Matsushita Electric Industrial Co., Ltd. Panasonic Business Report FY2008

Business Highlights

Financial overview ( in millions of JPY )
- FY2008 FY2007 Rate of
change (%)
Sales 7,765,507 9,068,928 (14) -
72,873 519,481 (86) Operating income decreased compared to what it was a year ago due to a fall in sales, increased oil and materials prices, as well as the impact of intensifying price competition in the global market.
(378,961) 281,877 - -
Digital AVC Networks Division (*)
Sales 3,748,957 4,319,594 (13) Sales dropped year-on-year because of a slowdown in sales of car electronic devices.
3,176 252,239 (99) -
* The Company changed the name of the AVC Networks business to the Digital AVC Networks business in FY2008, which ended in March 2009.

Supply agreements

Panasonic Automotive Systems Co. (PAS) will supply its multi-view camera system for the upcoming Honda Odyssey, scheduled for a launch in October, 2008. The system displays surrounding views on the vehicle's navigation screen to support garage parking, driving in a low-visibility 3-way intersection or passing an upcoming car on narrow roads. This is the first application of this camera system by an automaker. The Company will provide the heart of the system, that is, the camera ECU (electric control unit) and wide-angle CCD cameras. The camera system to be applied to the new Odyssey is composed of four wide-angle CCD cameras, located in the front, rear, right and left of the vehicle, a camera ECU to control them and the nighttime supplemental light on the passenger side made by Stanley Electric Co., Ltd. (From an article in the Nikkan Jidosha Shimbun on Sep. 19, 2008)

The Company announced that its "Display Audio Unit" has been selected by Nissan Motor Co., Ltd. for the automaker's all-new Cube. The Company's in-dash AM/FM/CD player with an integrated 4.3-inch color TFT display panel will be installed in some grades of the all-new Nissan Cube. It interfaces with rearview cameras and offers the rearward view to a driver when a shift lever is moved to the "R" position. The 2-DIN unit has USB connectors and is capable of playing files in iPod and USB memories. (From an article in the Nikkan Jidosha Shimbun on Nov. 22, 2008)

Partnership agreements

The Company and Sanyo Electric Co., Ltd. announced that they have officially concluded the capital and business alliance agreement. Through pursuing synergies between both companies of their accumulated electronics technologies and manufacturing knowledge, they will further strengthen their global competitiveness. In the automotive business, they will focus on high-performance rechargeable batteries, a key component for improved performance of hybrids and electric vehicles. By joint development and marketing of the next-generation environmental technologies as rechargeable batteries, the companies aim for a significant sales increase. (From an article in the Nikkan Jidosha Shimbun on Dec. 22, 2008)

Business outlook for FY2009
- The Digital AVC Networks Division forecasts its sales in FY2009 (ending March 2010) will total 3,373,000 million yen, a drop of 10 percent from FY2008's result; and its operating profit to reach 16,000 million yen, which is higher than last year's figure.


R&D Expenditure ( in millions of JPY )
- FY2008 FY2007 FY2006
Overall 517,913 554,538 578,087
Digital AVC Network 274,708 295,542 286,971

R&D Structure (Automotive Systems Company)

Company Location
Matsushita Electric Industrial Co., Ltd.
-Automotive Electronics Development Center
-Automotive Systems Development Office
Automotive Systems Company
-Business Development Center
-Technology Management Center
Panasonic ITS Co., Ltd. Yokohama
Panasonic Automotive Systems Company of America Georgia, USA
Automotive Systems Europe Panasonic GmbH Langen, Germany
Panasonic Automotive Systems Development Tianjin Co., Ltd. Tianjin, China
Panasonic Automotive Systems Asia Pacific Co., Ltd. Samutprakarn, Thailand

Recent developments

The Company will develop a fail safe mechanism which utilizes a capacitor (high-capacity condenser), aiming to increase the sales of electric drive systems for electric and hybrid vehicles. The capacitor will be used as an emergency power source in case of problems with secondary batteries, etc. It is intended not only to store regenerative energy but also to ensure safety by using the capacitor which can charge and discharge high current instantly. The Panasonic Group is totally engaged with the business of component units of electric drive systems including drive motors and electricity controls as well as forming a joint venture for secondary batteries with Toyota Motor Corporation. It aims to explore the market by delivering full electric drive systems, not limited to a single unit, in the future electric drive related business. (From an article in the Nikkan Jidosha Shimbun on Oct.1, 2008)

The Company has launched development of next-generation ETC terminals to put it to practical application next year or later. Next-generation ETC terminals will have multiple functions such as fee collection at private facilities and safety drive support system at intersections through connection with VICS. According to the Ministry of Land, Infrastructure, Transport and Tourism 70-80% of vehicles on expressways use ETC. The Company intends to widen applications of ETC terminals other than on expressways to expand sales of ETC terminals. (From an article in the Nikkan Jidosha Shimbun on Nov. 26, 2008)

The Company announced that it will support the National Institute for Land and Infrastructure Management's (NILIM's) monitoring project for Dedicated Short Range Communication (DSRC) system, by providing its in-vehicle DSRC equipment in a lump sum in February. DSRC is Japan's next generation electronic toll collection system (ETC). The Company is working on developing advanced DSRC technology, which will link up with a car navigation system to offer a wide range of useful information to the driver. Planned services include displaying road information on car navigation screen and enabling cashless, smooth entering and exiting at parking facilities and shopping centers. (From an article in the Nikkan Jidosha Shimbun on Jan. 29, 2009)

Investment Activities

Capital Expenditure ( in millions of JPY )
- FY2008 FY2007 FY2006
Overall 494,368 449,348 418,334
Digital AVC Network 243,074 209,663 150,700

Reorganizing the production structure

The Company announced that it will reorganize its in-vehicle video equipment business. The Company now produces automotive display monitors and digital terrestrial broadcasting tuners at its Fujisawa Plant (Fujisawa City, Kanagawa Prefecture). The Company will transfer these production lines to its Utsunomiya Plant (Utsunomiya City, Tochigi Prefecture), its supply hub for liquid crystal televisions. With this move, the Company will position the Utsunomiya facility as the "mother plant" of its display device business, aiming for improved productivity, shorter production lead time, reduced inventory levels, which will enhance its business structure. The production lines will be moved in March 2009, together with some 190 employees engaged in monitor and tuner production. (From an article in the Nikkan Jidosha Shimbun on Nov. 25, 2008)

New equipment installation (FY2009) ( in millions of JPY )
- Planned
Main purpose
Overall 350,000 -
Digital AVC Network 198,000 - Setting up production lines to manufacture new plasma display panels and liquid crystal panels
- Increasing production capacity to make plasma display panels and liquid crystal panels