Matsushita Electric Industrial Co., Ltd. Panasonic Business Report FY2008
Business Highlights
Financial overview | ( in millions of JPY ) |
- | FY2008 | FY2007 | Rate of change (%) |
Factors |
Overall | ||||
Sales | 7,765,507 | 9,068,928 | (14) | - |
Operating income |
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. |
Net income |
(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. |
Operating income |
3,176 | 252,239 | (99) | - |
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
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 |
Japan | |
Matsushita Electric Industrial Co., Ltd. -Automotive Electronics Development Center -Automotive Systems Development Office |
- |
Automotive Systems Company -Business Development Center -Technology Management Center |
Yokohama |
Panasonic ITS Co., Ltd. | Yokohama |
Overseas | |
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 investment amount |
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 |