Panasonic 2011 Annual Report Download - page 15

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page 14
Panasonic Annual Report 2011
Highlights
Announcement of agreements toward Panasonic’s
acquisition of all shares of PEW and SANYO
on July 29, 2010
* Electronic commercial paper (short-term bonds)
for the purpose of securing short-term funds
PEW and SANYO became wholly-owned
subsidiaries of the Company by way of
tender offers and, thereafter, share
exchanges on April 1, 2011. In the lead up
to the tender offers, short-term liabilities
increased due to the issue of commercial
paper* and other factors. In order to
reorganize its debt maturity profile and extend
repayment schedules over longer terms, the
Company issued unsecured straight bonds
to a value of 500.0 billion yen in March 2011.
In this manner, Panasonic took steps to
enhance the stability of its financial position,
which serves as both the backbone behind
the Group’s business and organizational
restructuring efforts and the driving force for
realizing Group-wide growth.
To expeditiously implement strategic
investment, research and development, and
business restructuring in any environment,
Panasonic will strive for a thorough
reinforcement of management based on its
own funds that focuses on cash flows, and
aims to enhance return on capital and
maintain financial soundness.
Making Two Companies into
Wholly-Owned Subsidiaries and
the Group’s Financial Policy
Jul 29 Oct 29 Apr 1 Apr 28 Jan 1
Growth strategy review
(Transformation Project)
Announced the
Company’s
decision to
make PEW and
SANYO into
wholly-owned
subsidiaries
Announced
details of the
reorganization
plan framework
Complete
procedures
to make PEW
and SANYO into
wholly-owned
subsidiaries
Announced
details of the
growth strategy
Launch the
new business
structure
Push for the bringing
forward of business and
organizational restructuring
Promote efforts
to accelerate the
growth strategy
FY2011 FY2012 FY2013 –
Group Reorganization Schedule
Under these circumstances, Panasonic is
currently undergoing a major transformation.
A substantial component of this transformation
is the inclusion of PEW and SANYO as
wholly-owned subsidiaries of the Company.
With this as our base, we are reorganizing
the Group’s overall structure while promoting a
new growth strategy. As a company that
takes full advantage of its global competitive
advantage, and with a vision that looks to
the 100th anniversary of the Company’s
founding in 2018, Panasonic will put in place
a new structure that is capable of becoming
the No. 1 Green Innovation Company in the
Electronics Industry as quickly as possible.
Moving forward individual businesses and
the Group as a whole will then ramp up the
pace of growth strategy implementation.
Maximizing the Group’s potential through
business reorganization while striving for
genuine transformation
Group Reorganization and
New Growth Strategy
The Group’s Reorganization Plan and Goals
Immediately following the announcement in
July 2010 that PEW and SANYO would be
made into the Company’s wholly-owned
subsidiaries, Panasonic launched the
Transformation Project taking steps to consider
and assess reorganization details and the
introduction of a new growth strategy. The
Company has adopted three basic concepts
that collectively underpin its plans for
reorganization: to maximize value creation by
strengthening contacts with customers; to
realize speedy and lean management; and, to
accelerate growth businesses by boldly shifting
management resources. Guided by these
basic concepts, we will reorganize all of our
businesses in an effort to accelerate and
maximize synergies. (Please refer to the Special
Feature: Group Strategies from page 17 for
details). Our existing five business segments
of Digital AVC Networks, Home Appliances,
PEW and PanaHome, Components and
Devices, and SANYO will be reorganized to
reflect customers’ perspectives. In specific
terms, existing business segment will be
reorganized into the three business sectors of
Consumer, Components & Devices and
Solutions by business model.
Complementing these efforts to build an
optimal structure, we will look to reform our
head office and businesses. This will entail
large-scale Group-wide reorganization including
restructuring operating sites as well as relocating
personnel. After the reorganization, our
workforce is projected to fall from 385,000 to
350,000 level. Reflecting the substantial scale
of business restructuring proposed, related
structural reform expenses for the fiscal 2012
Chart 4