PANASONIC REPORTS FISCAL 2015 ANNUAL RESULTS (Achieved Mid-term Plan Target of 5% Operating Profit Ratio)

Panasonic Corporation reported its consolidated financial results for the year ended March 31, 2015

Consolidated group sales for fiscal 2015 were 7,715.0 billion yen, at the same level as 7,736.5 billion yen in the year ended March 31, 2014 (fiscal 2014). In Japan, although sales in housing-related and consumer electronics businesses decreased due mainly to weakening demand after the consumption tax hike in April 2014, sales of residential solar photovoltaic systems were strong. Overseas sales increased due mainly to strong sales in automotive-related business along with robust demand, and a positive effect from yen depreciation.

Panasonic promoted its Business Division-based Management as an initiative in the second year of its mid-term management plan, “Cross-Value Innovation 2015 (CV2015).” Panasonic also promoted initiatives to consolidate a foundation to achieve CV2015 and to set its growth strategy for a ‘new Panasonic’ in fiscal 2019.

Panasonic promovió su Gestión basada en la División de Negocios como una iniciativa de su plan "Cross-Value Innovación 2015 (CV2015)”. También promovió iniciativas para consolidar una base con la finalidad de lograr sus objetivos y establecer su estrategia de crecimiento para una "Nueva Panasonic” en el año fiscal 2019.

Operating profit significantly increased by 25% to 381.9 billion yen from 305.1 billion yen a year ago due to improvement of challenging businesses including business restructuring benefits, fixed cost reductions and materials cost streamlining. This led that the company achieved its CV2015 financial targets of operating profit and cumulative free cash flow one year ahead of schedule.

In other income (deductions), gains from business transfers and proceeds from fixed assets were recorded. The business restructuring expenses including impairment losses on fixed assets as well as expenses related to litigation and the prevention of further accidents with residential water heating systems were also incurred. Accordingly, pre-tax income decreased by 12% to 182.5 billion yen from 206.2 billion yen a year ago. Net income attributable to Panasonic Corporation significantly increased by 49% to 179.5 billion yen from 120.4 billion yen a year ago due mainly to a decrease in provision for income taxes as a result of recording deferred tax assets (DTA), namely decrease in valuation allowances to DTA, of Panasonic Corporation in consolidated financial statements.