the result in FY2012. In order to accomplish this goal, the Company is poised to create new business areas by enhancing interactions within the Group. (From an article in the Nikkan Jidosha Shimbun on Jun 1, 2013)

Major Contracts

- Panasonic Automotive & Industrial Systems Company (AIS) announced that it will mark the shipment of the 100 millionth lithium-ion battery cell for the Tesla Model S electric vehicle in June. Tesla Motors released the Model S in 2012, and sales are expected to exceed more than 20,000 units this year. The 18650 size cylindrical lithium-ion battery cell with the highest energy density and performance in the industry is optimized for use in electric vehicles. Having been developing electric vehicle battery cells together with Tesla, the Company also supplies its battery cells for the Roadster as well. By accelerating the development and commercialization of high-performance batteries, the company is poised to expand its green-car battery business in the global market. (From an article in the Nikkan Jidosha Shimbun on Jun 13, 2013)

- The Company announced that it will supply its nickel-metal hydride (Ni-MH) battery systems for Fuji Heavy Industries' Subaru XV Crosstrek Hybrid for sales in the U.S. market. The new hybrid model will be unveiled at the New York International Auto Show taking place from March 27 through April 7, and is scheduled to be released in the fall of 2013. (From an article in the Nikkan Jidosha Shimbun on Apr. 5, 2013)

- The Company announced on September 24 that its lithium-ion batteries have been chosen for Toyota Motor Corporation's "eQ" electric car, which is to go on sale in Japan and the U.S. in limited numbers at the end of December. The Company has already been supplying lithium-ion batteries for Toyota's hybrid and plug-in hybrid vehicles. New adoption by Toyota for its electric car culminates supply of the Company's lithium-ion batteries for a full line of Toyota's electrified vehicles. Toyota will install 277.5 volt, 12 kWh lithium-ion batteries on the "eQ." With these batteries and a 47-kilowatt motor, the new EV has achieved the world's highest efficiency in power consumption of 104Wh/km. (From an article in the Nikkan Jidosha Shimbun on Sep. 26, 2012)

Awards

-Panasonic Factory Solutions (an indirect purchasing business) won a Supplier Award from the Bosch Group. (From a press release on July 4, 2013)

Outlook for FY ending Mar. 31, 2014

(in billion of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ended Mar. 31, 2013 (Actual Results)	Rate of Change (%)	Factors
Overall
Sales	7,200.0	7,303.0	(1.4)	-
Operating income	250.0	160.9	55.3	-
Net income	50.0	(754.2)	-
Automotive & Industrial Systems
Sales	2,540.0	2,518.0	0.9	-
Operating income	76.0	29.5	157.6	-

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	502,200	520,217	527,798
Automotive Systems	53,400	43,981	-
Energy	27,700	31,533	-
Digital AVC Network	124,500	-	252,101

R&D Structure

<Automotive Systems>

Company	Location
Automotive Development Center	Yokohama City, Kanagawa Pref.
e-Cockpit Development Office	Kadoma City, Osaka
Product Development Center	Yokohama City, Kanagawa Pref.
Global Fundamental Technology Development Center	Yokohama City, Kanagawa Pref.
Global Production Innovation Center	Matsumoto City, Nagano Pref.
Panasonic Automotive Systems Company of America (PASA)	Georgia, USA
Panasonic Automotive Systems Europe GmbH (PASE)	Langen, Germany
Panasonic Automotive Systems Development Tianjin Co., Ltd.	Tianjin, China
Panasonic Automotive Systems Asia Pacific (Thailand) Co., Ltd. (PASAP)	Samutprakarn, Thailand

Product Development

<Automotive Systems>
New charging system for EVs
- Panasonic Automotive Systems (PAS) (headquarters: Yokohama, Kanagawa Prefecture) announced on December 25 that it has developed a new charging system for EVs through a joint project with Nissan Motor. The company has already started supplying this technology for the new Nissan Leaf EV, which underwent minor design changes in November. By leveraging the Panasonic Group's expertise in developing environmentally friendly home electronics and electric devices, PAS was able to develop and commercialize the new charging solution. With an aim of winning new business in the area of EVs and other next generation vehicles, the company will continue its initiatives to develop advanced new products. (From an article in the Nikkan Jidosha Shimbun on Dec. 26, 2012)   

Communications Service Between Onboard Devices and Smart Phones
-The Company developed a system that will enable MirrorLink to be launched in Japan. MirrorLink, which is a system that started in Europe, enables onboard devices and smart phones to communicate with each other. Displays and audio equipment that are being delivered to OEMS, connect through Bluetooth. However, MirrorLink, which is device-to-device communications service, enables anything being displayed on smart-phone screens to also be displayed on onboard vehicle displays, making it possible to operate smart-phone apps by operating the onboard device.

12V Energy Recovery System for Vehicles with Idling Stop
<Energy>
- The Energy Company (headquarters: Moriguchi, Osaka Prefecture) in the Panasonic Group announced on February 8 that it has developed a 12V energy recovery system for automobiles. The technology is especially designed for use in vehicles equipped with an automatic engine stop-start system using nickel metal hydride (Ni-MH) batteries. Installation of the new energy recovery system will allow the vehicle to store the energy generated during braking into the batteries, and supply the stored energy to its electric components and drive assist motors as a power source. The technology also contributes to improving fuel economy and extending the service life of the main lead-acid battery. (From an article in the Nikkan Jidosha Shimbun on Feb. 9, 2013)

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	310,866	294,821	403,778
Automotive Systems	8,605	5,522	-
Energy	64,643	53,364	-
Digital AVC Network	56,491	-	153,701

-Automotive Systems invested to either produce and/or increase production of the following items in the automotive systems sector: onboard multimedia devices, electric parts, and environmentally friendly products.
-In the energy sector, the Company launched and/or increased production of new products such as solar-powered batteries and secondary batteries.

Planned Capital Investments

(As of Mar. 31, 2013)

	Planned investment amount (in millions of JPY)	Main purpose
Overall	205,000	-
Automotive & Industrial Systems	83,000	-To launch and/or increase production of new products such as automotive multi-media devices, electronic parts, and secondary batteries.