Financial Results Note e

7/31/2019 Financial Results Note e

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1Copyright (C) 2012 Panasonic Corporation All Rights Reserved.

Fiscal 2012 Financial Results

Fiscal 2013 Forecast

May 11, 2012

Panasonic CorporationMakoto Uenoyama

Notes: 1. This is an English translation from the original presentation in Japanese.

2. In this presentation, “fiscal 2012” or “FY2012” refers to the year ended March 31, 2012.

This presentation contains consolidated financial results

for fiscal 2012, ended March 31, 2012 and the currentforecast for fiscal 2013.




2ContentsContents

1. Fiscal 2012 Financial Results

2. Fiscal 2013 Financial Forecast

First, the financial results for fiscal 2012.




This slide shows the three main points regarding the financial

results of fiscal 2012.

Firstly, both sales and profit declined significantly due mainly

to weak global economy, extreme yen appreciation and the

flooding in Thailand.

Secondly, the Company recorded its biggest ever net loss

due mainly to radical measures in unprofitable businesses

and business reform to establish a new structure.

Finally, the increase in operating profit is now gaining

momentum after hitting bottom in the third quarter results

(Oct. to Dec. 2011).

3

1. Both sales and profit declined significantly due

mainly to weak global economy, extreme yen

appreciation and the flooding in Thailand.

2. The Company recorded its biggest ever net loss due

mainly to radical measures in unprofitable

businesses and business reform to establish a new

structure.

3. The increase in operating profit is now gainingmomentum after hitting bottom in the 3Q results

(Oct. to Dec. 2011).

Summary of FY12 ResultsSummary of FY12 Results




4

Domestic

Sales-8% (-6%)

-158.52,039.31,880.8

-397.7

-413.8

-36.8

-13%

-4%

vs. FY11/

difference

(-9%)

-40.7(-2.0%)

-438.4(-23.3%)

Net

income / loss**

-48.5(-2.4%)

-462.3(-24.6%)

Pre-taxincome / loss

41.0(2.0%)

4.2(0.2%)

Operating profit

915.1799.0Overseas

1,124.21,081.8

FY11 4Q(Jan. to Mar.)

FY12 4Q(Jan. to Mar.)

*

*

FY12 4th Quarter Results (Jan. to Mar.)FY12 4th Quarter Results (Jan. to Mar.)(yen: billions)

* Real terms excluding the effects of exchange rates (unaudited）

** Net income / loss attributable to Panasonic Corporation

Consolidated group sales for the fourth quarter totaled

1,880.8 billion yen, down by 8% from the previous year. Inreal terms, excluding the effects of exchange rates,

consolidated group sales decreased by 6%.

Operating profit returned to the black, totaling 4.2 billion yen.

The increase in operating profit is now gaining momentum

from the fourth quarter onwards after making a loss in thethird quarter.

Significant losses of pre-tax and net income attributable to

Panasonic Corporation were recorded as a result of

incurring large-scale business restructuring expenses and

other factors.




5FY12 Annual ResultsFY12 Annual Results

(yen: billions)

* Real terms excluding the effects of exchange rates (unaudited）

** Net income / loss attributable to Panasonic Corporation

-780.0(-9.8%)

-820.0

(-10.3%)

30.0(0.4%)

8,000.0

Forecast onFeb. 3, 2012

(-7%)

-846.2

-991.6

-261.6

-10% (-7%)-846.5

-12%

-8%

vs. FY11/difference

8,692.77,846.2Sales

-

-

74.0(0.9%)

-772.2(-9.8%)

Netincome / loss**

178.8

(2.1%)

-812.8

(-10.4%)

Pre-tax

income / loss

305.3(3.5%)

43.7(0.6%)

Operatingprofit

4,178.43,684.2Overseas

4,514.34,162.0Domestic

FY11FY12

*

*

This slide shows annual results of fiscal 2012.

Consolidated group sales amounted to 7,846.2 billion yen,

down by 10% from the previous year. In real terms,

excluding the effects of exchange rates, consolidated

group sales decreased by 7%.

Operating profit totaled 43.7 billion yen. Pre-tax loss

totaled 812.8 billion yen while net loss attributable to

Panasonic Corporation amounted to 772.2 billion yen.

Although all profits decreased significantly from the

previous year, these figures improved on the Company’s

forecasts announced in February.




6

Sales decreases in real terms excluding

the effects of exchange rates

109 yen

79 yen

FY12

113 yenEuro

86 yenUS

dollar

FY11

FY12 Sales Analysis by Product (vs. FY11)FY12 Sales Analysis by Product (vs. FY11)

(yen: billions)

8,692.7

Automotive

Ecosolutions

Washingmachines

Flat-panelTVs

Semiconductors

Mobilephones System

equipment DSCs

Electroniccomponents

/materials

Others

FY2011 FY2012

8,053.8

Exchangerate

- 638.9(-7%)

- 846.5 (-10%)

-207.6

7,846.2

【Exchange rates】

This slide shows sales trends by major products.

Total sales decreased by 846.5 billion yen compared with the

previous year. In real terms, sales decreased by 638.9 billion

yen, excluding the exchange rate effects of 207.6 billion yen.

Approximately 70% of the overall decline was due to salesdecreases in flat-panel TVs, semiconductors and mobile

phones.




7

47%(-1%)

100%

13%

12%

10%

12%

53%

Sales proportionby region

(vs. FY11)

(+1%)--8%4,162.0Japan

-2%-10%966.5Americas

-10%-13%743.6Europe

-9%-13%931.1Asia

-8%-11%1,043.0China

-7%-10%7,846.2Total

Localcurrency

basisYen basis

vs. FY11

Sales

(yen: billions)

FY12 Global Sales by Region (vs. FY11)FY12 Global Sales by Region (vs. FY11)

Sales in Japan decreased from last year when there was a

surge in demand as a result of the government’s ‘eco-point’stimulus package. Sales in overseas markets also decreased

due mainly to the economic slowdown.

Despite stable sales in Central and South America, on yen

basis overall sales in the Americas decreased by 10% from

last year due mainly to appreciation of the yen.

In Europe, Asia and China, sales declined by more than 10%

in each region from the previous year as a result of weak

demand in digital AV products.




8

43.7(0.6%)

305.3(3.5%)

-49.5

168.0-80.0

-245.1

-55.0

Streamlining/price declines

- 261.6 (-2.9%)

FY12 Operating Profit Analysis (vs. FY11)FY12 Operating Profit Analysis (vs. FY11)

(yen: billions)

(%: vs. sales)

Exchangerates

Fixed cost& others

Sales decrease(real terms)

FY2011 FY2012

Materials costincrease

Impact of disasters

-62.9-135.5The flooding inThailand

-132.9

-70.0

Operatingprofit

-275.5Total

-140.0The Great EastJapan Earthquake

Sales

This chart shows the operating profit analysis compared

with the previous year.

Operating profit was significantly affected by negative

factors such as appreciation of the yen, price declines and

rising material costs as well as decreases in sales. However,

the Company secured an operating profit of 43.7 billion yen

due mainly to reduction in fixed costs.




9

- 730.0- 856.5Non-operating income / loss

- 647.5- 746.7Other * (impairment losses for fixedassets and goodwill etc.)

- 846.2- 772.2Net income / loss attributable to PanasonicCorporation **

+55.5- 43.9Less net income / loss attributable tononcontrolling interests

- 901.7- 816.1Net income / loss **

- 3.36.5Equity in earnings of associated companies

+93.29.8Provision for income taxes **

- 991.6- 812.8Pre-tax income / loss

- 83.3- 101.0Early retirement charges *

+0.8- 8.8Financial income / loss

- 261.643.7Operating profit

vs. FY11FY12

(yen: billions)

FY12 Pre-tax and Net Income AnalysisFY12 Pre-tax and Net Income Analysis

* Total business restructuring expenses: -767.1 billion yen** The impact of changes in Japanese corporate tax rates: -25.5 billion yen

Next, pre-tax and net income analysis.

The non-operating loss significantly worsened compared

with last year. This was mainly due to incurring business

restructuring expenses of 767.1 billion yen including early

retirement charges and, impairment losses for fixed assets

and goodwill.

As a result, net loss attributable to Panasonic Corporation

amounted to 772.2 billion yen including the impact of

changes in Japanese corporate tax rates.




10

334.3

17.2

50.0

267.1

Fixed asset-related

147.8

116.9

16.5

14.4

Earlyretirement,

integration offacilities etc.

285.0

249.6

27.0

8.4

Impairmentloss for

goodwill etc.

289.9Flat-panel TV

Business

93.5Semiconductor

Business

383.7Others

Details Total

767.1Total

FY12 Breakdown of Business RestructuringFY12 Breakdown of Business Restructuring

(yen: billions)

This slide shows the breakdown in the business

restructuring of 767.1 billion yen for fiscal 2012.

The Company implemented unprecedented large-scale

business restructuring initiatives in order to take radical

measures in unprofitable businesses and establish new

structure. These included downsizing of the workforce,

restructuring offices and manufacturing sites as well asimpairment losses for fixed assets and goodwill.




11

- 8 9. 0 919.3

(38 days)- 6 6 .1

896.4(37 days)

(38 days)

830.3

Mar. 2011 Mar. 2012 Mar. 2012original forecast

InventoriesInventories

(yen: billions)

Finished Goods

Raw materials & Work-in-process

At the end of March 2012, total inventories were 830.3 billion

yen, a decrease of 66.1 billion yen from March 2011. This wasdue mainly to the Company’s effort to reduce inventories in

flat-panel TVs. However, turnover days increased by 1 day as

a result of sales decline.

Compared with the Company’s original forecast, inventories

reduced by 89.0 billion yen, securing the same level inturnover days.




12

300.0 - 5. 2294.8

403.8- 1 0 9 . 0

FY11 FY12 FY12previous forecast

as of Feb. 3)

Capital InvestmentCapital Investment

(yen: billions)

Capital investment totaled 294.8 billion yen, a decrease of

109.0 billion yen from the previous year. This was duemainly to decreases in investment in flat-panel TVs and

energy-related products.

The Company also reduced its capital investment by 5.2

billion yen compared with the previous forecast in February.




13Change of Segment Structure following Business RestructuringChange of Segment Structure following Business Restructuring

Until 3Q FY12

S A N Y O

O t h er

C om p on en t s

an d D evi c e s

P E W an d

P an aH om e

H om e

A p pl i an c e s

D i gi t al A V C

N e t w or k s

From 4Q FY12

A u t om o t i v e S y s t em s

E c

o S ol u t i on s

S y s t em s &

C om

m uni c a t i on s

A p pl i an c e s

A

V C N e t w or k s

E n er g y

I n d

u s t r i al D ev i c e s

Other

H e al t h c ar e

C om p an y

M an uf a c t ur i n g

S o

l u t i on s C om p an y

O t h er s

Next, changes in segment structure.

The Company aims to improve its transparency based on

new corporate structure which was established on January

1, 2012.

The Company also discloses the results of Healthcare

Company and Manufacturing Solutions Company which

are included in the Other segment.




14FY12 Results by New SegmentFY12 Results by New Segment

-17.84.9+7%653.2Automotive Systems

-30.317.3-10%840.8Systems &Communications

-274.280.9-10%10,167.9Subtotal

+12.6-37.2--2,321.7Corporate andeliminations

Operating

profit/lossSales Differencevs. FY11

-37.323.6-18%1,880.9Other

-86.5-16.6-16%1,404.6Industrial Devices

+1.058.9-0%1,525.8Eco Solutions

-2.581.5+3%1,534.2Appliances

-95.1-67.8-21%1,713.5AVC Networks

-5.7-20.9-3%614.9Energy

43.7 -261.67,846.2 -10%Consolidated Total

(yen: billions)

This slide shows annual results of fiscal 2012 by new

segment.

Compared with Fiscal 2011, sales increased in the

Appliances and the Automotive Systems segments, while

operating profit increased in the Eco Solutions segment. In

other segments, both sales and operating profit decreased.




15ContentsContents

1. Fiscal 2012 Financial Results

2. Fiscal 2013 Financial Forecast

Next, financial forecast for fiscal 2013.




16

1. Sales are expected to increase both in Japan and

overseas led by strong sales growth in Asia and

China.

3. The Company aims to achieve profit increases in

all segments.

2. Profit is expected to improve significantly as a

result of business restructuring and increases in

sales.

Summary of FY13 ForecastsSummary of FY13 Forecasts

This slide shows the three main points regarding the

financial forecasts of fiscal 2013.

Firstly, double-digit sales growth is expected in Asia and

China on local currency basis, and sales in both Japan

and overseas are expected to increase.

Secondly, profit is expected to improve significantly as a

result of business restructuring and increases in sales.

Finally, the Company aims to achieve profit increases in all

segments.




17

+3% (+5%)+253.87,846.28,100.0Sales

+822.2

+972.8

595% +216.3

+5%

+2%

vs. FY12/ difference

(+7%)

-772.2(-9.8%)

50.0(0.6%)

Netincome / loss**

-812.8(-10.4%)

160.0(2.0%)

Pre-taxincome / loss

43.7(0.6%)

260.0(3.2%)

Operatingprofit

3,684.23,850.0Overseas

4,162.04,250.0Domestic

FY12FY13

*

*

FY13 Full Year ForecastsFY13 Full Year Forecasts(yen: billions)

Exchange rates** Net income / loss attributable to Panasonic Corporation

* Real terms excluding the effects of exchange rates

1H / 2HFull year

105 yen / 100 yen80 yen / 75yen

109 yen103 yenEuro

79 yen78 yenUS dollar

FY12FY13

Consolidated group sales for fiscal 2013 is forecast to be

8,100.0 billion yen, an increase of 253.8 billion yen or 3% from

fiscal 2012. In real terms, excluding the effects of exchange

rates, consolidated group sales is expected to increase by 5%.

Operating profit is forecast to be 260.0 billion yen, while

operating profit to sales ratio is expected to improve to 3.2%.

Pre-tax income and net income attributable to Panasonic

Corporation are expected to improve significantly from fiscal2012, following the end of the large-scale business

restructuring.

The US dollar exchange rate is projected to be 80 yen in the

first half, 75 yen in the second half and 78 yen for the full year.

The Euro rate is projected to be 105 yen in the first half, 100

yen in the second half and 103 yen for the full year.




18FY13 Global Sales by Region (vs. FY12)FY13 Global Sales by Region (vs. FY12)

48%+1%

100%

14%

13%

9%

12%

52%

Sales proportionby region

(vs. FY12)

-1%-+2%4,250.0Japan

+3%+0%970.0Americas

+2%-2%730.0Europe

+11%+7%1,000.0Asia

+11%+10%1,150.0China

+5%+3%8,100.0Total

Localcurrency

basisYen basis

vs. FY12Sales

(yen: billions)

In sales forecast by region, sales are expected to grow

especially in Asia and China. Sales in Japan and Americasare also expected to be stable.

In Europe, sales are expected to recover from the

previous year on local currency basis.




19

Restructuringbenefit

96.3

FY13 Operating Profit Analysis (vs. FY12)FY13 Operating Profit Analysis (vs. FY12)

43.7(0.6%)

Exchangerates

-25.0

FY12Results +216.3 (+2.6%)

FY13Forecast

Materials costincrease

-42.0

Salesincrease

(real terms)

120.0

Streamlining/Price decline

67.0

130.0

Fixed costincrease

due to salesincrease etc.

-33.7

260.0(3.2%)

(yen: billions)(%: vs. sales)

This slide shows the forecast of operating profit analysis

for fiscal 2013 compared to the previous year.

The Company regards appreciation of the yen and

increases in material costs as continuing risk factors.

However, it strives to improve its profitability substantially

through sales growth. Streamlining that exceeds the price

declines and restructuring benefits are also expected tocontribute to an overall operating profit increase.




20

0

1,000

2,000

FY11 FY12 FY13 forecast

-5.0

0.0

5.0

10.0

Sales: 1,730.0 (vs. FY12: +1%)

Operating profit: 60.0 (3.5%)

1.3%

-4.0%

3.5%

0

1,000

2,000


-5.0

0.0

5.0

10.0

5.7% 5.3%6.1%

FY13 Forecasts by New Segment - 1FY13 Forecasts by New Segment - 1

AVC Networks Appliances

(Sales billions yen) (Operating profit: %) (yen: billions)

Sales: 1,630.0 (vs. FY12: +6%)


Next, annual forecasts by segment. First, segments of the

Consumer Business Field.

Sales in AVC Networks are expected to increase by 1%

from last year as sales in digital interchangeable lens

cameras and PCs are expected to be favorable. Operating

profit is forecast to return to profitability due mainly to a

significant improvement in the flat-panel TVs business.

Sales in Appliances are expected to grow by 6% with

global business expansion of washing machines,

refrigerators, and air conditioners including large-sized

industrial ones. Operating profit is forecast to be 100.0

billion yen.




21

0

1,000

2,000


-5.0

0.0

5.0

10.0

Systems & Communications

0

1,000

2,000


-5.0

0.0

5.0

Eco Solutions

3.8% 3.9% 3.8%5.1%

2.1% 2.7%


(%) (%)(yen: billions) (yen: billions)

Sales: 900.0 (vs. FY12: +7%)


Sales: 1,600.0 (vs. FY12: +5%)


Next, segments in the Solutions Business Field.

Sales in Systems & Communications are expected to

increase by 7% from last year due mainly to strong sales

in smart phones and network cameras in the securities

field. Operating profit is also expected to improve due

mainly to the expansion of the solutions business such as

securities and networks.

Sales in Eco Solutions are expected to increase by 5%

from last year due mainly to sales increases in

environmental and energy-related products including LED

lightings and solar batteries. Operating profit is forecast to

increase due mainly to sales increases and streamlining

despite a price decline in LED lightings and rising material

costs.




22

0

1,000

2,000


-5.0

0.0

5.0

10.0

Automotive Systems

0

1,000

2,000


-5.0

0.0

5.0

Industrial Devices

4.2%

-1.2%

2.8%3.7%

0.8%

2.5%



Sales: 720.0 (vs. FY12: +10%)


Sales: 1,420.0 (vs. FY12: +1%)


Next, the segments in the Industrial Devices Business

Field.

Sales in Automotive Systems are expected to show

double-digit growth from last year due mainly to a sales

increase in display audios as its demand expands, leading

to an increase in overall profit.

Sales in Industrial Devices are expected to grow by 1%

from last year due mainly to sales increases in electronic

components for smart phones and automotives. Operating

profit is expected to return to profitability, benefiting from

business restructuring.




23

0

1,000

2,000


-5.0

0.0

5.0

10.0

0

1,000

2,000


-5.0

0.0

5.0

10.0

Other

2.6%1.3% 1.4%

Energy

-2.4%

-3.4%

0.5%



Sales: 660.0 (vs. FY12: +7%)


Sales: 1,660.0 (vs. FY12: -12%)


Sales in Energy are expected to increase by 7% from last

year due mainly to strong sales in lithium-ion batteries forcars and consumer use. Operating profit is forecast to turn

into the black as a result of continuing profit in the solar

business, improved profitability in the overall lithium-ion

battery business and other factors.

Sales in Other are expected to decline by 12% from lastyear. However, operating profit is expected to increase,

owing to stable profitability in FA equipment and health-

care products.




25

The Company strives to achieve a v-shaped recovery in

fiscal 2013.

Thank you for your continued support.



26Disclaimer Regarding Forward-Looking Statements

This presentation 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 presentation 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

presentation. 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 U.S. 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, 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 possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; 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 including the business reorganization after the acquisition of all shares of Panasonic Electric Works Co., Ltd. and SANYO Electric Co., Ltd.; 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 goodwill, deferred tax assets and uncertain tax positions; future changes or revisions to accounting policies or accounting rules; natural disasters including earthquakes, prevalence of infectious diseases throughout the world and other events that may negatively impact business activities of the Panasonic Group ；as well as direct or indirect adverse effects of the Great East

Japan Earthquake on the Panasonic Group in terms of, among others, component procurement, manufacturing, distribution,economic conditions in Japan including consumer spending and sales activities overseas, and direct or indirect adverse effects of the flooding in Thailand on the Panasonic Group in terms of, among others, component procurement and manufacturing. The factors listed above are not all-inclusive and further information is contained in Panasonic‘s latest annual reports, Form 20-F, and any other reports and documents which are on file with the U.S. Securities and Exchange Commission.

In order to be consistent with generally accepted financial reporting practices in Japan, operating profit (loss) is presented in accordance with generally accepted accounting principles in Japan. The company believes that this is useful to investors in comparing the company's financial results with those of other Japanese companies. Under United States generally accepted accounting principles, expenses associated with the implementation of early retirement programs at certain domestic and overseas companies, and impairment losses on long-lived assets are usually included as part of operating profit (loss) in the statement of income.

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