Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of change	Remarks
Overall
Sales	7,846,216	8,692,672	(9.7)	-
Operating income	43,725	305,254	(85.7)	-
Net income	(772,172)	74,017	-	-
Automotive Systems
Sales	624,878	573,170	9.0	-Operating revenue in the automotive sector increased year-on-year due to a rise in sales of environmentally friendly devices such as batteries for hybrid cars.
Operating income	4,941	22,678	(78.2)	-
Energy
Sales	319,877	315,495	1.4	-The solar-battery/energy business saw improved results mainly in the Japanese domestic market. However, the revenue of lithium batteries decreased.
Operating income	(20,880)	(15,232)	-	-

Contracts

-The Company announced that it will supply lithium-ion batteries for four Ford Motor Co.'s hybrid and plug-in hybrid vehicles. It has supplied nickel-metal hydride batteries to Ford vehicles, starting with the Ford "Escape Hybrid" and to the "Fusion Hybrid" and "Lincoln MKZ Hybrid". The four models to be mounted with Panasonic's lithium-ion batteries are the "Fusion Hybrid Electric", "C-Max Hybrid Electric", "Fusion Energi" and "C-Max Energi". (From an article in the Nikkan Jidosha Shimbun on February 27, 2012)

-The Company announced that it will supply lithium-ion batteries for Toyota Motor Corporation's "Prius Plug-in Hybrid". This will be the first time for the Company to supply its lithium-ion batteries for a mass production plug-in hybrid vehicle. (From a press release on November 29, 2011)

-The Company announced that it has delivered its in-car Display-Audio system compatible with the new MirrorLink smartphone-to-car connectivity standard for the Toyota "iQ" city car being sold by Toyota Motor Europe. This Toyota accessory named "Toyota Touch Life" is being offered as a dealer option for the "iQ" in Europe. The 2-DIN-sized Display-Audio system features an AM/FM radio and a seven-inch WVGA TFT color touchscreen display, which mirrors the user's smartphone screen, showing MirrorLink-enabled applications running on the smartphone. Using the in-dash touchscreen display, the driver can access smartphone applications by the new connectivity technology, such as maps, car navigators and music players. (From a press release on November 28, 2011)

-The Company and Tesla Motors finalized a supply agreement for automotive-grade lithium-ion battery cells. The Company's automotive grade lithium-ion battery cells will be used in Tesla's electric sedan, "Model S". The agreement supplies Tesla with the Company's lithium-ion battery cells to build more than 80,000 vehicles over the next four years. In 2009, the Company and Tesla initially entered into a supply agreement. In 2010, the Company invested 30 million USD in Tesla to deepen the partnership and foster the growth of the electric vehicle industry. The Company supplies cells with the highest energy density using its nickel-type cathode technology. The Company and Tesla together have developed a next-generation battery cell based on this nickel chemistry and optimized specifically for electric vehicle quality and life. (From a press release on October 11, 2011)

-The Company announced that its "nanoe"device, which generates slightly acidic nano-size charged water particles, was selected as standard equipment of the new Toyota "Camry", released on Sept. 5. Automotive Systems Co., a part of Panasonic Corp., will supply the device. The "nanoe" is a nano-size charged particle (ion) covered with water. As it has a six-fold life of a general ion, it can spread across a wider area. As its water volume is over 1,000 times as much as that of air ions, it will moisturize skin and hair mildly. The "nanoe"device will be installed in the new Camry's fully automatic air-conditioner, which will discharge "nanoe" from the air outlet in conjunction with its blower. (From an article in the Nikkan Jidosha Shimbun on September 10, 2011)

Restructuring

-The Company announced that its Board of Directors has decided and signed an agreement to absorb Panasonic Electric Works Co., Ltd. (PEW), a wholly-owned consolidated subsidiary of Panasonic. The merger is expected to take effect on January 1, 2012. Panasonic, as the continuing company, will absorb PEW, which will be dissolved upon the merger. (From a press release on August 31, 2011)

-The Company announced that its Board of Directors has decided and signed an agreement to absorb Panasonic Electronic Devices Co., Ltd. (PED), a wholly-owned consolidated subsidiary of Panasonic, and Panasonic Electronic Devices Japan Co., Ltd. (PEDJ), a wholly-owned subsidiary of PED, respectively. Each merger is expected to take effect on April 1, 2012. Panasonic, as the continuing company, will absorb PED and PEDJ, which will be dissolved upon the merger. (From a press release on August 31, 2011)

Outlook for FY ending Mar. 31, 2013

(in billion Yen)

	FY ending Mar. 31, 2013 (Estimate)	FY ended Mar. 31, 2012 (Result)	Rate of Change (%)	Factors
Overall
Sales	8,100.0	7,846.2	3.2	-Business in Asia and China should generate double-digit sales increases on a local currency basis, while sales in Japan and other markets overseas are predicted to improve revenue overall.
Operating income	260.0	43.7	495.0	-The Company predicts that it will see tremendous improvement and a return to profitability compared to last year’s results, due to the very bold reorganization of its operating structure.
Net income	50.0	(772.2)	-
Automotive Systems
Sales	720.0	624.8	15.2	-The Company foresees double-digit growth due to increased sales of display/audio devices, for which demand is growing.
Operating income	18.0	4.9	267.3	-
Energy
Sales	660.0	319.8	106.4	-Sales of lithium batteries for both automobile and consumer use are predicted to grow, which will generate greater operating income.
Operating income	3.0	(20.8)	-	-

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	520,217	527,798	476,903
Automotive Systems	43,981	-	-
Energy	31,533	-	-
Digital AVC Network	-	252,101	247,069
Sanyo Electric Co., Ltd.	-	61,825	16,779

R&D Structure

<Headquarters>
-The R&D functions are overseen by the Headquarters and are comprised of the Tokyo R&D Center, Advanced Technology Center, Nakao R&D Center and the Production Solutions Headquarters.

-The Company has established Panasonic Research & Development Center India (PRDCI) in Gurgaon, Haryana, India. The new center is Panasonic's first R&D base in India. PRDCI will promote the technologies and their standardization for the Indian market mainly in the areas of energy management and AV products as well as new business development. The company further plans to build full-scale manufacturing facilities called Panasonic Techno Park in Jhajjar, Haryana, in the fiscal year ending March 2013. (From a press release on May 18, 2011)

<Automotive Systems>

Company	Location
Japan
-Yokohama Headquarters Building: R&D Function -Business Development Center -R&D General Headquarters -Global R&D Center -Global Production Solutions Center	Yokohama City, Kanagawa Pref.
-e-Cockpit Development Office	Kadoma City, Osaka
Panasonic ITS Co., Ltd.	Yokohama City, Kanagawa Pref.
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

<Energy>
-The Company's R&D functions, as well as those of Sanyo, conduct R&D activities in the area of energy.

Product Development

Portable car-navigation system pinpoints position
-The Company developed a portable car-navigation system with a function to pinpoint the car's position. This latest system is equipped with a G-Gyro that displays the car's location with a high degree of accuracy even in locations where it is often difficult to receive GPS signals, such as under bridges and overpasses and in areas with many high-rise buildings. By combining the GPS positioning function with the G-Gyro, this system when receiving GPS signals is capable of finding the vehicle's position every 0.2 seconds, and thus it smoothly displays the car's movement along the road. In addition, the system can receive/display the local time only. Also, when this new system is turned on to be used again, the time needed to pinpoint the vehicle's current location is reduced because of the Quick GPS function that uses the previously stored data. This makes it possible for the car's location to be displayed in a shorter amount of time.

High power and anti-surge tip resistor with 2012 size
-The Company has developed and commercialized a high power and anti-surge tip resistor with 2012 size designed to protect automobile engine control units and other inverter units against electrostatic discharge (ESD). For all its small size, the new chip resistor has the highest performance in the industry. The company will begin its commercial production in May with a sample price of 5 yen. Its monthly production target is set of 2 million. The new chip has a rated power of 0.50 watt, which is two times higher than conventional products, by dispersing heat when in use. Its excellent ESD performance contributes to protection of electric circuits as well. (From an article in the Nikkan Jidosha Shimbun on March 24, 2012)

Power choke coil
-The Company has commercialized the "Power choke coil for Automotive," featuring compact size, large current capacity and the lowest DC resistance value in the industry. The new choke coil reduces power loss by lowering DC resistance value by 20 percent compared with conventional products. Power supply circuits to drive actuators in electronic devices like the automatic engine stop/start system are becoming more sophisticated in function and larger in capacity. On-board power choke coils, which store energy, are also required to be more compact, larger in capacity and more durable. The new product is aimed to meet such needs. Panasonic Electronic Devices is commencing its volume production in March at the pace of 5 million pieces a month. Its sample price is 500 yen per piece. (From an article in the Nikkan Jidosha Shimbun on March 9, 2012) 

Silicon carbide (SiC) power transistor
-The Company has developed a silicon carbide (SiC) power transistor integrated with a reflux diode. The introduction of the new power transistor contributes to halving the number of parts used in an inverter power device. The reduction enables downsizing of inverters used in various electric products, including electric vehicles and industrial equipment. In addition, it makes it possible to cut down on the material expenses of the costly SiC substrates by half. An ordinary inverter module consists of a power transistor and an externally installed, reflux diode. Integration of the reflux diode into the power transistor unit slashes the number of inverter parts by about 50 percent, while reducing the size of the inverter module also by 50 percent. (From an article in the Nikkan Jidosha Shimbun on December 22, 2011)

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	294,821	403,778	385,489
Automotive Systems	5,522	-	-
Energy	53,364	-	-
Digital AVC Network	-	153,701	199,956
Sanyo Electric Co., Ltd.	-	87,246	31,174

-The Company 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 area of energy, the Company made capital investments to produce new solar batteries and secondary batteries; as well as to rationalize operations.

Planned Capital Investments

(As of Mar. 31, 2012)

	Planned investment amount (in millions of JPY)	Main purpose
Overall	310,000	-
Automotive Systems	5,000	-New and/or increased production of new onboard multimedia devices, electronic parts, and environmentally friendly devices
Energy	84,000	-New and/or increased production of solar batteries and secondary batteries