Panasonic 2010 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ... In fiscal 2010, after adding SANYO Electric Co., Ltd. and its subsidiaries to the Panasonic Group, the Company began work on maximizing synergies, mainly in environmental and energy-related businesses. Moving forward, the Company aims to become the 'No. 1 Green Innovation Company in the Electronics...

  • Page 3
    ... individual investors to institutional investors, to understand the Company's management policies and business strategies. The fiscal 2010 report focuses on growth strategies contained in the Company's new midterm management plan. Please refer to the links to the right for information on Panasonic...

  • Page 4
    ... ...Number of employees: Domestic ...Overseas ...Total ...Per share data (Yen) Net income (loss) attributable to Panasonic Corporation per common share Basic ...Diluted ...Cash dividends per share ...Panasonic Corporation shareholders' equity per share ...Ratios (%) Operating profit/sales...

  • Page 5
    ... 2008 2009 2010 -5.0 n Domestic n Overseas n Operating Profit [left scale] Operating Profit/Sales Ratio [right scale] n Net Income Attributable to Panasonic Corporation [left scale] Net Income Attributable to Panasonic Corporation/ Sales Ratio [right scale] Panasonic Corporation Shareholders...

  • Page 6
    ...2009 Launched Sales of EVERLEDS LED Bulbs The Company began selling low power consumption and long-life LED bulbs, EVERLEDS in Japan. m Refer to Lighting business on page 29. October 1, 2009 Developed Lithium-ion Battery Module Panasonic developed a high-energy lithium-ion battery module with high...

  • Page 7
    ... double-digit growth in overseas sales, expand strategic businesses, and reinforce our management structure through manufacturing innovation. We also accelerated environmental sustainability management. We were successful at strengthening our management structure, including reducing fixed costs...

  • Page 8
    ... March 2010. Despite this top-line decline, operating profit increased sharply to ¥190.5 billion as we strengthened our management structure. This included rationalizing materials costs and reducing fixed costs. But we also recorded net non-operating expenses of ¥219.8 billion, including business...

  • Page 9
    ... is commoditization of products. But under our new midterm management plan, GT12, we must take steps from the ground up to address the structural problems in our businesses to overcome these challenges. * Digital AV networks business, Car electronics business, Appliance solutions business and Black...

  • Page 10
    ...this goal through energy creation, energy storage, energy management systems and products related to eco-cars. Our key focus to become globally-oriented is to generate significantly higher sales in emerging countries, whose presence continues to grow in the global economy. We have seen new customers...

  • Page 11
    ... security, lighting and air-conditioning systems, for Transformation Indexes Indexes Sales ratio of six key businesses New Business Fields Sales of energy systems business Sales in emerging countries* Overseas Overseas sales ratio Sales of systems & equipment business Solutions & Systems Overseas...

  • Page 12
    ... severe business conditions to continue, we will strive to improve our performance as soon as possible and distribute earnings to shareholders. And this starts in fiscal 2011, the first year of GT12, by growing sales and returning to profitability on the bottom line. 10 Panasonic Corporation 2010

  • Page 13
    ...own expertise 'Green Life Innovation' entails realizing green lifestyles to enrich people's lives through the provision of innovative businesses, products and services. Central to this are the creation, storage and saving of energy as well as energy management for controlling these. Panasonic will...

  • Page 14
    ... Transformation 2012 (GT12) Lay foundation to be a Green Innovation Company 2010 2009 GT12 Themes Integ ratin Paradigm shift for growth From existing businesses to new businesses such as energy From Japan-oriented to globally-oriented From individual products-oriented to solutions and systems...

  • Page 15
    ... generating 42% of our sales from 6 key businesses. Among these, ¥850.0 billion in sales is targeted from the energy systems business. Sales Ratio of Six Key Businesses (%) 60 Shifting to Globally-oriented Driven by expanding sales in emerging countries, we aim to raise overseas sales from 48% to...

  • Page 16
    ..., fuel cells) Energy storage (rechargeable batteries) Energy management systems, etc. Sales Target by Six Key Businesses ¥10 trillion ¥1.2 trillion sales growth Healthcare Security LED Backlight TV Network AV Heating/ Refrigeration/ Air Conditioning Air conditioners Air purifiers Commercial-use...

  • Page 17
    ... Systems Business, as a Panasonic Group flagship business, is ¥850.0 billion, a ¥310.0 billion increase from fiscal 2010. These sales are to be generated from energy creation, energy storage and management systems, as well as products related to eco-cars. Energy Creation: Solar Cells Solar cells...

  • Page 18
    ...hot water supply and other information and detailed control by networking appliances and facilities in homes. We are continuing to develop related products for an AC/ DC hybrid wiring system that will reduce energy loss during electric current conversion. The Corporate Division for Promoting Energy...

  • Page 19
    ... set the goal of having 3D models account for 70% (unit base) of our plasma TVs sold in fiscal 2013. We aim to make our products more attractive by dramatically increasing their energy-saving performance, while at the same time enhancing picture quality with new panel technologies. In LCD TVs, in...

  • Page 20
    ... for the building systems field. A Robotic Bed, part of which transforms into a wheelchair. LED bulbs, EVERLEDS series Network camera Main monitor Panasonic plans to expand sales of LINK products, which fuse various equipment and devices. Entry watching system 18 Panasonic Corporation 2010

  • Page 21
    ... and systems product sales in BRICs + V and MINTS + B to ¥330.0 billion and raise the Group overseas sales ratio to 55% in fiscal 2013, from 48% in fiscal 2010. Our strategy is to target the high-volume segments through customer perspective manufacturing, expand the home appliance business globally...

  • Page 22
    ...the 'eco ideas' logo. * Including sales decrease, etc. Collaboration Examples Appliance business Cost reduction through centralization Unify business strategies - Launch collaboration products - Unify development and consolidate operating sites Procurement, IT, etc. - Make optimum price the Group...

  • Page 23
    ... Project Management of large-scale investments Theoretical inventory applied throughout all Group companies Centralize procurement, strengthen design value engineering Cost reduction of more than ¥1.5 trillion Internalize cost management process Apply to all products Panasonic Corporation 2010...

  • Page 24
    ... Home Appliances Company. SANYO Solar cells, lithium-ion batteries, optical pickups, capacitors, semiconductors, digital cameras, LCD TVs, projectors, showcases, commercial air conditioners, medical information systems, refrigerators, washing machines, room air conditioners, car navigation systems...

  • Page 25
    ...฀Company •฀Lighting฀Company •฀Panasonic฀Ecology฀Systems฀Co.,฀Ltd. Trillions of yen 5 4 3 2 1 0 Billions of yen 250 200 150 Profit/sales ratio % 10 8 5.8% 66.5 6 4 2 1.14 100 50 2006 2007 2008 2009 2010 0 2006 2007 2008 2009 2010 0 •฀Panasonic฀Electric฀Works...

  • Page 26
    ... m Digital AVC In the digital AVC business, Panasonic is manufacturing a high definition product group containing a variety of AV, security, electronic, and Internet-enabled equipment that can be linked to a flat-panel VIERA TV and easily operated with a single remote (VIERA Link). In fiscal 2010...

  • Page 27
    ...flat-panel TVs. Higher sales were also strongly supported by the networking features of Panasonic's products which enable them to link various devices, as well as basic functions such as extended recording in full HD video and simple operation. Panasonic maintained its top share in the global market...

  • Page 28
    ... for customers, helping improve their productivity. TV Camcorder TV Camcorder Internet HD Visual Communication Unit Microphone HD Visual Microphone Communication Unit m System Networks Panasonic is strengthening its system networks business, which integrates the system solutions and fixed-line...

  • Page 29
    ...-operate touch-screen camera. HDMI connection Growth With Next-Generation "LTE"*1-Compatible Products In December 2010, NTT DOCOMO plans to roll out services using "LTE," a next-generation mobile communications system. Since "LTE" is expected to become a global standard, Panasonic will develop and...

  • Page 30
    ... room air conditioner sales during unseasonable weather. In Japan, however, refrigerators, room air conditioners, tilted-drum washer/dryers and other product models featuring "ECO NAVI," which automatically saves electricity depending on the mode of use, won strong support as appliances with a high...

  • Page 31
    ...Review and Strategies m Lighting In the lighting business, Panasonic has been actively developing products that conserve energy and resources, and are based on universal design. The Company has maintained a top-class share in the lighting field in Japan. LED Bulbs Sales Strong; Increased Production...

  • Page 32
    ... of energy use Home-use fuel cell Grid power Accumulator battery AC/DC outlet Control panel Optical fiber Information distribution panelboard Server Internet LAN AC wiring Use generated electricity in AC wiring Eco Cute Room air conditioner Refrigerator Digital TV This system reduces energy...

  • Page 33
    ... Power conditioner Solar panel module (Converts DC into AC) Power meter m PanaHome PanaHome is developing its business under the basic concept of offering "Eco-Life Homes" that provide people- and environment-conscious living spaces. PanaHome centers on detached housing, asset management and home...

  • Page 34
    ... accelerate the development of products featuring lower power consumption and enhanced cost competitiveness for the high-volume segments of the semiconductor market. Panasonic is also expanding its semiconductor business, taking the global environment into account, such as by increasing sales of its...

  • Page 35
    ... the Home Appliances Home-use accumulator Backup power supplies battery systems Company. Panasonic also transferred the Information Equipment Motor Business to Minebea Motor Manufacturing Corporation. Panasonic aims to grow globally through the vertical integration of its finished product divisions...

  • Page 36
    ...Smart Energy System (SES) A smart energy solution that unites SANYO's sophisticated technologies to use energy more efficiently. Plans call for developing business in various fields, ranging from houses and shops to factories and ships. Integrated management and control of Energy Generation, Energy...

  • Page 37
    .... Europe China/East Asia Japan Number of bases (as of April 30, 2010) Manufacturing Singapore, Thailand, Malaysia, India, Vietnam, Philippines 3 43 35 11 Services Sales Technical center USA, Mexico, Brazil South Asia North/South America FA Business (Mounting Equipment) Global Network Panasonic...

  • Page 38
    ...In terms of regional strategy, Panasonic hopes to realize strong growth by focusing business resources on countries with high growth potential, such as the Balkan countries, Turkey and Southern Europe to increase market share. In fiscal 2010, Panasonic actively introduced major home appliances such...

  • Page 39
    .... In terms of product line-up, in addition to digital cordless phones where Panasonic has long held a high market share, PTR is boosting sales activities with the goal of capturing a double-digit market share during fiscal 2013 mainly in digital AV products such as flat-panel TVs and digital cameras...

  • Page 40
    ... 2011, Panasonic will continue to concentrate on plasma TV 3D technology and associated power-saving technology, and next-generation organic EL display development, and maintain its focus on energy generation, energy storage, energy management and other energy system-related technologies as key...

  • Page 41
    ... companies. How Fuel Cells Work Reaction of Hydrogen and Oxygen Electricity + Heat Oxygen Electricity AC Electricity Inverter DC Electricity Hot water systems reduces electrical energy transmission losses, and allows the heat from power generation to be used for hot water in the home, enabling...

  • Page 42
    ... the scale of its business operations, thus promoting IP activities that integrate IP in business strategies. In fiscal 2010, Panasonic, with an eye on business expansion in emerging markets as well as developed countries, worked to strengthen its global IP portfolio through an ongoing drive to file...

  • Page 43
    ... washing machines designed according to these principles have garnered strong support in Europe. Developing Designs That Instantly Say "Made by Panasonic" Our full HD 3D product lineup led by VIERA is highly acclaimed for designs that embody the essence of Panasonic. They are cutting edge in terms...

  • Page 44
    ...swift and strategic decision-making, as well as the optimum monitoring of Groupwide matters. Specifically, the Board of Directors concentrates on corporate strategies and the supervision of business domain companies, while Executive Officers handle responsibilities relating to day-to-day operations...

  • Page 45
    ... and Corporate Auditors> Board of Directors Election Executive Officers Empowerment & Supervision Integration of Group's Comprehensive Strengths Supervisory Functions Corporate Strategy Decision-making Functions Execution Functions Shareholders' Meeting Subsidiaries (Business Domain Companies...

  • Page 46
    ...Internal Control Systems Compliance The Company has published the Panasonic Code of Conduct in 22 languages as a unified global standard that spells out in concrete terms how its management philosophy should be implemented. The code applies to all the Panasonic Group's Directors, Executive Officers...

  • Page 47
    ...by the Company are used and shared safely. 3. Conduct regular training programs for all Panasonic employees to raise awareness of information security and foster a culture of information management. Internal Control Over Financial Reporting Panasonic has documented its internal control system, with...

  • Page 48
    ... a midterm management plan called GP3 from fiscal 2008 to fiscal 2010. Based on the plan's fundamental concept of delivering steady growth with profitability, the Company sought to achieve double-digit growth in overseas sales, expand strategic businesses, innovate in manufacturing and implement...

  • Page 49
    ... Company's Web site: http://panasonic.co.jp/corp/news/official.data/data.dir/ en100507-8/en100507-8-1.pdf Evaluation of Measures by the Board of Directors and Rationale for Evaluation Panasonic's midterm management plan was formulated as a specific measure to increase the Company's corporate value...

  • Page 50
    ... corporate auditor of the Company who has never been a director, accounting counselor, executive officer, manager or in any other capacity as an employee of the company or any of its subsidiaries prior to the appointment. Under the Company Law, Panasonic is required to establish a Board of Corporate...

  • Page 51
    ... ordinary general meeting of shareholders. A Corporate Auditor also has a statutory duty to examine the financial statements of Panasonic, and receives auditors' reports from an accounting auditor (a certified public accountant or an accounting firm). The Board of Corporate Auditors has the power to...

  • Page 52
    ... for Promoting Systems & Equipment Business and Electrical Supplies Sales, Project Sales and Building Products Sales Yasuo Katsura Representative in Tokyo / Director, Corporate Division for Government & Public Affairs Takashi Toyama President, System Networks Company Senior Managing Directors...

  • Page 53
    ... results Foreign exchange rate fluctuations may adversely affect Panasonic's business, operating results and financial condition, because its international business transactions and costs and prices of its products and services in overseas countries are affected by foreign exchange rate changes. In...

  • Page 54
    ... controls, and changes in the tax system or the rate of taxation in countries where Panasonic operates businesses. With respect to products exported overseas, tariffs, other barriers or shipping costs may make Panasonic's products less competitive in terms of price. Expanding its overseas business...

  • Page 55
    ... make payments on time, Panasonic's business, operating results and financial condition could be adversely affected. Risks Related to Panasonic's Management Plans Panasonic is implementing a midterm management plan called "Green Transformation 2012" (GT12), announced on May 7, 2010, which runs from...

  • Page 56
    ... information systems could be damaged as a result of disasters or unpredictable events, which could have an adverse effect on its business operations Panasonic's headquarters and major facilities including manufacturing plants, sales offices and research and development centers are located in Japan...

  • Page 57
    ... the world, Panasonic's manufacturing and sales may be materially disrupted. these associated companies do not generate profits, Panasonic's business results and financial condition may be adversely affected. American Depositary Share (ADS) holders have fewer rights than shareholders and may not...

  • Page 58
    ... machines in Europe; targeting emerging markets through local-oriented manufacturing; commercializing full HD 3D TVs that are expected to open a new era in television; and strengthening global systems and equipment businesses. These actions drove the Panasonic Group to new growth. Income (Loss...

  • Page 59
    ... Company recorded a net loss attributable to Panasonic Corporation of 103 billion yen for fiscal 2010, an improvement of 276 billion yen from the previous year's net loss attributable to Panasonic Corporation of 379 billion yen. Results of Operations by Business Segment Digital AVC Networks sales...

  • Page 60
    ... sales declines. Information by Business Segment Millions of yen 2010 2009 2008 Sales: Digital AVC Networks ...Home Appliances...PEW and PanaHome ...Components and Devices ...SANYO ...Other ...JVC ...Eliminations...Total ...Segment profit (loss): Digital AVC Networks ...Home Appliances...

  • Page 61
    ... mainly to an increase in sales of numerous products, including flat-panel TVs, air conditioners and washing machines, thanks to strong market conditions. Breakdown of Sales by Region Millions of yen 2010 2009 2008 Domestic Sales ...Overseas Sales: North and South America...Europe ...Asia and...

  • Page 62
    ...'s total of 494 billion yen. Panasonic implemented capital investment primarily to increase production capacity in strategic business areas such as batteries and flat-panel TVs. Principal capital investments Profit Distribution During fiscal 2010, the Company distributed an interim (semiannual) cash...

  • Page 63
    Financial Review consisted of PDP manufacturing facilities for the domestic Plant No. 5 in Amagasaki, Hyogo Prefecture, Japan; LCD panel production facilities for the Himeji plant in Hyogo Prefecture, Japan; and lithium-ion battery production facilities for the Suminoe plant in Osaka Prefecture, ...

  • Page 64
    ...assets: Cash and cash equivalents ...Time deposits ...Short-term investments...Trade receivables: Related companies...Notes ...Accounts ...Allowance for doubtful receivables...Net trade receivables ...Inventories ...Other current assets ...Total current assets ... 2010 2009 ¥1,109,912 92,032 - 37...

  • Page 65
    ...gains (losses) of available-for-sale securities ...Unrealized gains (losses) of derivative instruments ...Pension liability adjustments ...Total accumulated other comprehensive loss ...Treasury stock, at cost: 382,448,008 shares (382,411,876 shares in 2009)...Total Panasonic Corporation shareholders...

  • Page 66
    Consolidated Statements of Operations Panasonic Corporation and Subsidiaries Years ended March 31, 2010, 2009 and 2008 Millions of yen 2010 2009 2008 Revenues, costs and expenses: Net sales: Related companies...Other ...Total net sales ...Cost of sales ...Selling, general and administrative ...

  • Page 67
    ... Panasonic Corporation and Subsidiaries Years ended March 31, 2010, 2009 and 2008 Millions of yen 2010 2009 2008 Common stock: Balance at beginning of year ...Balance at end of year ...Capital surplus: Balance at beginning of year ...Sale of treasury stock...Decrease from issuance of new shares...

  • Page 68
    ...-term debt...Dividends paid to Panasonic Corporation shareholders ...Dividends paid to noncontrolling interests ...Repurchase of common stock ...Sale of treasury stock...Purchase of noncontrolling interests ...Proceeds from issuance of shares by subsidiaries ...Other ...Net cash provided by (used...

  • Page 69
    Investor Information (As of March 31, 2010) Stock Information Number of Shares Issued 2,453,053,497 (Including 382,448,008 shares held by Panasonic) Number of Shareholders 316,182 Japanese Stock Exchange Listings Tokyo, Osaka and Nagoya Stock Exchanges Overseas Stock Exchange Listing New York ...

  • Page 70
    ... Works. Sales of the Company's first product, an improved attachment plug, began. 1927 The "National" brand name was registered. 1933 A divisional system was instituted. 1935 The Company was reorganized and renamed Matsushita Electric Industrial Co., Ltd. 1949 The Company's shares were listed...

  • Page 71
    ... reviewed under Statements on Auditing Standards No. 100 "Interim Financial Information," by Panasonic's independent registered public accounting firm. Investor Relations Offices Japan Osaka Panasonic Corporation, Investor Relations Office 1006, Oaza Kadoma, Kadoma-shi, Osaka 571-8501, Japan Phone...

  • Page 72
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