FOR IMMEDIATE RELEASE
Media Contacts: Yasuhiro Fukagawa, International PR, Tokyo
(Tel: 03-3578-1237, Fax: 03-5472-7608)
Matsushita Announces
Reorganization of Domestic
Systems Sales Companies
Matsushita Electric Industrial Co., Ltd. (MEI [NYSE and PCX symbol: MC])
announced that its Board of Directors today resolved to integrate its 14
domestic systems sales subsidiaries into two companies, which will be responsible
for domestic systems sales business and fixed-line communications business,
respectively. This reorganization, scheduled to take effect on April 1,
2003, is in line with MEI's groupwide business and organizational restructuring
currently underway, aimed at integrating R&D, manufacturing and sales
by each business domain, such as the system solutions business domain and
the fixed-line communications business domain in this case. As a result
of this integration, 12 domestic systems sales subsidiaries will be dissolved,
subject to approval by shareholders of the relevant companies.
The details of the reorganization are as follows:
On April 1, 2003, the AVC business of 13 system sales subsidiaries
located throughout Japan will be transferred to Tokyo Matsushita System
Co., Ltd. (Tokyo Matsushita System), also a subsidiary of MEI. Upon such
transfer, Tokyo Matsushita System will be reorganized under a new name "Panasonic
System Solutions Marketing Co., Ltd." (tentative name), as a new sales company of
Panasonic System Solutions Company*, an internal divisional company of MEI.
Panasonic System Solutions Marketing will be responsible mainly for sales of AVC systems,
and related services and engineering.
*
Panasonic System Solutions Company will be established
as a new internal divisional company (domain company) of MEI on January
1, 2003, as previously announced on October 30, 2002 in the press
release "Matsushita Announces Specifics of New Group Units."
Also on April 1, 2003, the fixed-line communications business
of 13 domestic systems sales subsidiaries will be transferred to Kanto Matsushita
System Co., Ltd. (Kanto Matsushita System), a subsidiary of MEI. At the
time of the transfer, MEI will sell all shares of Kanto Matsushita System
to Panasonic Communications Co., Ltd.*, also a subsidiary of MEI. At the
same time, Kanto Matsushita System will be reorganized under a new name
"Panasonic CS Co., Ltd." (tentative name), as a new sales company
of Panasonic Communications Co., Ltd. Panasonic CS will be responsible mainly
for sales of fixed-line communications equipment, and related services and
engineering.
*
Panasonic Communications Co., Ltd. will be established
as a new subsidiary (domain company) of MEI on January 1, 2003, as
previously announced on October 30, 2002 in the press release "Matsushita
Announces Specifics of New Group Units."
Following the aforementioned business transfers, closing/liquidation
procedures for 12 of the current domestic systems sales subsidiaries will
be implemented, subject to approval at each company's general meeting of
shareholders, to be held in or after May 2003.
These business transfers and closings will have no material
adverse effect on MEI's consolidated, or parent-alone financial position
or performance.
The specifics of the two new companies to be formed as a result
of the business transfers are as follows:
Panasonic System Solutions Marketing Co., Ltd. (tentative name)
Principal Office
Minato-ku, Tokyo, Japan
Name of Original Organization
Tokyo Matsushita System Co., Ltd.
Date of Incorporation (planned)
April 1, 2003
Capital Stock (planned)
65 million yen
Principal Lines of Business
Sale of AVC equipment and merchandise, and related services
and engineering
Financial Closing Date
March 31
Panasonic CS Co., Ltd. (tentative name)
Principal Office
Meguro-ku, Tokyo, Japan
Name of Original Organization
Kanto Matsushita System Co., Ltd.
Date of Incorporation (planned)
April 1, 2003
Capital Stock (planned)
30 million yen
Principal Lines of Business
Sale of fixed-line communications equipment and merchandise, and
related services and engineering
Financial Closing Date
March 31
<Reference>
Information about the 12 companies scheduled to be closed
1.
Hokkaido Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Hokkaido Matsushita System Co., Ltd.
Representative
Ikuo Nishihara, President
Principal Office
Sapporo, Japan
Date of Incorporation
July 21, 1959
Principal Lines of Business
Sales of AVC and fixed-line communications equipment and merchandise,
and related services and engineering
Capital Stock
40 million yen
Financial Closing Date
March 31
No. of Employees
114
Shares Issued
80,000
Shareholders' Equity
-219 million yen
Total Assets
1,689 million yen
Major Shareholders and Shareholdings
MEI 83.80%
Financial results for the most recent
three fiscal years (in millions of yen, except per share amounts; amounts
less than one million yen are truncated, same hereinafter)
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
9,630
7,920
7,197
Recurring Profit (Loss)
58
75
(194)
Net Income (Loss)
52
26
(241)
Net Income (Loss) per Share (in yen)
653
332
(3,023)
Annual Dividends per Share (in yen)
0
0
0
Shareholders' Equity per Share (in yen)
- 5,192
508
- 2,515
2.
Tohoku Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Tohoku Matsushita System Co., Ltd.
Representative
Yoshio Takahashi, President
Principal Office
Sendai, Japan
Date of Incorporation
November 1, 1994
Principal Lines of Business
Sales of AVC and fixed-line communications equipment and merchandise,
and related services and engineering
Capital Stock
80 million yen
Financial Closing Date
March 31
No. of Employees
173
Shares Issued
3,000
Shareholders' Equity
48 million yen
Total Assets
2,428 million yen
Major Shareholders and Shareholdings
MEI 100%
Financial results for the most recent
three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
6,333
6,221
6,533
Recurring Profit
50
12
65
Net Income (Loss)
5
(7)
(73)
Net Income (Loss) per Share (in yen)
5,601
(7,034)
(73,703)
Annual Dividends per Share (in yen)
0
0
0
Shareholders' Equity per Share (in yen)
132,572
182,367
108,663
3.
Niigata Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Niigata Matsushita System Co., Ltd.
Representative
Densaku Ueguri, President
Principal Office
Niigata, Japan
Date of Incorporation
February 21, 1981
Principal Lines of Business
Sales of AVC and fixed-line communications equipment and merchandise,
and related services and engineering
Capital Stock
20 million yen
Financial Closing Date
March 31
No. of Employees
64
Shares Issued
40,000
Shareholders' Equity
379 million yen
Total Assets
1,249 million yen
Major Shareholders and Shareholdings
MEI 51.20%
Financial results for the most recent
three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
5,069
5,952
5,384
Recurring Profit
22
81
98
Net Income (Loss)
27
32
(53)
Net Income (Loss) per Share (in yen)
692
822
(1,331)
Annual Dividends per Share (in yen)
50
50
25
Shareholders' Equity per Share (in yen)
5,901
9,150
7,793
4.
Kanagawa Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Kanagawa Matsushita System Co., Ltd.
Representative
Kiyoshi Hiratsuka, President
Principal Office
Yokohama, Japan
Date of Incorporation
December 1, 1995
Principal Lines of Business
Sales of AVC and fixed-line communications equipment and merchandise,
and related services and engineering
Capital Stock
40 million yen
Financial Closing Date
March 31
No. of Employees
94
Shares Issued
800
Shareholders' Equity
197 million yen
Total Assets
1,255 million yen
Major Shareholders and Shareholdings
MEI 100%
Financial results for the most recent
three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
5,829
6,646
6,920
Recurring Profit
0
38
34
Net Income (Loss)
(8)
19
16
Net Income (Loss) per Share (in yen)
(10,278)
24,522
20,938
Annual Dividends per Share (in yen)
0
0
0
Shareholders' Equity per Share (in yen)
183,959
228,012
248,950
5.
Chubu Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Chubu Matsushita System Co., Ltd.
Representative
Yasuo Matsubara, President
Principal Office
Nagoya, Japan
Date of Incorporation
October 1, 1989
Principal Lines of Business
Sales of AVC and fixed-line communications equipment
and merchandise, and related services and engineering
Capital Stock
130 million yen
Financial Closing Date
March 31
No. of Employees
271
Shares Issued
260,000
Shareholders' Equity
642 million yen
Total Assets
3,700 million yen
Major Shareholders and Shareholdings
MEI 69.80%
Financial results for the most recent
three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
20,353
19,414
12,896
Recurring Profit
104
187
55
Net Income (Loss)
68
103
(128)
Net Income (Loss) per Share (in yen)
264
398
(495)
Annual Dividends per Share (in yen)
50
50
0
Shareholders' Equity per Share (in yen)
2,142
3,134
2,639
6.
Kansai Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Kansai Matsushita System Co., Ltd.
Representative
Teruaki Nakayama, President
Principal Office
Osaka, Japan
Date of Incorporation
October 1, 1989
Principal Lines of Business
Sales of AVC and fixed-line communications equipment
and merchandise, and related services and engineering
Capital Stock
100 million yen
Financial Closing Date
March 31
No. of Employees
559
Shares Issued
200,000
Shareholders' Equity
2,500 million yen
Total Assets
10,527 million yen
Major Shareholders and Shareholdings
MEI 56.40%
Financial results for the most recent
three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
34,919
38,629
34,436
Recurring Profit (Loss)
106
257
(236)
Net Income (Loss)
45
132
(664)
Net Income (Loss) per Share (in yen)
226
664
(3,322)
Annual Dividends per Share (in yen)
75
75
50
Shareholders' Equity per Share (in yen)
12,539
17,319
13,947
7.
Chugoku Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Chugoku Matsushita System Co., Ltd.
Representative
Kazushige Hirade, President
Principal Office
Hiroshima, Japan
Date of Incorporation
April 1, 1990
Principal Lines of Business
Sales of AVC and fixed-line communications equipment
and merchandise, and related services and engineering
Capital Stock
100 million yen
Financial Closing Date
March 31
No. of Employees
148
Shares Issued
200,000
Shareholders' Equity
133 million yen
Total Assets
1,545 million yen
Major Shareholders and Shareholdings
MEI 78.50%
Financial results for the most recent
three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
11,246
9,887
7,951
Recurring Profit (Loss)
71
15
(72)
Net Income (Loss)
40
1
(225)
Net Income (Loss) per Share (in yen)
202
6
(1,129)
Annual Dividends per Share (in yen)
0
0
0
Shareholders' Equity per Share (in yen)
1,987
2,626
1,496
8.
Shikoku Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Shikoku Matsushita System Co., Ltd.
Representative
Hajime Furuno, President
Principal Office
Takamatsu, Japan
Date of Incorporation
January 22, 1973
Principal Lines of Business
Sales of AVC and fixed-line communications equipment
and merchandise, and related services and engineering
Capital Stock
50 million yen
Financial Closing Date
March 31
No. of Employees
86
Shares Issued
100,000
Shareholders' Equity
-238 million yen
Total Assets
1,372 million yen
Major Shareholders and Shareholdings
MEI 100%
Financial results for the most recent three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
7,905
7,686
6,667
Recurring Profit (Loss)
41
73
(26)
Net Income (Loss)
0
32
(300)
Net Income (Loss) per Share (in yen)
0
321
(3,005)
Annual Dividends per Share (in yen)
0
0
0
Shareholders' Equity per Share (in yen)
- 2,250
692
- 2,312
9.
Kyushu Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Kyushu Matsushita System Co., Ltd
Representative
Hiroyuki Kazao, President
Principal Office
Fukuoka, Japan
Date of Incorporation
June 1, 1989
Principal Lines of Business
Sales of AVC and fixed-line communications equipment
and merchandise, and related services and engineering
Capital Stock
100 million yen
Financial Closing Date
March 31
No. of Employees
333
Shares Issued
200,000
Shareholders' Equity
-663 million yen
Total Assets
4,149 million yen
Major Shareholders and Shareholdings
MEI 81.70%
Financial results for the most recent three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
19,488
17,828
15,896
Recurring Profit (Loss)
378
11
(411)
Net Income (Loss)
305
(107)
(674)
Net Income (Loss) per Share (in yen)
1,527
(537)
(3,373)
Annual Dividends per Share (in yen)
0
0
0
Shareholders' Equity per Share (in yen)
608
1,153
- 2,220
10.
Shizuoka Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Shizuoka Matsushita System Co., Ltd.
Representative
Takatoshi Hanzaki, President
Principal Office
Shizuoka, Japan
Date of Incorporation
April 1, 1995
Principal Lines of Business
Sales of AVC and fixed-line communications equipment
and merchandise, and related services and engineering
Capital Stock
30 million yen
Financial Closing Date
March 31
No. of Employees
105
Shares Issued
600
Shareholders' Equity
228 million yen
Total Assets
1,224 million yen
Major Shareholders and Shareholdings
Chubu Matsushita System Co., Ltd. 100%
Financial results for the most recent three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
10,857
10,007
10,074
Recurring Profit
65
80
75
Net Income (Loss)
18
42
(85)
Net Income (Loss) per Share (in yen)
30,490
71,643
(142,064)
Annual Dividends per Share (in yen)
5,000
5,000
0
Shareholders' Equity per Share (in yen)
291,621
451,537
309,472
11.
Nagano Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Nagano Matsushita System Co., Ltd.
Representative
Katsutaro Tsuji, President
Principal Office
Nagano, Japan
Date of Incorporation
April 1, 1995
Principal Lines of Business
Sales of AVC and fixed-line communications equipment
and merchandise, and related services and engineering
Capital Stock
30 million yen
Financial Closing Date
March 31
No. of Employees
51
Shares Issued
600
Shareholders' Equity
37 million yen
Total Assets
507 million yen
Major Shareholders and Shareholdings
Chubu Matsushita System Co., Ltd. 100%
Financial results for the most recent three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
3,853
4,475
3,828
Recurring Profit (Loss)
1
27
(49)
Net Income (Loss)
(3)
7
(99)
Net Income (Loss) per Share (in yen)
(5,508)
13,144
(165,485)
Annual Dividends per Share (in yen)
0
0
0
Shareholders' Equity per Share (in yen)
74,286
124,427
- 41,057
12.
Hokuriku Matsushita System Co., Ltd. (as of September
30, 2002)
Trade Name
Hokuriku Matsushita System Co., Ltd.
Representative
Nobuyuki Takashima, President
Principal Office
Kanazawa, Japan
Date of Incorporation
April 1, 1995
Principal Lines of Business
Sales of AVC and fixed-line communications equipment
and merchandise, and related services and engineering
Capital Stock
30 million yen
Financial Closing Date
March 31
No. of Employees
116
Shares Issued
600
Shareholders' Equity
-24 million yen
Total Assets
1,685 million yen
Major Shareholders and Shareholdings
Chubu Matsushita System Co., Ltd. 100%
Financial results for the most recent three fiscal years
Fiscal Year ended
2000/3
2001/3
2002/3
Net Sales
9,956
9,359
7,800
Recurring Profit (Loss)
53
(33)
1
Net Income (Loss)
13
(37)
(125)
Net Income (Loss) per Share (in yen)
22,532
(62,330)
(208,875)
Annual Dividends per Share (in yen)
5,000
0
0
Shareholders' Equity per Share (in yen)
188,807
305,492
96,616
Disclaimer Regarding Forward-Looking Statements
This press release 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 Matsushita and its group companies
(the Matsushita Group). To the extent that statements in this press release
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 Matsushita Group in light of the information currently
available to them, and involve known and unknown risks, uncertainties and
other factors. Such risks, uncertainties and other factors may cause the
Matsushita 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. Matsushita undertakes no obligation to publicly update any forward-looking
statements after the date of this press release. Investors are advised to
consult any further disclosures by Matsushita in its subsequent filings
with the U.S. Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934 and its other filings.
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 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, Asian currencies and other currencies
in which the Matsushita Group operates businesses, or in which assets and
liabilities of the Matsushita Group are denominated; the ability of the
Matsushita 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 ability of the Matsushita Group to realize expected benefits
of various restructuring activities in its business and organization, including
the business divisions/combinations with subsidiaries currently in progress;
the ability of the Matsushita Group to achieve its business objectives through
joint ventures and other collaborative agreements with other companies;
the ability of the Matsushita Group to maintain competitive strength in
many product and geographical areas; any changes in the Matsushita Group's
financial and operational position or business environment due to its business
restructuring; current and potential, direct and indirect trade restrictions
imposed by other countries; and fluctuations in market prices of securities
and other assets in which the Matsushita Group has holdings, as well as
future changes or revisions to accounting policies or accounting rules.
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