Panasonic Corporation Business Report FY ended Mar. 2020
Financial Overview |
(US GAAP, in millions of JPY) |
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | Rate of change (%) |
Remarks | |
| Overall | ||||
| Sales | 7,490,601 | 8,002,733 | (6.4) | 1) |
| Operating income | 293,751 | 411,498 | (28.6) | 2) |
| Income before income taxes | 291,050 | 416,456 | (30.1) | - |
| Current net income attributable to the Company's stockholders | 225,707 | 284,149 | (20.6) | - |
| Automotive | ||||
| Sales | 1,482,379 | 1,523,176 | (2.7) | 3) |
| Operating income | (46,637) | (12,117) | - | 4) |
Factors
1) Company-wide Sales
-Domestic sales declined due to the impact of the coronavirus (COVID-19) despite an increase in sales of in-vehicle infotainment systems. Overseas sales declined due to factors such as sluggish sales of in-vehicle devices, foreign exchange losses, and the spread of the coronavirus, despite significant growth in automotive batteries.
2) Company-wide Operating Profit
-Expenses incurred for initiatives to streamline operations at the general-battery plant in North America, and the impact from the coronavirus pandemic, contributed to the operating loss.
3) Automotive Business Sales
-Sales of growth products at the automotive device business, such as cockpit systems, rose due to the increasing need for automotive connectiveness and computerization. Nevertheless, sales decreased due to the worsening Chinese automotive market, inappropriate timing of transitioning the product cycle, and the impact from the coronavirus pandemic. Sales at the automotive battery business significantly increased due to the benefit of investing to increase production in line with greater demand for square lithium-ion batteries for electric-powered vehicles, cylindrical lithium-ion batteries, and overall production in line with greater production by electric-vehicle OEMs in the USA. The impact of the coronavirus pandemic became apparent around the world in terms of lower demand, with the suspension of operations at customers’ plants worldwide. In terms of the supply chain, lockdowns in China and difficulties in procuring parts greatly impacted production and operations that became constrained.
4) Automotive Business Operating Profit
-R&D expenses at the automotive-device business increased for electric chargers that had already been ordered in Europe, which are relatively difficult to develop. In addition, the market situation worsened for Ficosa International, for which the business posted a goodwill impairment. Also, operating profit at the automotive battery business fell because of increased fixed-expenses for cased lithium-ion batteries, which resulted from launching production of large-capacity cells at the Himeji Plant in Japan, although sales of automotive batteries increased.
Outlook for the Fiscal Year Ending in March 2021
-The Company is unable to make a forecast due to the ongoing coronavirus pandemic.
New Company
Established Prime Planet Energy & Solutions, Inc.
-Shareholding: Toyota: 51%, Panasonic: 49%
-Employees: 5,100
-The new company, which launched operations in April 2020, has two headquarters, one in Tokyo and one in western Japan. It is engaged in the development, manufacture, and sale of automotive square lithium-ion batteries, all-solid automotive batteries, and other next-generation automotive batteries. The Company’s aim is to deliver products to Toyota and other OEMs through Panasonic.
R&D Expenses
-In the fiscal year that ended in March 2020, the Company spent a total of JPY 475,005 million, investing JPY 134,300 million in the automotive business.
Recent R&D Activities
1) Company-wide (Cross-functional ) Initiatives
Launched self-driving ride-sharing program within the headquarters premises
-Based on deep learning practices, the Company developed precise, human-recognition technology and remote monitoring and control technology based on low-latency wireless communication technology. As a result, the company was able to launch a self-driving ride-sharing program for employees within the headquarters’ premises, by integrating all of these technologies. Based on this, numerous employees are able to come and go by riding self-driving vehicles that are all running at the same time in a real-life environment.
2) Automotive Business
Next-generation electronic rear-view mirror for Nissan
-Being installed on vehicles launched in the spring of 2020, this mirror offers a higher degree of pixel density (up to 8,000 more). Also, it also enhances visibility at night based on high dynamic-range (HDR) that combines images with varying amounts of light. The pixel density of existing mirrors is 100ppi, but the density of this one is 162ppi, an increase of 8,000. The HDR, which corrects blacked-out spots in images having variances in light and dark areas, increases the number of synthesized images. Current products correct by processing three photos per frame of images with varying amounts of lightness and darkness; however, this improved, next-generation product has four images, making the images clearer. By operating a lever, drivers can switch between the electronic mirror and the standard optical mirror.
Delivering Compact HUDs to Redesigned Nissan Skyline
-This compact HUD is the Pro-Pilot 2.0, one of the intelligent interfaces being factory-installed. This driver-assist system, the first in the world, makes selecting optimum highway routings possible. The system gives drivers important information such as suggestions for the timing of lane changes, displaying it near the center of the driver’s field of vision. As a result, displaying it the field of vision reduces the workload on the driver and creates a pleasant bond between the driver and the system. The systems is equipped with a freeform mirror and thin picture generation unit (PGU) developed by using optical technology that the Company has created through developing digital cameras.
Developed Large-screen Augmented Reality Head Up Display (AR-HUD)
-This system uses optical technology, anti-shake photographic technology, and precision-molding technology that the Company has created through developing AV equipment such as digital cameras, monitor cameras, projectors, TVs, etc. The system includes technology on high-quality, large-screen displays that display a distance with a feeling of depth between 7 to 41 meters, and high-precision, superimposed-display technology that reduces the misalignment of actual space and displayed images due to vehicle vibration. As a result, the system gives an easier-to-see, three-dimensional display of driver-assist information such as alerts about lanes and road-signs. In addition, it suggests driving routes in the screen that the driver sees through the windshield. Based on this, the systems helps with navigation by reducing the driver’s need to make various eye movements. This technology is equipped on Toyota’s LQ concept car.
Developed Driverless Valet-parking System
-The Company developed a driverless, self-parking system (SAE level 4) that can accurately park cars automatically in limited spaces, eliminating the need to install expensive sensors on cars and in parking lots. This system enables the driver to get out of the car at the parking area entrance. Then it searches for a parking space and accurately parks the car in tight spaces up to a tolerance of 20cm between cars in the spaces. This is possible because the system uses numerous cameras and sonar and radar equipment installed on the vehicle, as well as simple, two-dimensional maps showing the parking space and stop-lines. Based on the use of deep-learning technology, the onboard cameras and monitoring cameras can spot nearby persons in and around the parking areas, as well as persons who suddenly appear nearby the moving car, and apply the high-performance emergency brakes to stop the car.
Developed 79 Gigahertz Three-dimensional Millimeter Wave Radar
-Millimeter-wave radar that is used to apply brakes to eliminate injuries during collisions is far superior to cameras that rely on optics-based sensors. In addition, this radar performs exceptionally well in inclement weather. However, millimeter-wave radar’s shortcoming was its inability to identify shapes of objects. This latest developed radar, however, can identify objects, so the Company is waiting to see the reaction of OEMs before deciding whether to commercialize it.
Capital Investments
-During the fiscal year that ended in March 2020, the Company spent JPY 268.9 billion , which is JPY 31.6 billion less that the JPY 300.5 billion it spend in the previous fiscal year. In the automotive business alone, it spent JPY 103.5 billion, or 4.8% less than in the previous fiscal year. The money was spent to increase production of auxiliary batteries and produce and increase production of new, in-vehicle infotainment products. Due to the coronavirus pandemic, the Company has not released any budget for capital investments in the fiscal year ending in March 2021.