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Annual Report 2006
For the year ended March 31, 2006

Table of contents

  • Page 1
    Annual Report 2006 For the year ended March 31, 2006

  • Page 2
    ... Company manufactures and sells a wide range of products, from audiovisual (AV) and information and communications equipment, to home appliances and components and devices throughout the world under the Panasonic brand and global brand slogan "Panasonic ideas for life." In June 2006, Senior Managing...

  • Page 3
    Financial Highlights Matsushita Electric Industrial Co., Ltd. and Subsidiaries Years ended March 31, 2006 and 2005 Millions of yen, except per share information Percentage of previous year Millions of U.S. dollars, except per share information 2006 2005 2006/2005 2006 Net sales ...Â¥8,894,...

  • Page 4
    ... (Forced Flue)-type kerosene fan heaters which were manufactured and sold in Japan between 1985 and 1992. In addition to company-wide recall efforts, product inspections and repairs of affected models, Matsushita, through the Corporate FF Customer Support & Management Division, is adopting a variety...

  • Page 5
    ... on accountability for the benefit of our shareholders, investors, customers and all other stakeholders, and will continue efforts to further increase corporate value. Thank you for your continued support. June 2006 Kunio Nakamura Chairman Fumio Ohtsubo President Matsushita Electric Industrial...

  • Page 6
    ... Results Fiscal 2006 was crucial to achieving the goals of the Leap Ahead 21 plan and securing sustainable growth. Accelerating growth strategies while reinforcing management structures in each business domain company, Matsushita made progress in four major areas. Matsushita Electric Industrial Co...

  • Page 7
    ... shifted from analog to digital, plasma TVs, for which global demand is rapidly expanding, and digital cameras recorded significant sales gains compared to the previous year. In home appliances, the introduction of innovative products, such as industry-first air conditioners that require no cleaning...

  • Page 8
    ... companies in Japan. We will also identify strategic products and sales channels for each region and country, and effectively allocate management resources in order to boost sales. In addition to markets in Europe and the United States, Matsushita views the growing BRICs* markets as a key to success...

  • Page 9
    ... Product Safety Administration Center was set up under the Corporate Quality Administration Division, while a new department was established at each business domain company to handle safety and service of products used over an extended period. In addition, efforts are being made to notify customers...

  • Page 10
    ... steady and continuous growth of return to shareholders, while at the same time taking into consideration various factors including mid-term business performance, capital expenditure requirements and the Company's financial condition. As for share repurchases, by using surplus cash flows to acquire...

  • Page 11
    ... solutions for comfortable living to customers all over the world by actively carrying out R&D and business expansion. Matsushita therefore places top priority on realizing the full potential of plasma TVs, which are the core product in the Company's home networks business. Matsushita Electric...

  • Page 12
    10 Matsushita Electric Industrial Co., Ltd. 2006

  • Page 13
    ... security Home network cameras Mobile phones Internet TVs Video phones Air conditioners Multipurpose distribution panelboard Facsimile machines "T navi" services Home printers Home servers Content services Email Car navigation systems Digital cameras SD Memory Cards PCs Web DVD recorders IP...

  • Page 14
    ... Three Key Technologies for High Picture Quality (PEAKS*) PEAKS Driver Display processor IC that ensures optimal image expression according to the panel's specific characteristics PEAKS Panel Display panel that uses a staged, ribbed configuration to achieve increased brightness. Integrated...

  • Page 15
    ...-how in manufacturing and sales, Matsushita will introduce appealing new products to the market in a timely manner and at affordable prices in order to meet ever-diversified customer needs. departments to achieve technological advances in such areas as brightness and color reproduction. The Company...

  • Page 16
    ... plasma TVs Panasonic AVC Networks Company America Assembly of plasma TVs Matsushita Plasma Display Panel Company Ltd. Integrated production, from panels to plasma TVs â- No. 1 plant (Ibaraki) â- No. 2 plant (Ibaraki) â- No. 3 plant (Amagasaki) Europe China North America Japan [Fiscal 2006...

  • Page 17
    ... Company aims to maximize sales and earnings by rapidly achieving high market shares. In fiscal 2006, Matsushita boasted the No.1 global market share for plasma TVs of 35% by implementing the first simultaneous product introduction for the Company's TV business in Japan, the United States and Europe...

  • Page 18
    ...., Ltd. Panasonic Electronic Devices Co., Ltd. Motor Company Others Main Products Plasma, LCD and CRT TVs, DVD recorders/players, VCRs, camcorders, digital cameras, compact disc (CD), Mini Disc (MD) and Secure Digital (SD) players, other personal and home audio equipment, SD Memory Cards and other...

  • Page 19
    ... Corporation Victor Company of Japan, Ltd. Panasonic Factory Solutions Co., Ltd. Matsushita Welding Systems Co., Ltd. Others Main Products Main Products Main Products Lighting fixtures, wiring devices, distribution panelboards, personal-care products, health enhancing products, water-related...

  • Page 20
    ... Review by Product Segment AVC NETWORKS Incorporating Matsushita's cutting-edge technologies, AVC Networks provides products, software, services and solutions that contribute to the realization of a ubiquitous networking society. In fiscal 2006, sales of video and audio equipment such as plasma TVs...

  • Page 21
    ...technologies to expand development of products compatible with DVD, SD Memory Cards and other bridge media. In October 2005, Matsushita introduced the world's smallest high-resolution SD Memory Card camcorder. The Company also launched the first 3CCD DVD camcorder for global markets in February 2006...

  • Page 22
    ...increased sales of SD Memory Cards in fiscal 2006, particularly for products such as flat-panel TVs, digital cameras and mobile phones. In fiscal 2007, Matsushita will launch a new 4GB SD High-Capacity (HC) Memory Card*2 to meet growing consumer needs related to the recording and storage of HD video...

  • Page 23
    ... air conditioner Child's room Wireless camera Wireless Bridge Wireless LCD TV Cordless IP phone Laptop PC Office LAN Mobile Phone Internet Cable/DSL/FTTH Cordless IP phone Living room STB/Modem Plasma TV Kitchen IP phone In-home server Door camera Living Station Networked appliances share...

  • Page 24
    ...business solutions. The Company draws on its advanced technologies and R&D resources to deliver optimized solutions for customers. In fiscal 2006, Matsushita released a series of systems and products that provide total building and area security solutions, utilizing an Integrated IP Network Platform...

  • Page 25
    HOME APPLIANCES In home appliances, including household appliances, refrigeration, air conditioning, heating, healthcare systems, lighting and environmental systems, Matsushita strives to develop value-added products that meet rapidly changing customer needs and growing interest in health and the ...

  • Page 26
    ... in August 2005, aiming to increase production capacity in China and achieve further growth. Refrigeration, Air Conditioning and Heating Matsushita manufactures a wide range of consumer- and industry-use products including air conditioners and refrigerators, water heating systems that use carbon...

  • Page 27
    ... total production to date exceeding 100 million units in February 2006. At the same time, the Company released a micro-mist sauna for the bathroom, attracting significant market acclaim in Japan. In October 2005, combining the Company's black-box technologies with those of MEW, Matsushita launched...

  • Page 28
    ... for plasma TVs and DVD recorders. Meanwhile, at its new plant in Uozu, Japan, Matsushita became the world's first company to The Integrated Platform, used in a broad range of digital electronics, from mobile phones to personal and home AV systems 26 Matsushita Electric Industrial Co., Ltd. 2006

  • Page 29
    ... products, including home appliances, AV equipment and industrial equipment. Fiscal 2006 saw strong sales of power brushless motors for document production equipment, and, in North America, fan motors for refrigerators. Matsushita also accelerated the implementation of its value chain strategy...

  • Page 30
    ... product strategies on the "Eco-life Home" concept, which emphasizes safety, security, health, comfort and high energy efficiency. The Company is developing its main businesses of detached housing, asset and property management and home remodeling based on this "Eco-life" concept. In fiscal 2006...

  • Page 31
    ... 2006 slipped below the level of the previous fiscal year, due mainly to stagnant sales of DVD recorders and audio equipment. Under these circumstances, with the aim of securing growth and increased profitability, JVC accelerated structural reforms, including dissolution of its in-house company...

  • Page 32
    ... in fiscal 2006. This investment was used to strengthen R&D in priority areas including the Integrated Platform, full HD PDPs, household fuel cell cogeneration systems, and High Definition Power Line Communications (HD-PLC). The Company is pushing ahead with its value chain strategy in order...

  • Page 33
    ... and high-capacity technologies, fuel cell cogeneration systems that contribute to environmental preservation, and healthcare infrastructures and products to make healthcare at home a reality. Matsushita will also pursue further R&D efficiency and quality to meet all of the Company's targets...

  • Page 34
    ... organization, the Company has limited the term of each Director to one year. legal authority to receive reports from Directors, employees and accounting auditors. Full-time Senior Auditors also attend important management meetings and conduct checks in order to ensure effective monitoring. To...

  • Page 35
    ... policy on April 28, 2006 as the policy toward large-scale purchases of Matsushita shares (Enhancement of Shareholder Value [ESV] plan). For more information, please visit the Company's Web site: http://panasonic.co.jp/corp/news/official.data/data.dir/en0604286/en060428-6.html. Information Security...

  • Page 36
    ... for dismissal of an accounting auditor to a general meeting of shareholders. The board of corporate auditors also has the right to directly dismiss an accounting auditor under certain conditions. Matsushita's directors must obtain the con- A NYSE-listed U.S. company must have an audit committee...

  • Page 37
    ... meeting of shareholders. With respect to the requirements of Rule 10A-3 under the U.S. Securities Exchange Act of 1934 relating to listed company audit committees, Matsushita relies on an exemption under that rule which is available to foreign private issuers with a board of corporate auditors...

  • Page 38
    ... Japanese stocks as part of its investment securities. Over the past several years, the value of most of these stocks has dropped substantially due to the stagnant Japanese economy, resulting in losses in valuation declines of investment 36 Matsushita Electric Industrial Co., Ltd. 2006 securities...

  • Page 39
    ...forming alliances and partnerships with other major manufacturers to strengthen technologies and the development of product formats, such as next-generation home and mobile networking products, data storage devices, and software systems. Despite these efforts, Matsushita's competitors may succeed in...

  • Page 40
    ... regulations governing the telecommunications businesses and electric product safety, national security-related laws and regulations and export/import laws and regulations, as well as commercial, antitrust, patent, product liability, environmental laws and regulations, consumer protection, financial...

  • Page 41
    ... effect on its business operations Matsushita's headquarters and major facilities including manufacturing plants, sales offices and research and development centers are located in Japan. Matsushita also operates procurement, manufacturing, logistics, sales and research and development facilities...

  • Page 42
    ... introduce environmentally friendly products to the market. Matsushita will continue to strengthen efforts to improve factor evaluations, and work to steadily implement environmental management systems. *The formula used to calculate Factor X is "improvement of quality of life" divided by "reduction...

  • Page 43
    ..., Matsushita will undertake studies of material deterioration caused by long-term use, together with the development of technologies to prevent risks caused by complex factors involved in the extended use of certain products. Furthermore, the Company will establish a new risk management system to...

  • Page 44
    ... of Panasonic Automotive Systems Company, in charge of Sales Yoshihiko Yamada Director of Corporate Management Division for North America, Chairman of Panasonic Corporation of North America Kazuhiro Tsuga In charge of Digital Network and Software Technologies Honorary Chairman of the Board and...

  • Page 45
    ...-Year Summary Financial Review Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Registered Public Accounting Firm Matsushita Electric...

  • Page 46
    ... been used. 2. Cash dividends per share reflect those paid during each fiscal year. 3. U.S. dollar amounts are translated from yen at the rate of ¥117=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2006. 4. In order to be consistent with financial reporting practices...

  • Page 47
    .... Sales of these products increased not only in plasma TVs, digital cameras and other cutting-edge digital AV equipment, but also in home appliances, led by revolutionary refrigerators that feature top-unit compressors to increase internal capacity, tilted-drum washing machines with efficient heat...

  • Page 48
    ... of CRT TV-related associated companies. Net Income As a result of all the factors stated in the preceding paragraphs, the Company recorded a net income of ¥154.4 billion ($1,320 million) for fiscal 2006, an increase of 164% from ¥58.5 billion in the previous year. Net income per common share for...

  • Page 49
    ... also record programs in standard definition formats; (3) development of a mobile phone that allows users to view approximately three hours of "One Segment" terrestrial digital TV broadcasts, using powersaving technology; (4) development of a system LSI for high-speed home power line communication...

  • Page 50
    ... in fiscal 2005, to ¥77.1 billion ($659 million) for fiscal 2006, or 6.2% of sales. This increase was due mainly to the successful introduction of new high-value-added products, combined with the effects of various rationalization activities. Information by Business Segment Sales of Components...

  • Page 51
    ... billion ($9,518 million), from the previous year's ¥1,122.5 billion. Despite increased sales of plasma TVs, digital cameras and DVD recorders, sales declines were recorded in audio equipment, mobile phones and facsimiles in AVC Networks, as well as air-conditioners in Home Appliances, resulting in...

  • Page 52
    ....6 billion ($32,373 million), from the previous year's ¥3,544.3 billion. Although stockholders' equity decreased by ¥87.0 billion due to the repurchase of the Company's own shares as part of Matsushita's strategy to enhance shareholder value, total stockholders' equity increased due mainly to an...

  • Page 53
    ... well as dividend and loan collections from this Reference: Consolidated Statements of Income company, in addition to the sale of Universal Studios Holding 1 Corp. shares. Net cash used in financing activities was ¥524.6 billion ($4,483 million), compared with ¥405.6 billion in fiscal 2005. This...

  • Page 54
    ... Matsushita Electric Industrial Co., Ltd. and Subsidiaries March 31, 2006 and 2005 Millions of yen Thousands of U.S. dollars (Note 2) Assets Current assets: 2006 2005 2006 Cash and cash equivalents (Note 10) ...¥ 1,667,396 ¥ 1,169,756 Time deposits (Note 10)...11,001 144,781 Short-term...

  • Page 55
    ... dollars (Note 2) Liabilities and Stockholders' Equity Current liabilities: 2006 2005 2006 Short-term borrowings, including current portion of long-term debt (Notes 7, 10 and 19) ...¥ 0,339,845 ¥ 0,385,474 Trade payables (Note 5): Notes ...66,316 37,099 Accounts ...914,963 828,920 Total trade...

  • Page 56
    Consolidated Statements of Income Matsushita Electric Industrial Co., Ltd. and Subsidiaries Years ended March 31, 2006, 2005 and 2004 Millions of yen Thousands of U.S. dollars (Note 2) 2006 Revenues, costs and expenses: 2005 2004 2006 Net sales (Note 5)...¥ 8,894,329 ¥ 8,713,636 ¥ 7,479,...

  • Page 57
    Consolidated Statements of Stockholders' Equity Matsushita Electric Industrial Co., Ltd. and Subsidiaries Years ended March 31, 2006, 2005 and 2004 Millions of yen Thousands of U.S. dollars (Note 2) 2006 Common stock (Notes 13 and 17): 2005 2004 2006 Balance at beginning of year ...Â¥ 0,258,...

  • Page 58
    Consolidated Statements of Cash Flows Matsushita Electric Industrial Co., Ltd. and Subsidiaries Years ended March 31, 2006, 2005 and 2004 Millions of yen Thousands of U.S. dollars (Note 2) 2006 Cash flows from operating activities (Note 17): 2005 2004 2006 Net income...Â¥ 0,154,410 ...

  • Page 59
    ..., and housing business. Most of the Company's products are marketed under "Panasonic" and several other trade names, including "National," "Technics," "Quasar," "Victor," "JVC" and "PanaHome." Sales in fiscal 2006 were categorized as follows: AVC Networks-41%, Home Appliances-13%, Components...

  • Page 60
    .... Leases of such assets were principally accounted for as direct financing leases and included in "Trade receivables- Accounts" and "Noncurrent receivables" in the accompanying consolidated balance sheet. On April 1, 2005, the Company sold the majority shares of this subsidiary to a third party...

  • Page 61
    ... net income per share assumes the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock. (o) Cash Equivalents Derivative financial instruments utilized by the Company are comprised...

  • Page 62
    ... the accounting provision of SFAS No. 123, as amended, had been adopted, the impact on the Company's net income for the three years ended March 31, 2006 would not be material. (t) Use of Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of...

  • Page 63
    ... financial statements since that date. MEW is a manufacturer of household electric equipment, building products and related materials based in Osaka, Japan. As a result of the acquisition, the Company is expected to provide a comprehensive range of home electric and household equipment and systems...

  • Page 64
    ... to amortization, which have a weighted-average useful life of approximately seven years and include technologies of ¥9,592 million with a 10-year weighted-average useful life, and software of ¥8,892 million with a 5-year weighted-average useful life. The total amount of goodwill is included in...

  • Page 65
    ... at March 31, 2006 and 2005 and for the three years ended March 31, 2006 is shown below. The most significant of these associated companies are Toshiba Matsushita Display Technology Co., Ltd. (TMD) and Sumishin Matsushita Financial Services Co., Ltd. (SMFC). At March 31, 2006, the Company has a 40...

  • Page 66
    ... dollars 2006 2005 2004 2006 Purchases from ...¥ 261,458 Sales to...204,740 ¥ 260,745 192,489 ¥ 366,943 179,270 $2,234,684 1,749,915 Dividends received from associated companies for the three years ended March 31, 2006 are as follows: Millions of yen Thousands of U.S. dollars 2006 2005...

  • Page 67
    ..., Millions of yen Fair value Gross unrealized holding gains Gross unrealized holding losses and gross unrealized holding losses of available-for-sale securities included in short-term investments and investments and advances at March 31, 2006 and 2005 are as follows: 2006 Thousands of U.S. dollars...

  • Page 68
    ... in available-for-sale securities at March 31, 2006 and 2005 are as follows: Millions of yen Thousands of U.S. dollars 2006 Cost Fair value Cost 2005 Fair value Cost 2006 Fair value Due within one year...¥ 056,769 ¥ 056,753 ¥ 011,978 Due after one year through five years ...137,184 136...

  • Page 69
    ...book value of machinery and equipment under capital leases was ¥168,374 million ($1,439,094 thousand) and ¥47,765 million, and the related accumulated depreciation recorded was ¥101,025 million ($863,462 thousand) and ¥27,052 million, respectively. During the years ended March 31, 2006, 2005 and...

  • Page 70
    ..., the Company sold the majority shares of this subsidiary to a third party, and began to account for its remaining investment using the equity method. Investments in non-cancelable financing leases at March 31, 2005 were as follows: Millions of yen 2005 Total minimum lease payments to be received...

  • Page 71
    ...by using a purchase price offered by a third party. The Company also recorded an impairment loss related to write-down of land and buildings used in connection with the manufacture of certain information and communications equipment at a domestic subsidiary. As a result of plans to reduce production...

  • Page 72
    ...a decrease in the estimated fair value of the reporting unit caused by decreased profit expectation and the closure of certain businesses in Europe and Asia. The Company recognized an impairment loss of ¥3,559 million during fiscal 2005 related to goodwill of a cable-broadcasting subsidiary. As the...

  • Page 73
    ... value during fiscal 2006, 2005 and 2004, respectively. The impairment loss is included in other deductions in the consolidated statements of income. 10. Long-Term Debt and Short-Term Borrowings Long-term debt at March 31, 2006 and 2005 is set forth below: Millions of yen Thousands of U.S. dollars...

  • Page 74
    ..., plant and equipment. At March 31, 2006, property, plant and equipment with a book value of ¥6,645 million ($56,795 thousand) was pledged as collateral by subsidiaries for secured yen loans mainly from Development Bank of Japan. At March 31, 2006 and 2005, short-term loans subject to such general...

  • Page 75
    ... (Note 3) ...- Sale of majority shares of Matsushita Leasing & Credit (12,867) Co., Ltd...Foreign currency exchange impact...3,898 Benefit obligations at end of year ...1,930,073 Change in plan assets: Fair value of plan assets at beginning of year...1,294,306 Actual return on plan assets...242,056...

  • Page 76
    ... allocation of the Company's pension plans at March 31, 2006 and 2005 are as follows: 2006 2005 Asset category: Equity securities ...47% Debt securities ...37 Life insurance company general accounts ...9 Other ...7 Total ...100% Each plan of the Company has a different investment policy, which is...

  • Page 77
    ...three years ended March 31, 2006 are summarized as follows: Millions of yen Domestic Foreign Total For the year ended March 31, 2006 Income before income taxes...Â¥ 292,083 Income taxes: 63,966 Current...Deferred ...66,377 Total income taxes ...Â¥ 130,343 For the year ended March 31, 2005 Income...

  • Page 78
    ...pro forma standard taxation system. The Company and its subsidiaries in Japan are subject to a National tax of 30%, ...years ended March 31, 2006 are as follows: Millions of yen Thousands of U.S. dollars 2006 2005 2004 2006 Deferred tax expense (exclusive of the effects of other components listed...

  • Page 79
    ... allowances at March 31, 2006. The net change in total valuation allowance for the years ended March 31, 2006, 2005 and 2004 was an increase of ¥152,947 million ($1,307,239 thousand), ¥65,127 million and ¥4,817 million, respectively. At March 31, 2006, the Company and certain of its subsidiaries...

  • Page 80
    ... the conversion of bonds for the year ended March 31, 2004. The Company sold 119,422 shares and 888,683 shares of its treasury stock for the years ended March 31, 2006 and 2005, respectively. The difference between sales price and book value was charged to capital surplus in the consolidated balance...

  • Page 81
    ...the year ended March 31, 2005 Translation adjustments: Translation adjustments arising during the period...¥(0 35,172 ¥ - Less: Reclassification adjustment for losses included in net income ...1,473 - Net translation adjustments ...36,645 - Unrealized holding gains of available-for-sale securities...

  • Page 82
    ... ¥ 18.15 18.00 $0.59 0.59 Stock options were outstanding for the years ended March 31, 2005 and 2004, but were not included in the calculation of diluted net income per share because the stock options' effect would be antidilutive (see Note 13). 80 Matsushita Electric Industrial Co., Ltd. 2006

  • Page 83
    ..., before the related tax effects, for the years ended March 31, 2006, 2005 and 2004 are as follows: Millions of yen Thousands of U.S. dollars 2006 2005 2004 2006 Expenses associated with the implementation of early retirement programs: Domestic...Â¥ 031,446 Overseas ...5,573 Total...37,019...

  • Page 84
    ... of manufacturing plants and sales offices in Japan for information and communications equipment business. Total restructuring charges amounted to ¥57,742 million, including expenses associated with the implementation of early retirement programs of ¥52,666 million. Home Appliances Home Appliances...

  • Page 85
    ... Networks AVC Networks segment restructured mainly to address price declines in digital products. The restructuring activities mainly consisted of the implementation of early retirement programs mainly in Japan for both video and audio equipment business and information and communications equipment...

  • Page 86
    ...140, "Accounting for Transfer and Servicing of Financial Assets and Extinguishments of Liabilities." Interest expenses and income taxes paid, and noncash investing and financing activities for the three years ended March 31, 2006 are as follows: Thousands of U.S. dollars Millions of yen 2006 2005...

  • Page 87
    ... The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and cash equivalents, Time deposits, Trade receivables, Short-term borrowings, Trade payables and Accrued expenses The carrying...

  • Page 88
    ...or issued for purposes other than trading, at March 31, 2006 and 2005 are as follows: Millions of yen Thousands of U.S. dollars 2006 Carrying amount Fair value Carrying amount 2005 Fair value Carrying amount 2006 Fair value Non-derivatives: Assets: Short-term investments ...¥(056,753 ¥(056,753...

  • Page 89
    ... guarantees the performance of products delivered and services rendered for a certain period or term. The change in accrued warranty costs for the years ended March 31, 2006 and 2005 are summarized as follows: Millions of yen Thousands of U.S. dollars 2006 2005 2006 Balance at beginning of year...

  • Page 90
    ... for the three years ended March 31, 2006 is shown in the tables below: Thousands of U.S. dollars 2006 2005 2004 2006 Sales: AVC Networks: Customers...¥ 3,894,274 ¥ 3,745,339 ¥ 3,771,516 Intersegment ...91,814 113,442 68,752 Total ...3,986,088 3,858,781 3,840,268 Home Appliances: 1,069,282...

  • Page 91
    Millions of yen Thousands of U.S. dollars 2006 2005 2004 2006 Segment profit: AVC Networks ...¥ 190,885 ¥ 127,366 Home Appliances...77,135 74,794 Components and Devices...81,111 57,761 MEW and PanaHome...72,694 66,761 JVC...(5,782) 9,887 Other...62,225 38,352 Corporate and eliminations ...(...

  • Page 92
    ... patents and software. Sales attributed to countries based upon the customer's location and property, plant and equipment are as follows: Millions of yen Thousands of U.S. dollars 2006 2005 2004 2006 Sales: Japan ...Â¥ 4,611,440 North and South America ...1,387,424 Europe ...1,113,556 Asia and...

  • Page 93
    ... public company is subject to: Millions of yen Thousands of U.S. dollars 2006 2005 2004 2006 Sales: Japan: Customers...¥ 4,945,802 ¥(5,033,645 ¥(3,989,576 Intersegment ...1,944,537 1,586,407 1,521,459 Total ...6,890,339 6,620,052 5,511,035 North and South America: Customers...1,340,352...

  • Page 94
    ... 2006, the Board of Directors approved plans to proactively provide returns to shareholders and continue the policy toward large-scale purchases of the Company's shares, with the aim of implementing its policy of shareholder-oriented management. Specifically, the Company plans to increase total cash...

  • Page 95
    ... Public Accounting Firm The Board of Directors Matsushita Electric Industrial Co., Ltd. We have audited the accompanying consolidated balance sheets (expressed in yen) of Matsushita Electric Industrial Co., Ltd. and subsidiaries as of March 31, 2006 and 2005, and the related consolidated statements...

  • Page 96
    ...2006) Panasonic AVC Networks Company Panasonic Automotive Systems Company Panasonic System Solutions Company Matsushita Home Appliances Company Healthcare Business Company Lighting Company Semiconductor Company Motor Company Principal Domestic Subsidiaries Corporate Headquarters Investor Relations...

  • Page 97
    ... data is unaudited and has not been reviewed under Statements on Auditing Standards No.100 "Interim Financial Information," by Matsushita's independent registered public accounting firm. Major Shareholders (As of March 31, 2006) Name Share ownership (in thousands of shares) Percentage of total...

  • Page 98
    http://panasonic.net/ Matsushita Electric Industrial Co., Ltd. This entire report is printed with soy ink on paper which is 50% recycled. Printed in Japan