In fiscal year 2017, Panasonic removed substantial differences in exchange rates, realizing substantial gains in revenue. In terms of sales, the businesses centered on automotive, energy, and engineering automation achieved revenue. In terms of operating profit and net profit, they benefited from Strong growth in the industrial sector, as well as other gains and losses, to achieve gains.
In 2018, it is expected that the increase in income will continue to be achieved. Among them, the energy and industrial sectors will become important tractions. In addition, we will target the net profit of JPY 250 billion that was proposed in 2016 to promote growth.
This means that Panasonic has made substantial progress and success in its strategy of transforming B2C businesses such as home appliances into B2B businesses such as automotive electronics.
From a regional point of view, Panasonic’s revenue growth in overseas markets was faster than the growth in the domestic market. In FY 2017, Panasonic’s overseas sales were 4258.1 billion yen, up 16% year-on-year; Japan’s domestic sales were 3724.1 billion yen, up 2% year-on-year.
This year marks the 100th anniversary of the founding of Panasonic and the 40th anniversary of the development of China's business. At present, Panasonic has 592 subsidiaries around the world, of which there are 75 companies in China. The number of employees is about 58,000.
Five or six years ago, Panasonic was once plunged into a quagmire with huge losses. Matsushita President Tsuga Ichima presented Panasonic’s new strategy of transforming from a home appliance business to a B2B business and expanding. At present, Panasonic is the world’s largest supplier of electric vehicle batteries. Tesla's battery is also produced by its joint venture with Panasonic. Panasonic not only operates a large-scale vehicle battery plant in the United States and Tesla, but also completed the on-board battery plant in Dalian, China, last year.
Matsushita has proposed that sales of the automotive battery business in 2018 will increase to 2.2 times of 2015, reaching the target of 400 billion yen.
At this year's 2018CES (United States Consumer Electronics Show), 80% of the content displayed by Matsushita is a commercial enterprise, and no home appliances are exhibited for the first time. Matsushita wants to express the fact that Matsushita, which grew together with home appliances, has developed technology from home appliances. Currently in the business of B2B solutions, there is vitality. In the future, Panasonic will provide solutions in four areas: residential space, supply chain, mobile and environmental (energy).
However, this does not mean that Matsushita has abandoned the appliance business. Matsuo Electric (China) Co., Ltd. Chairman of the Board and the representative of China and North East Asia, Yokoo Ichida stated in January this year that in the future Panasonic will develop B2B business in China and will never Abandon the home appliance business to maintain contact with consumers. In fact, in February this year, Panasonic Air Conditioning held a national agency conference in Zhuhai.