Panasonic 2003 Annual Report Download - page 37

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Matsushita Electric Industrial 2003 35
during which the Company incurred various charges
related to employment and business restructuring.
Net Income (Loss)
Net income (loss) for fiscal 2003 showed a substantial
improvement from a loss of ¥427.8 billion in the pre-
vious year, to a loss of ¥19.5 billion ($162 million),
representing a rebound of ¥408.3 billion. While the
improvement in income before income taxes was basi-
cally mirrored, a net loss was recorded, due to such
factors as equity losses caused by aggravated earnings
results of associated companies and losses related to
adjustments of deferred tax assets necessitated by the
introduction of a pro-forma standard corporate taxa-
tion system in Japan.
As a result, net loss per share of common stock was
¥8.70 ($0.07), compared with a net loss per share of
¥206.09 in the previous fiscal year.
R&D Expenditures
R&D expenditures for fiscal 2003 decreased 3%, to
¥551.0 billion ($4,592 million). During the year,
Matsushita established a structure to facilitate central-
ized R&D management for respective business areas
called Strategic Products Platforms, and concentrated
on developing products that would contribute to a
V-shaped recovery in business performance. In
addition, an R&D Business Plan was implemented to
further increase R&D efficiency and strengthen tech-
nology management. These efforts were behind
Matsushita’s development of proprietary black-box
technologies, which, through sales of V-products,
worked to strengthen product competitiveness. Overseas,
the Company established its second R&D base in
China in Suzhou City in a move to strengthen its
global R&D infrastructure aimed at accelerating local-
based product development.
Earnings
Thousands of
Millions of yen U.S. dollars
2003 2002 2001 2000 1999 2003
Operating profit (loss)............................. ¥126,571 ¥(198,998) ¥194,619 ¥169,101 ¥192,670 $1,054,758
Income (loss) before income taxes........... 68,916 (537,779) 105,497 247,648 193,822 574,300
Net income (loss) ................................... (19,453) (427,779) 41,503 106,191 20,385 (162,108)
R&D expenditures ................................. 551,019 566,567 545,216 526,896 501,566 4,591,825
Notes: 1. In order to be consistent with financial reporting practices generally accepted in Japan, operating profit (loss) is presented as net sales less
cost of sales and selling, general and administrative expenses. Under accounting principles generally accepted in the United States of
America, certain additional charges (such as impairment and restructuring charges) are included as part of operating profit (loss) in the con-
solidated statements of operations. See the consolidated statements of operations on pages 37 and 40, and Notes 9 and 17 to the consolidated
financial statements.
2. As described in Note 3 of the notes to the consolidated financial statements, the Company began consolidating certain previously
unconsolidated subsidiaries during the year ended March 31, 2003 and has restated prior year amounts.
600
450
300
150
01999 2000 2001 2002 2003
R&D Expenditures
Billions of yen