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Annual Management Announcement Q&A Summary

Q What would be the scale of investment-reduction in flat-panel TVs and how many units are planned for the final production capacity in 2012?
A Regarding the fifth domestic PDP plant in Amagasaki, Panasonic will change the total investment amount from 280 billion yen to 210 billion yen. Originally, it had been planned for three construction stages, but it will be allotted to four stages instead. Regarding IPS Alpha plant in Himeji (LCD plant), total investment of 300 billion yen will be revised to 235 billion yen, and invested for three construction stages instead of two stages. Also after fiscal 2010, the Company aims to watch the market conditions carefully and make investments on a single-year basis. Production capacity for the first stage will be reduced to one-third of the original plan in PDP plant and to half in LCD plant, respectively. Commencement of full-scale mass production will also be postponed. As for annual production capacity, out of approximately 200 million units of global demand for flat-panel TVs, Panasonic aims to secure approximately 40 million units (20% of the market), consisting of 20 million units of plasma TVs and LCD TVs, respectively.
Q How will you deal with the surplus workforce resulting from the withdrawal of unprofitable businesses?
A The Company has already been promoting selection and concentration of businesses and will continue to shift the workforce from underperforming businesses to expanding businesses.
Q Regarding home appliances business, you mentioned that Panasonic is going to expand its product lineups both in Europe and Asia. What do you think of the growth of this business in the future?
A Panasonic will start sales of washing machines and refrigerators in Europe. The Company plans to hold dealers convention and a grand-scale new products show in February. Some business negotiations have already started, and sales training is being actively promoted. The response has been extremely good so far. While in Asia, we can expect almost the same business scale as that of last fiscal year, despite the severe conditions of the world market. We aim to further expand our product lineups for this reason. White goods for Asian market will be one of the main driving forces for our growth in the future.
Q You mentioned that the businesses and products which have had negative earnings since fiscal 2007 and the overseas operating sites that fall under the criteria for withdrawal will in principle be withdrawn. How many businesses and overseas operating sites will fall under such criteria?
A About 20 companies will fall under the withdrawal-criteria. Once they are identified, their treatment does not take time. It is important to find the relevant businesses and take initiatives at an early stage.
Q Regarding energy solutions business that was newly added to strategic businesses, what are your concrete expansion plans for fiscal 2010? At a joint interview with SANYO Electric Co., Ltd. (SANYO), Panasonic announced the investment of 100 billion yen in fiscal 2010. Exactly when do you plan this investment?
A Energy creation such as solar batteries will be the main target of new investment. SANYO has businesses such as air-conditioners and healthcare-related business that are expected to create synergy effects through the collaboration of both companies. After examining businesses by Collaboration Committee, which was set up on December 24th of last year, the Company will make investment in businesses that can create the biggest synergies in suitable timing. The exact timing of the investment is under discussion.
Q Please tell us the details of utilizing Panasonic's management platform for solar battery business.
A The aspects of finance and technology are under discussion in the Collaboration Committee. Regarding solar batteries, we can expand its sales channels on a large scale by utilizing existing sales channels of Panasonic group (including Panasonic Electrics Works, Ltd).
Disclaimer Regarding Forward-Looking Statements
  This Q&A includes forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934) about Panasonic and its Group companies (the Panasonic Group). To the extent that statements in this Q&A do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Panasonic Group in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the Panasonic Group's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Panasonic undertakes no obligation to publicly update any forward-looking statements after the date of this Q&A. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.
  The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularly consumer spending and corporate capital expenditures in the United States, Europe, Japan, China and other Asian countries; volatility in demand for electronic equipment and components from business and industrial customers, as well as consumers in many product and geographical markets; currency rate fluctuations, notably between the yen, the U.S. dollar, the euro, the Chinese yuan, Asian currencies and other currencies in which the Panasonic Group operates businesses, or in which assets and liabilities of the Panasonic Group are denominated; the ability of the Panasonic Group to respond to rapid technological changes and changing consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive in terms of both price and technology; the possibility of not achieving expected results on the alliances or mergers and acquisitions; the ability of the Panasonic Group to achieve its business objectives through joint ventures and other collaborative agreements with other companies; the ability of the Panasonic Group to maintain competitive strength in many product and geographical areas; the possibility of incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility that the Panasonic Group may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other countries over trade, manufacturing, labor and operations; fluctuations in market prices of securities and other assets in which the Panasonic Group has holdings or changes in valuation of long-lived assets, including property, plant and equipment and good will, and deferred tax assets and uncertain tax positions; future changes or revisions to accounting policies or accounting rules; as well as natural disasters including earthquakes and other events that may negatively impact business activities of the Panasonic Group. The factors listed above are not all-inclusive and further information is contained in Panasonic latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

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