Professional Documents
Culture Documents
Digital AV Business
February 6, 2008
1
Today’s Topics
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
1
2
PAVC’s Business Structure
Visual Products TVs, STBs, car-mounted TVs, plasma panels, etc. Sales proportion
and Display
Devices
Business
Group Approx. 45%
3
PAVC’s FY2008 Outlook
(yen: trillions)
With overseas sales as the driving force, sales [FY2008 outlook] Manufacturing site basis
increased by about 1.6 times since the Expected to achieve the original targets
establishment of the business domain
- Sales: 1.94 trillion yen (+6% vs. FY2007)
2 1.94
- Operating profits: 116 billion yen
1.83
(+25.1 billion yen from FY2007)
[Overview]
1.52
Comparison with FY2004 when the business
1.32 domain was established
1.20 - Sales: increased by about 1.6 times (average
annual growth: 13%)
1 76%
76% - Operating profits: increased by about 4 times
(+87.3 billion yen)
Overseas sales
plan
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
2
PAVC’s Sales Analysis by 4
Products (vs. FY2007) Manufacturing site basis
FY2007 FY2008
Apr. – Dec. + 114 billion yen (+8%) Apr. – Dec.
Flat-panel
Others
TV
AV system for
professional use
DSC
HD PC
VIERA camcorder 1,551
theater
CRT TV system
DIGA billion yen
Audio VHS VCR
1,437 Analog
camcorder
billion yen
AV systems for professional use: Broadcasting video camcorders, Avionics systems, projectors
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PAVC’s Sales by Region
Manufacturing site basis
(yen: billions) (yen: billions)
Sales proportion North America Sales proportion
700 Japan 700 28%
25%
+3% +3%
0 0
+20% +7%
0 0
'06 Apr-Dec '07 Apr-Dec '06 Apr-Dec '07 Apr-Dec
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
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6
Flat-panel TV Sales
MEI consolidated basis
(yen: billions) (yen: billions)
Sales proportion Sales proportion
Japan 25% 100 North 24%
120 America
+7% +9%
+- 0%
-4% 100% -6% 100%
-14%
(yen: billions)
400
Global
vs. FY2006 +19% +20%
312.8
+2%
0 40% 100% 0 40%
'07 Apr-Jun Jul-Sep Oct-Dec 209.6 '07 Apr-Jun Jul-Sep Oct-Dec
186.0
(yen: billions) (yen: billions)
Sales proportion Sales proportion
Europe 34% Others
200 160% Apr.-Dec. total 708.4 billion yen 150 17% 200%
* Including CIS
+48% (vs. FY2006 : +15%) +73% 180%
+31% 140% +61%
0 50% 160%
+13%
120% '07 Apr-Jun Jul-Sep Oct-Dec 140%
+6% 120%
100%
100%
0 80% 0 80%
'07 Apr-Jun Jul-Sep Oct-Dec '07 Apr-Jun Jul-Sep Oct-Dec
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VIERA Link Sales
VIERA Link products: Total sales of DVD recorders, home theater systems, DSCs, and camcorders
Global: Panasonic estimates based on the data from NPD(US),
GfK(Europe) and JEITA/CIPA (Japan) Source: JEITA/CIPA
Apr.
Apr.-Dec.
Dec. total Japan Apr.
Apr.-Dec.
Dec. total
Global
Panasonic Competitors Panasonic Competitors
100%
100%
%
+13
% -1 % +22 +
- 0%
0%
'06 '07 '06 '07 '06 '07 '06 '07
当社 他社 0%
US Apr.-
Apr.-Nov. total Europe Apr.-
Apr.-Oct. total
Panasonic Competitors Panasonic Competitors
100%
100%
+4 % +4 % % -4 %
+19
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
4
Sales Trends of 8
Major System Products
No. 1 support rating AVIONICS In- In-flight entertainment system
Notebook PCs Firmly maintains
maintains market share of
Global standard tough mobile PCs system approx. 70%
Let's note The eX2 next-generation in-flight
- Achieved the No. 1 market share (22%) in the entertainment system has been
Japanese mobile PC category for the 2nd
consecutive year installed in major airplanes (B777,
- Nikkei PC magazine: Earned No. 1 customer B747, A340, A330, etc.)
satisfaction - A380: October 2007
The first model was installed in
TOUGHBOOK Singapore Airlines.
- Gained market share of 50% worldwide
(No. 1 for the 5th consecutive year since 2002) - CSS will be built into B787 (early 2009)
9
Today’s Topics
1. PAVC’s Profile and FY2008 Business
Outlook
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
5
10
Four Strategic Businesses
Four Strategic Promote PDPs for large
Businesses screen TVs
(ABCD-Quartet) Target share: 25% in 37-
37-inch
and larger flat-
flat-panel TVs
11
3D2 Value Chain Strategy
3D products 3D technologies
(SD, DVD, DTV)
X (HD, UD, Device)
=
Achieve "Digital Hearth" that offers "Peace of mind and safety,"
safety," "Ease of use and
convenience," and "Dreams and excitement"
Digital Hearth
DSC
Intercom
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
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12
Accelerate Selection and
Concentration for 3D Product Business
3D product group
SD Card, DSC, PDP, LCD,
CATV, Car-mounted TV, DVD/BD,
HD camcorder, Home theater
system
DVD/BD media,
DVD/BD-related devices,
Optical modules, P2 system, etc
[Others]
Audio products, PC
Systems business products
(excluding P2 system), etc.
3D product group
Others
Others Products withdrawn from
Audio
82% market up to FY2008
Audio products
products of PAVC’s sales
73% 81% CRT TVs (Japan, US, Europe,
CRT
CRT TVs
TVs China)
VHS VCR, Headphone stereo,
MP3 player, Portable MD player,
Portable CD Player, Technics
47% mini component stereo system,
DVD-R media, Desktop PC with
LCD monitor, Terrestrial Mobile
communication business,
Amplifier for medical use,
Microcassette recorder
FY04 FY08 FY09 FY10
13
PAVC’s Sales Targets
in the GP3 Plan
Global sales: 2.4 trillion yen, Average annual growth rate of 9%
Double-
Double-digit growth in overseas sales:
Average annual growth rate of 13%, Ratio to overseas sales of 80%
80%
BRICs + Vietnam: Average annual growth rate of 25%, 300 billion yen sales
(yen: trillions) Sales by Region Overseas Sales & BRICs+ Vietnam
3 overseas sales
74% 76% 80%
China BRICs+ Vietnam
China
Japan 12% 13% 18%
2
Asia
Asia
2
CIS
CIS &
& Middle
Middle
East
East
Europe
Europe
1 1
Latin
Latin America
America
North
North
America
America BRICs+ Vietnam
0
FY2007 FY2008 FY2009 FY2010 FY2007 FY2008 FY2009 FY2010
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
7
Develop Locally-Oriented
Locally-Oriented 14
India (FY08)
Create a structure integrating product
Malaysia (FY08)
Asia Singapore development, manufacturing, and sales
(FY08)
Thailand (FY07)
Vietnam (FY09)
Start feasibility study of transforming
Double overseas production capacity domain companies in the US into sales
5.4 million units in FY07 Æ
10.8 million units in FY09 companies
Living in HD Program
Expand from 21 families as of January 2008 to 100 families by
the end of January 2009
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
8
Strengthen the Synergy of 16
Vertical Integration
Maximize product performance and quality level by further
promoting the in-
in-house production of key devices
underpinned by black-
black-box technology
Improve capabilities to respond to changes in the market
Strengthen black-
black-box technologies to achieve the world's
best manufacturing that combines the company's collective
strengths
PDP TV (42-
(42-inch full HD) DSC BD recorder
Panel Aspherical lens Optical pick-up
CCD BD drive
LSI LSI LSI
In-
In-house production ratio: In-
In-house production ratio: In-
In-house production ratio:
Approx. 60% Over 50% Approx. 70%
17
Expand Synergy of Vertical Integration
beyond Product Categories
Drastic reform of development efficiency by sharing
HD Platform Uniphier®
Uniphier®
Car-
Car-mounted TV supporting
VIERA DIGA terrestrial digital broadcasts HD camcorder
HD platform (UniPhier)
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
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Today’s Topics
19
Demand for Flat-Panel TVs
Demand for large-
large-screen models continues to grow more than original forecasts.
Demand for 50-
50-inch and larger models would continue to grow rapidly.
Demand for 37-
37-inch and larger-
larger-screen models is expected to account for over 50%
of total demand for flat-
flat-panel TVs.
million FY2007-2011
units <Demand for 37-inch and Larger Flat-Panel TVs> Average
80 growth rate
73
: Previous year's forecast 50-inch and larger
70
62 +59%
60
50 50
50
36 40
40
37- 49 inches
30 28 +35%
20
20
10
0
2007 2008 2009 2010 2011 FY
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
10
Basic Policy for Flat-Panel 20
TV Business
Aim for a market share of 25% in the 37-inch and
larger models
Increase cost and product competitiveness,
competitiveness, and strengthen
the product line-
line-up with PDPs as the core
Lead
Lead the
the large
large screen
screen TV
TV market
market with
with PDPs
PDPs
Stimulate
Stimulate market
market demand
demand byby enlarging
enlarging screen
screen size,
size, improving
improving
PDP image
image quality,
quality, making
making thinner
thinner products,
products, reducing
reducing power
power
consumption
consumption andand costs
costs
Strengthen
Strengthen the the product
product line-up
line-up in
in the
the volume
volume zone
zone
Establish
Establish stable
stable panel
panel procurement
procurement system
system inin mid-
mid- and
and long-
long-
LCD term,, strengthen
term strengthen cost
integration,
cost competitiveness
competitiveness through
through vertical
vertical
integration, andand prepare
prepare for
for the
the future
future development
development of of OLED
OLED
(invest
(invest in
in IPS
IPS Alpha Technology's 22nd
Alpha Technology's nd plant)
plant)
Accelerate
Accelerate R&D
R&D activities
activities of
of OLED
OLED which
which will
will be
be the
the leader
leader of
of
OLED flat-panel
flat-panel TVs
TVs in
in the
the next
next generation
generation
21
Today’s Topics
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
11
The 5th Plant to Produce 22
Next-generation PDPs
Fifth PDP
plant in Japan
Commencing
Commencing production
production
in
in May
May 2009
2009 (planned)
(planned)
Computer
Computer generated
generated picture
picture
23
Evolution of PDP Device Factory
1 panel 3 panels 6 panels 8 panels 16 panels
Number
Number of
of
42-inch
42-inch panels
panels
per
per sheet
sheet
Production
Production
lead-time
lead-time vs.
vs. 1st
1st plant
plant
68%
68% vs.
vs. 1st
1st plant
plant
vs.
vs. 1st
1st plant
plant
62%
62% 53%
53%
Number
Number of
of
processes
processes vs.
vs. 1st
1st plant
plant
vs.
vs. 1st
1st plant
plant vs.
80%
80% vs. 1st
1st plant
plant
77%
77% 67%
67%
1st plant 2nd plant 3rd plant 4th plant 5th plant
(Ibaraki) (Ibaraki) (Amagasaki) (Amagasaki) (Amagasaki)
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
12
Neo PDP Technology Achieving 24
Higher Ultra
Ultra Thin Lower
Energy image Large
Large profile costs
saving quality screen
screen
consumption
More vivid
Traditional panel
(Full-HD model
High light emission
efficiency
images!
FY2008) technology
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
13
Neo PDP
Realizing High Quality 26
Higher
Higher picture
picture
quality
quality Images
Reproducing cinema quality colors High contrast of
Displays yellow, gold and crimson 30,000:1
vividly
0.9 Digital cinema (Questionnaire) Black
Black reproducibility
reproducibility
overwhelming
overwhelming HD
HD CRT
CRT
0.8
Important colors in movies
0.7
G New real black drive method
Dark place contrast Dark place contrast
0.6
Important colors in movies Max. 10,000:1 Max. 30,000:1
(Yellow)
(Gold )
0.4
Full HD (1920×1080)
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
14
Neo PDP 28
Thin
Thin profile
profile "Super" Thin Full-flat PDP
Examples of 50-inch type
22 kg
Approx. 1/2
of the previous
model*2
*2
Full-flat
24.7 mm *1
Approx 1/4
of the previous
model*2
Neo PDP
Reducing Full-HD Panel 29
Lower
Lower costs
costs
Costs
Full-HD single scan technology
Reduced number of parts in
42 FHD model FY08
data drive circuit by 65%
Reduction
Item
rate
t
cos
n g the rcuit
Shift to
single scan
i
Halv drive c
e
i Single scan - 50%
of t h
42 FHD model FY09 Multiple outputs
of data driver - 8%
Wave form
optimization - 5%
Others - 2%
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
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30
Today’s Topics
Strengthen Foundation 31
of LCD TV Business
Form an Alliance with Hitachi and Canon for
Liquid Crystal Panels
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32
Advantages of IPS-Pro Panel
Compared with VA panel,
Higher viewing angle features
No pixel division
Bright
Bright and
and
Efficient
Efficient circuit
circuit cost
cost comfortable
comfortable display
display
(Reduced driver IC and backlight costs) (1.4 times at single-
single-speed,
1.7 times at double-
double-speed)
33
Today’s Topics
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
17
34
HD Wireless Transmission Changes
Scenes in the Living Room
Renewing scenes of the living room in combination with
a flat-panel wall-mounted TV
Providing a system for simple connection, free layout, and
single remote operation
Uncompressed
wireless
transmission
Beam steering of full-HD
TV tuner, STB, technology eliminating images
Blu-ray Disc recorder, the influence of
and Theater system people crossing
installed anywhere
Compliant to
VIERA Link
35
Enjoy Video Clips on Internet TV
Enjoy rich contents of YouTube and Picasa on a large-screen TV with "VIERA CAST"
Single-click access to the Internet on a remote controller
VIERA CAST
home screen
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
18
36
New TVs to Enhance
CATV Programs
tru2way-ready TV AnyPlay
• TV incorporating OpenCable- • "AnyPlay," the first portable set-top box
compliant digital cable • Favorite recorded contents can be
• No need for a set-top box exported to cars and outdoor activities
• Provides latest Comcast services • Capable of playing DVDs
such as HD video on demand with
a single remote controller
"AnyPlay" is a
trademark of Comcast,
a U.S. company
Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.
19
Disclaimer 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 Matsushita and its Group companies (the Matsushita 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 Matsushita 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 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 presentation. 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.
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;
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changes and changing consumer preferences with timely and cost-effective introductions of new products in markets that are
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