Panasonic 2001 Annual Report Download

Download and view the complete annual report

Please find the complete 2001 Panasonic annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 62

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62

Annual Report 2 0 0 1
For the year ended March 31, 200 1
Listening to You, Building Tomorrow Matsushita Electric

Table of contents

  • Page 1
    Annual Report 2 0 0 1 For the year ended March 31, 2001 Listening to You, Building Tomorrow Matsushita Electric

  • Page 2
    ... 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 Company has holdings. 60 Matsushita Electric Industrial 2001

  • Page 3
    ... on the Tokyo Foreign Exchange Market on March 30, 2001. 3.Beginning in fiscal 2001, the Company adopted SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities," and accordingly, prior year figures have been restated to reflect this change. 4.Fiscal 1999 and 1998 net income...

  • Page 4
    To Our Stakeholders Matsushita Electric Industrial Co., Ltd. bases its business activities on its fundamental management philosophy of contributing to society as a public entity. We are confident that enhancing our contribution to society will ultimately reward us with higher profits, and will seek...

  • Page 5
    ... result, Matsushita's five key businesses now play an essential role in the operations of the Company as a whole. Matsushita's new mid-term plan,Value Creation 21, implemented April 2001, was designed to take full advantage of the opportunities created by the evolving digital networking society. The...

  • Page 6
    ... management control. To adapt to changing market needs and maximize growth, Matsushita has reclassified its business segments and implemented a number of related strategies. Particularly in the areas of AV equipment and information and communications equipment, where broadcasting and communications...

  • Page 7
    ... as forming global partnerships, while also working on further technological innovations in the Secure Digital (SD) Memory Card, DVD and hard disk drive (HDD) businesses. At the forefront of these efforts, the Company is accelerating new product development and applications for data storage devices...

  • Page 8
    .... By product category, overseas growth is expected to be led by sales of digital AV equipment, mobile communications equipment, including cellular phones, and components and devices. By region, the Company will strengthen sales in growth markets such as Asia (excluding Japan) and Eastern Europe. To...

  • Page 9
    ... product divisions (or Business Units) within AVC Company, Home Appliance & Housing Electronics Company and certain other divisional companies. The new manufacturing centers will provide manufacturing services commonly used by various product divisions. Through Matsushita's proprietary manufacturing...

  • Page 10
    ...of Manufacturing Units In Japan, the Company consolidated TV manufacturing in three locations into one single facility located in Utsunomiya. Overseas, as part of its strategy to achieve a more efficient global manufacturing structure, Matsushita shifted the production of air-conditioner compressors...

  • Page 11
    ... m A p r il 1 , 2 0 0 1 N e tw o r k s C o lo r T V s, L C D an d P D P T V s, v id e o c asse ...vac u u m c le an e r s, e le c t r ic iro n s, m ic ro w ave o ve n s, c o o k in g ap p lian c e s, d ish w ash e r s, re fr ig e r at o r s, ro o m air c o n d it io n e r s, e le c t r ic fan s, air...

  • Page 12
    ... home networking, with digital AV equipment at its center, and mobile networking products, led by cellular phones. In the age of high-speed, high-capacity broadband communications, the conventional TV will evolve into a multipurpose TV , offering a wide range of functions through easy-to-use remote...

  • Page 13
    ... the mid-term, sales of AV equipment increased, driven by a global rise in sales of TVs and DVD players. Sales of information and communications equipment also surpassed the previous year, led by cellular phones and car AV equipment. Digital Broadcasting Systems Matsushita's policy in this business...

  • Page 14
    ... services linking cellular phones with convenience stores, jointly with Lawson, Inc., Mitsubishi Corporation and NTT DoCoMo. Overseas, based on mid-term projections of expanded global demand for mobile communications equipment, Matsushita plans to expand cellular phone production in Eastern Europe...

  • Page 15
    ... at the same time promoting digital products in regional markets. As part of our structural reforms to accelerate this strategy, the Company is relocating conventional TV and VCR production to Asia (excluding Japan) and Eastern Europe to optimize its global production allocation and strengthen cost...

  • Page 16
    ..., Matsushita established the Home Appliance R &D Center in April 2000 in Malaysia to develop products tailored specifically to the expanding Southeast Asian market. Precise room temperature control is made possible by the triple-panel design of this air conditioner. Centrifugal force technology...

  • Page 17
    ... the Corporate Environment Solutions Business Division and the Healthcare & Medical Business Development Center. Matsushita's eHII House, opened January 2 0 0 1 , showcases homes for the near future that will link household equipment with external networks via PCs and cellular phones. The...

  • Page 18
    ...welding machines, power distribution systems and industrial-use ventilation and air-conditioning systems. By providing customers with tailored value-added services, the Company seeks to enhance profitability and growth. O n April 1, 2001, Matsushita established the Factory Automation Company, a new...

  • Page 19
    ... management of power consumption. Industrial-Use Ventilation and Air-Conditioning Systems Matsushita Welding Systems Co., Ltd. commenced operations in April 2000, integrating all development, manufacturing, sales and services in the area of welding machines and robots, thereby unifying the business...

  • Page 20
    ... profitability, since in the digital networking age, superior components and devices differentiate our products and systems from those of other companies, generating higher added value. O ur general components divisions are developing mid-term policies to concentrate managerial resources primarily...

  • Page 21
    ...overseas development centers. In fiscal 2001, sales of general components advanced, led mainly by components and devices for mobile communications equipment. In particular, new high-frequency components for cellular phones were highly acclaimed. In networkable consumer products, Matsushita developed...

  • Page 22
    ... also marked a number of technological breakthroughs at Matsushita, including the development of system LSI chip sets for Broadcast Satellite (BS) digital broadcast TV tuners and the world's first single-chip MPEG-4 multi-codec system LSI, a technology that enables a single cellular phone LCD panel...

  • Page 23
    ... information and communications equipment, particularly cellular phones, in the mid- and long-term, the Company plans to double its monthly production capacity of lithium-ion batteries to 20 million units by the spring of 2002. Polymer electrolyte fuel cells for clean, efficient power Matsushita...

  • Page 24
    ... but also energy creation through optimum control of household solar power and cogeneration systems. A household cogeneration system currently under in-home testing Eco Mate conserves energy through a new networking technology using standard power lines. 22 Matsushita Electric Industrial 2001

  • Page 25
    ... the recycling of major home appliances was enacted in April 2 0 0 1 . The new legislation requires consumers, retailers and manufacturers to share the responsibility of recycling used TVs, refrigerators, washing machines and air conditioners. Well in advance of the new law, Matsushita began...

  • Page 26
    ... instance, Panasonic Consumer Electronics Company (PCEC) received the Corporate Philanthropist of the Year award from the Community Foundation of New Jersey for outreach programs in each of the four categories: Education, Health, Social Welfare and the Arts. aid, Matsushita offers its technologies...

  • Page 27
    ... Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Independent Auditors' R eport Matsushita Electric Industrial 2001 25

  • Page 28
    Five-Year Summary Years ended March 31 Millions of yen, except per share information Thousands of U.S. dollars, except per share information 2001 For the year 2000 1999 1998 1997 2001 Net sales ...O perating profit ...Income before income taxes . Net income ... ... ... ... ... ... . ¥7,681...

  • Page 29
    ... of DVD-Audio players, DVD video recorders and a series of products centered on the SD Memory Card, a new ultracompact data storage device now supported by more than 200 corporate members of the SD Association worldwide. Matsushita is working on the expansion of its networkable AV equipment business...

  • Page 30
    ... cellular phone services. Among other communications equipment, a color facsimile machine, compatible with the SD Memory Card, was also well received by consumers in Japan. Sales by Product Category Millions of yen Thousands of U.S. dollars 2001 2000 1999 1998 1997 2001 Consumer products...

  • Page 31
    ... of new LSIs and other devices for digital AV equipment, such as for BS digital broadcast TV tuners, as well as for cellular phones, DVD-related equipment and LCD panels grew steadily. Meanwhile, a joint development project with Mitsubishi Electric in cutting-edge system LSI processing technologies...

  • Page 32
    ... in April 2001 of a new home appliance recycling law in Japan had a temporary positive effect on sales of Consumer products. The new legislation requires consumers, retailers and manufacturers to share the responsibility of recycling used TVs, refrigerators, washing machines and air conditioners...

  • Page 33
    ... 2001, Matsushita increased R &D expenditures by 3%, to ¥543.8 billion ($4,350 million). Consistent with the Company's mid-term policy, Matsushita focused R &D spending on the five areas of expected growth, namely digital broadcasting systems, mobile communications, semiconductors, data storage...

  • Page 34
    ... holding gains of available-for-sale securities. T o ta l A sse ts a n d S t o c k h o ld e r s ' E q u it y B illio n s o f y e n The Company's capital investment (including intangibles other than goodwill) during fiscal 2001 totaled ¥531.2 billion ($4,250 million), an increase from the previous...

  • Page 35
    ... has reported sales, operating profit and identifiable assets by geographical location of companies. Business segments correspond to categories of activity classified primarily by markets and products. "Consumer products" includes video and audio equipment, as well as home appliances and household...

  • Page 36
    By Business Segment Millions of yen Thousands of U.S. dollars 2001 Sales 2000 2001 Consumer products Customers ...¥3,072,039 ¥3,012,382 $24,576,312 Intersegment ...4,098 6,544 32,784 Total ...3,076,137 3,018,926 24,609,096 Industrial products Customers ...Intersegment ...Total ...Components ...

  • Page 37
    ...Location of Companies Millions of yen Thousands of U.S. dollars 2001 Sales 2000 2001 Japan Customers ...¥4,981,666 ¥4,706,534 $39,853,328 Intersegment ...1,204,963 1,057,828 9,639,704 Total ...6,186,629 5,764,362 49,493,032 North and South America Customers ...Intersegment ...Total ...Europe...

  • Page 38
    ... 31, 2001 and 2000 Millions of yen Thousands of U.S. dollars (N ote 2) Assets Current assets: 2001 2000 (R estated-Note 1 (i)). 2001 Cash and cash equivalents (Note 8) ...Time deposits (Note 8) ...Short-term investments (Notes 5 and 16) Trade receivables (Notes 4 and 8): Notes ...Accounts...

  • Page 39
    Millions of yen Thousands of U.S. dollars (N ote 2) Liabilities and Stockholders' Equity Current liabilities: 2001 2000 (R estated-Note 1 (i)). 2001 Short-term borrowings, including current portion of long-term debt (Notes 8 and 16) ...Trade payables (Note 4): Notes ...Accounts ...Total trade ...

  • Page 40
    ... of Income Matsushita Electric Industrial Co., Ltd. and Subsidiaries Years ended March 31, 2001, 2000 and 1999 Millions of yen Thousands of U.S. dollars (N ote 2) 2001 Revenues: 2000 1999 (R estated-Note 1 (i)). 2001 Net sales (Note 4) ...Interest income ...Dividends received ...O ther income...

  • Page 41
    ... Years ended March 31, 2001, 2000 and 1999 Millions of yen Thousands of U.S. dollars (N ote 2) 2001 Common stock (Notes 11 2000 1999 2001 (R estated-Note 1 (i)) and 14): Balance at beginning of year ...Conversion of bonds ...Stock issued under exchange offering Balance at end of year...

  • Page 42
    ... Statements of Cash Flows Matsushita Electric Industrial Co., Ltd. and Subsidiaries Years ended March 31, 2001, 2000 and 1999 Millions of yen Thousands of U.S. dollars (N ote 2) 2001 Cash flow s from operating activities (Note 2000 1999 (R estated-Note 1 (i)). 2001 14): Net income ...Â¥0,041...

  • Page 43
    ... of the Company's products are marketed under several trade names, including "Panasonic," "National," "Technics," "Quasar," "Victor" and "JVC." Sales in fiscal 2001 were categorized as follows: video and audio equipment-23%, home appliances and household equipment-17%, information and communications...

  • Page 44
    ... of basic and diluted net income per share on the face of 42 Matsushita Electric Industrial 2001 Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare...

  • Page 45
    ... SFAS No. 133." Both Statements establish accounting and reporting standards for derivative instruments and for hedging ...companies is Matsushita Electric Works, Ltd. (MEW). At March 31, 2001, the Company has a 32.4% equity ownership in MEW. Millions of yen Thousands of U.S. dollars 2001 2000 2001...

  • Page 46
    ... with related carrying amounts as follows: Millions of yen Thousands of U.S. dollars 2001 2000 2001 Carrying amount ...¥278,199 Market value ...355,851 ¥272,343 310,311 $2,225,592 2,846,808 5. Investments in Available-for-Sale Securities As discussed in Note 1 (i), the Company adopted SFAS...

  • Page 47
    ...490,017 ¥866,768 ¥377,881 ¥1,130 Maturities of investments in available-for-sale securities at March 31, 2001 and 2000 are as follows: Millions of yen Thousands of U.S. dollars 2001 Cost Fair value Cost 2000 Fair value Cost 2001 Fair value Due within one year Due after one year through five...

  • Page 48
    ... Company accounts for impairment of long-lived assets in accordance with SFAS No. 121. The Company recognized an impairment loss of ¥19,565 million during fiscal 2000 related to the write-down of the machinery and equipment to manufacture CRTs and other components. As the prices of these products...

  • Page 49
    ... and length of service. If the termination is involuntary or caused by death, the severance payment is greater than in the case of voluntary termination. The lump-sum payment plans are not funded. Effective April 1, 1999, the Company adopted SFAS No. 87, "Employers'Accounting for Pensions," and SFAS...

  • Page 50
    ... cost for the contributory, funded benefit pension plans and the unfunded lump-sum payment plans of the Company for the years ended March 31, 2001 and 2000 consisted of the following components: Millions of yen Thousands of U.S. dollars 2001 2000 2001 Service cost-benefits earned during the...

  • Page 51
    ... the contributory, funded benefit pension plans of the Company as the effects on the consolidated financial statements of the implementation of SFAS No. 87 were immaterial. Pension costs, excluding the social security tax portion, for the year ended March 31, 1999 amounted to ¥79,570 million. The...

  • Page 52
    ... . Net unrealized holding gains of available-for-sale securities ...O ther ...Total gross deferred tax liabilities ...Net deferred tax assets ...The net change in total valuation allowance for the years ended March 31, 2001 and 2000 were increases of ¥5,087 million ($40,696 thousand) and ¥37,445...

  • Page 53
    ..., totaling ¥12,995 million ($103,960 thousand), planned to be proposed in June 2001 in respect of the year ended March 31, 2001 or for the related appropriation. The Company's directors and certain senior executives may be granted options to purchase the Company's common stock. All stock options...

  • Page 54
    ... (loss) for the three years ended March 31, 2001 are as follows: Pre-tax amount Millions of yen Tax expense N et-of-tax amount For the year ended March 31, 1999 Translation adjustments ...Unrealized holding gains of available-for-sale securities: Unrealized holding gains (losses) arising during the...

  • Page 55
    ...of the regional-based employee remuneration system and early retirement program in several domestic subsidiaries. Included in other income of revenues for the year ended March 31, 2000 is a gain of ¥58,566 million from the sale of EPCO S AG shares, a German electronic components manufacturing joint...

  • Page 56
    ... dollars 2001 2000 1999 2001 a) Cash paid: Interest ...Â¥048,985 Income taxes ...146,694 b) Noncash investing and financing activities: Conversion of bonds ...Transfer of ownership arising on capital transactions by consolidated and associated companies ...Stock issued under exchange offering...

  • Page 57
    ...March 31, 2001 for discounted export bills of exchange and guarantees of loans amounted to approximately ¥105,246 million ($841,968 thousand), including ¥78,965 million ($631,720 thousand) for loans guaranteed principally on behalf of associated companies and customers. There are a number of legal...

  • Page 58
    ...sales, net income (loss) and net income (loss) per share for the two years ended March 31, 2001 are set forth in the following table: 2001 Millions of yen, except per share information N et income (loss) N et income per share: (loss) basic Thousands of U.S. dollars, except per share information N et...

  • Page 59
    ... exempted from such disclosure requirement in Securities Exchange Act filings with the United States Securities and Exchange Commission. In our report dated May 10, 2000, we expressed an opinion that the 2000 and 1999 consolidated financial statements of Matsushita Electric Industrial Co., Ltd. and...

  • Page 60
    ...Industrial Corporation Sdn. Bhd. Matsushita Television & Network Systems Co., (Malaysia) Sdn. Bhd. Matsushita R efrigeration Industries (S) Pte. Ltd. Matsushita Electronics (S) Pte. Ltd. N ote: Matsushita's consolidated financial statements as of March 31, 2001 comprise the accounts of 321 companies...

  • Page 61
    ... Company of New York New York, NY, U.S.A. Corporate Bonds 7 - 1 / 4 % Bonds due August 1 , 2 0 0 2 Panasonic Finance (America), Inc. 1 R ockefeller Plaza, Suite 1001, New York, NY 10020-2002, U.S.A. Phone: + 1-212-698-1365 European Investor Relations Office (Listed on the London Stock Exchange...

  • Page 62
    ic ason n a p w. ww p/ g .c o .j al lob This entire report is printed with soy ink on paper which is 50% recycled, and bleached using a chlorine-free process. Printed in Japan