Panasonic Corporation Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
Mar. 2011)
FY2009 Rate of
Sales 8,692,672 7,417,980 17.2%
Operating income 305,254 190,453 60.3%
Net income 74,017 (103,465) -
Digital AVC Networks Division
Sales 3,303,974 3,409,501 (3.1%)
Operating income 114,956 87,289 31.7%
Sanyo Electric Co., Ltd.
Sales 1,561,918 404,841 285.8%
Operating income (8,033) (730) -

Partnership Agreements

-The Company and Tesla Motors, a U.S. electric vehicle manufacturer based in California, have signed an agreement on capital collaboration. The two companies have agreed on a 30 million USD(approx. 2.4 billion yen) investment in Tesla by Panasonic and joint sales of Tesla battery packs incorporating Panasonic battery cells. They will deepen cooperative relationships in areas of battery development and powertrain technologies with the aim of accelerating the market expansion of the electric vehicle. Tesla will also supply electric vehicle powertrains, including battery packs, to other automakers. (From an article in the Nikkan Jidosha Shimbun on November. 5, 2010)

Business Plans

-The Company announced its new midterm management plan through the fiscal year ending March 2013. It is targeting to achieve 10 trillion yen in overall sales and 5 percent in operating profit margin in the final year of the business plan. Highlighted in the plan is an energy systems business, which includes energy solutions that combine energy creation, energy storage and energy saving with energy management. It intends to increase sales in this sector from 540 billion yen in fiscal 2009 to 850 billion yen in fiscal 2012, out of which 500 billion yen is expected to be generated from the lithium-ion battery business. The Company aims to maintain the No. 1 position in the global market of lithium-ion batteries by collaboration with Sanyo Electric in cell development and introduction of production lines. (From an article in the Nikkan Jidosha Shimbun on May. 11, 2010)

-The Company is making full-scale inroads into the car air-conditioner business for automakers. Taking advantage of its technologies in household air-conditioning products, the major manufacturer of electric products will develop air-conditioner systems for use in next generation vehicles like electric and hybrid vehicles. Although it used to put its retro-fit air-conditioning units in the aftermarket in the early stages of motorization in 1950s, it has narrowed down the business to stay only a supplier of compressors to other air-conditioner makers. It has decided to re-enter the car air-conditioner business, expecting its technologies in household air conditioners can be used for development of such products as an electric compressor in the next generation vehicles. (From an article in the Nikkan Jidosha Shimbun on August. 24, 2010)

-The Company announced its business plan to increase sales at its car electronics division to 1 trillion yen by fiscal year 2015, up 50 percent from the amount it generated in fiscal year 2009. It aims to achieve this target by expanding sales of car navigation systems and audio equipment especially in China, India and other emerging markets. It will also explore new business opportunities in the area of electronic devices for environmentally friendly vehicles. The Company is poised to continue its sales expansion program, looking to raise the division’s sales further to 1.5 trillion yen by fiscal year 2018. (From an article in the Nikkan Jidosha Shimbun on February 23, 2011)

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

Business Restructuring

-The Company will transfer its automotive nickel-metal-hydride battery business handled at its Shonan Plant (Chigasaki City, Kanagawa Prefecture) to Hunan Corun New Energy Co., Ltd. in China. Assets to be transferred to the Chinese company include all manufacturing facilities as well as sales and R&D departments at the Shonan Plant. In addition, It will grant licenses allowing use of related intellectual property rights to Hunan Corun New Energy. The transfer of the business is a countermeasure aimed at addressing concerns raised by the Ministry of Commerce of the People’s Republic of China with regard to the continued competitive nature of the market after Sanyo Electric Co., Ltd. becomes a subsidiary of Panasonic. The Company will initially transfer the relevant assets to Shonan Energy Co., Ltd., its wholly owned subsidiary. All shares of Shonan Energy will thereafter be transferred to Hunan Corun New Energy. The transactions are scheduled to be completed within three months of January 31, 2011, the date of the agreement. (From an article in the Nikkan Jidosha Shimbun on February 3, 2011)


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall  527,798 476,903 517,913
Digital AVC Network  252,101 247,069 274,708
Sanyo Electric Co., Ltd.  61,825 16,779 -

R&D Structure (Automotive Systems Company)

Company Location
-Automotive Electronics Development Center
-Automotive Systems Development OfficePanasonic Corporation
-Business Development Center
-Technology Management CenterAutomotive Systems Company
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

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall  403,778 385,489 494,368
Digital AVC Network  153,701 199,956 243,074
Sanyo Electric Co., Ltd.  87,246 31,174 -

New Equipment Installation (FY2011)

(in millions of JPY)

Main purpose
Overall 320,000 -
Digital AVC Network 89,000 Expand production of PDPs (plasma display panels) and liquid crystal panels
Sanyo Electric Co., Ltd. 62,500 Launching or streamlining production of new products such as solar batteries, secondary batteries, secondary batteries for hybrid electric vehicles