Announcement of Financial Results: Panasonic Reports Fiscal 2010 Annual Results

Panasonic Corporation (Panasonic)(NYSE:PC) today reported its consolidated financial results for the year ended March 31, 2010 (fiscal 2010).

Consolidated Results

Consolidated group sales for fiscal 2010 decreased 4% to 7,418.0 billion yen, from 7,765.5 billion yen in the year ended March 31, 2009 (fiscal 2009). Of the consolidated group total, domestic sales amounted to 3,994.4 billion yen, down 2% from 4,082.2 billion yen in fiscal 2009. Overseas sales decreased 7% to 3,423.6 billion yen, from 3,683.3 billion yen in fiscal 2009.

During the year under review, despite a visible market recovery in some regions such as China and Asia, the industry in general was unable to overcome the impact of the global recession. Under these circumstances, the market structure underwent rapid change especially in terms of demand shifts to emerging markets and lower-priced products, along with the expansion of environment and energy related markets. Panasonic simultaneously rebuilt its management structure, and took action for further growth in fiscal 2010, as the final year of its GP3 plan.

Specifically, Panasonic drastically reformed its business structure to rebuild its management structure. In addition, the company pursued penetration and internalization of "Itakona," acceleration of procurement cost reductions, reinforcement of comprehensive cost reduction efforts, and capital investment and inventory reductions.

Meanwhile, to prepare for future growth, the company developed its unique products with the following concepts as a cornerstone: "super link," "super energy saving" and "thorough universal design." In addition, the company globally developed its home appliances business, launching refrigerators and drum-type washing machines in Europe; targeting emerging markets through local-oriented manufacturing; commercializing full high-definition (HD) 3D TVs that are expected to open a new era in television; and strengthening global systems and equipment businesses. These actions drove Panasonic Group to a new growth.

Having added SANYO Electric Co., Ltd. (SANYO) and its subsidiaries to the Panasonic Group, the company has been working on creating and maximizing synergies as early as possible, mainly in strengthening its competitive edge in the global market in environment and energy related businesses by combining technologies and manufacturing expertise which each company has cultivated over the years.

Regarding earnings, operating profit¹ for this fiscal year improved significantly to 190.5 billion yen, up 161% from 72.9 billion yen in fiscal 2009. This was due mainly to restructuring initiatives such as streamlining material costs and reducing fixed costs. Regarding other income (deductions), the company incurred expenses of 219.8 billion yen including business restructuring expense such as the implementation of early retirement programs. These factors resulted in a pre-tax loss of 29.3 billion yen, improved from a pre-tax loss of 382.6 billion yen in fiscal 2009. Accordingly, net income attributable to Panasonic Corporation was a loss of 103.5 billion yen, improved from a loss of 379.0 billion yen a year ago.

¹ For information about operating profit, see Note 2 of Notes to consolidated financial statements.

Breakdown by Business Segment

The company's annual consolidated sales and operating profits by business segment, as compared with prior year amounts, are summarized as follows:

Digital AVC Networks

Sales in this segment decreased 9% to 3,409.5 billion yen, from 3,749.0 billion yen in fiscal 2009. Although domestic sales of flat-panel TVs and automotive electronics and Blu-ray Disc recorders were favorable, overall sales declined due mainly to a sales decline of notebook PCs and mobile phones. Despite this sales decline, operating profit significantly improved to 87.3 billion yen from 3.2 billion yen in fiscal 2009. This was due mainly to comprehensive streamlining efforts.

Home Appliances

Despite strong sales of refrigerators, overall sales in this segment decreased 7% to 1,142.3 billion yen compared with 1,222.9 billion yen in fiscal 2009, due mainly to weak sales of air conditioners and compressors. Comprehensive streamlining efforts offset the negative impact of sales decline and led the operating profit increase of 36% to 66.5 billion yen, compared with 49.0 billion yen in fiscal 2009.

PEW and PanaHome

Sales in this segment decreased 8% to 1,632.1 billion yen, from 1,766.3 billion yen in fiscal 2009. At Panasonic Electric Works Co., Ltd. (PEW) and its subsidiaries, sales mainly decreased in electrical construction materials and building materials. For PanaHome Corporation and its subsidiaries, ongoing sluggishness in the Japanese housing market conditions led to sales decrease. Operating profit was 34.7 billion yen, down 13% from 40.1 billion yen in fiscal 2009, due mainly to a decline in sales.

Components and Devices

Sales in this segment were down 11% to 1,005.3 billion yen, compared with 1,127.3 billion yen in fiscal 2009, due mainly to sales downturns in batteries and semiconductors. Despite this sales decline, operating profit improved significantly to 36.1 billion yen from 7.1 billion yen in fiscal 2009, due mainly to fixed cost reductions.

SANYO

Sales in this segment, in the period from January to March 2010, totaled 404.8 billion yen. Sales of solar cells were strong helped by economic stimulus programs and environment policies in several countries. Operating profit resulted in a loss of 0.7 billion yen, incurring the expenses such as amortization of intangible asset recorded at acquisition.

Other

Sales in this segment totaled 1,012.2 billion yen, down 6% from 1,071.7 billion yen in fiscal 2009, due mainly to weak sales in factory automation equipment. Operating profit also declined 18% to 19.7 billion yen, compared with 23.9 billion yen in fiscal 2009.

Consolidated Financial Condition

Net cash provided by operating activities in fiscal 2010 amounted to 522.3 billion yen. This result was due mainly to depreciation and cash inflows from a decrease in inventories. Net cash used in investing activities amounted to 323.7 billion yen. Despite having proceeds from sales of fixed assets and a decrease in time deposits, this result was due primarily to capital expenditures for tangible fixed assets, mainly consisting of manufacturing facilities for prioritized business areas such as flat panel TVs and batteries, as well as cash outflows to purchase SANYO shares (deducting the amount of cash and cash equivalents of SANYO and its subsidiaries as of acquisition date). Net cash used in financing activities was 57.0 billion yen, due mainly to dividend payment. All these activities with the effect of exchange rate fluctuations resulted in cash and cash equivalents of 1,109.9 billion yen at the end of fiscal 2010, up 136.0 billion yen, compared with the end of fiscal 2009.

The company's consolidated total assets as of March 31, 2010 increased by 1,954.7 billion yen to 8,358.1 billion yen, compared with the amount at the end of fiscal 2009. This increase was due primarily to the effect of consolidating SANYO and its subsidiaries. Panasonic Corporation shareholders' equity increased by 8.5 billion yen, compared with the end of the last fiscal year, to 2,792.5 billion yen as of March 31, 2010. Noncontrolling interests increased by 458.7 billion yen from fiscal 2009 to 887.3 billion yen, mainly due to the effect of consolidating SANYO.

Dividend

Total cash dividends for fiscal 2010, ended March 31, 2010, are expected to be 10 yen per share, including an interim dividend of 5.0 yen per share paid on November 30, 2009.

Outlook for Fiscal 2011

Regarding the business environment for fiscal 2011 ending March 31, 2011, the company currently anticipates the market conditions to continue to be unpredictable due to yen appreciation and ever-intensified global competition, despite a recovering worldwide economy. Under these conditions, the company made an urgent start into the phase of innovation in the first year of its new midterm management plan to enhance its profitability based on growth and return the net income attributable to Panasonic Corporation into the black. Therefore, the company aims to become "Panasonic Group filled significant growth potential." The company currently expects fiscal 2011 sales on a consolidated basis to total 8,800.0 billion yen, an increase of 19% from fiscal 2010. Consolidated operating profit is forecast to increase by 31% from fiscal 2010 to 250.0 billion yen. Consolidated income before income taxes² is anticipated to be 150.0 billion yen, with net income attributable to the company expected to be 50.0 billion yen.

² Factors affecting the forecast for other income (deductions) of 100.0 billion yen (the difference between operating profit and income before income taxes) include business restructuring expenses of 40.0 billion yen.

Panasonic Corporation is one of the world's leading manufacturers of electronic and electric products for consumer, business and industrial use. Panasonic's shares are listed on the Tokyo, Osaka, Nagoya and New York stock exchanges.

For more information, please visit the following web sites:

Panasonic home page URL: http://panasonic.net/

Panasonic IR web site URL: http://panasonic.net/ir/

Disclaimer Regarding Forward-Looking Statements

This press release 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 press release 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 press release. 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 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, Asia and other 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 acquisition of 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; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout the world and other events that may negatively impact business activities of the Panasonic Group. The factors listed above are not all-inclusive and further information is contained in Panasonic's latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

(Financial Tables and Additional Information Attached)

Panasonic Corporation
Consolidated Statement of Operations *
(Year ended March 31)
		Yen (millions)						Percentage
		2010			2009			2010/2009
Net sales		¥ 7,417,980			¥ 7,765,507			96	%
Cost of sales		(5,341,059	)		(5,667,287	)
Selling, general and
administrative expenses		(1,886,468	)		(2,025,347	)
Interest income		12,348			23,477
Dividend income		6,746			11,486
Interest expense		(25,718	)		(19,386	)
Expenses associated with
the implementation of
early retirement programs **		(38,954	)		(38,351	)
Other income (deductions), net		(174,190	)		(432,733	)
Income (loss) before income taxes		(29,315	)		(382,634	)		--
Provision for income taxes		(141,833	)		(37,358	)
Equity in earnings of
associated companies		481			16,149
Net income (loss)		(170,667	)		(403,843	)		--
Less: Net income (loss) attributable to
noncontrolling interests		(67,202	)		(24,882	)
Net income (loss) attributable to
Panasonic Corporation		¥ (103,465	)		¥ (378,961	)		--
Net income (loss) attributable to
Panasonic Corporation
common shareholders, basic
per common share		(49.97) yen			(182.25) yen
per ADS		(49.97) yen			(182.25) yen
Net income (loss) attributable to
Panasonic Corporation
common shareholders, diluted
per common share ***		--			(182.25) yen
per ADS ***		--			(182.25) yen
(Parentheses indicate expenses, deductions or losses.)
* ** *** See Notes to consolidated financial statements.
Supplementary Information
(Year ended March 31)
		Yen (millions)
		2010			2009
Depreciation (tangible assets)		¥ 251,839			¥ 325,835
Capital investment ****		¥ 385,489			¥ 494,368
R&D expenditures		¥ 476,903			¥ 517,913
Number of employees (March 31)		384,586			292,250
**** These figures are calculated on an accrual basis.

Panasonic Corporation
Consolidated Balance Sheet **
March 31, 2010
With comparative figures for March 31, 2009
		Yen (millions)
Assets		March 31, 2010			March 31, 2009
Current assets:
Cash and cash equivalents		¥ 1,109,912			¥ 973,867
Time deposits		92,032			189,288
Short-term investments		--			1,998
Trade receivables:
Notes		74,283			42,766
Accounts		1,134,915			743,498
Allowance for doubtful receivables		(24,158	)		(21,131	)
Inventories		913,646			771,137
Other current assets		505,418			493,271
Total current assets		3,806,048			3,194,694
Investments and advances		636,762			551,751
Property, plant and equipment,
net of accumulated depreciation		1,956,021			1,574,830
Other assets		1,959,226			1,082,041
Total assets		¥ 8,358,057			¥ 6,403,316
Liabilities and Equity
Current liabilities:
Short-term debt		¥ 299,064			¥ 94,355
Trade payables:
Notes		59,608			38,202
Accounts		1,011,838			641,166
Other current liabilities		1,445,353			1,226,705
Total current liabilities		2,815,863			2,000,428
Noncurrent liabilities:
Long-term debt		1,028,928			651,310
Other long-term liabilities		833,493			538,997
Total noncurrent liabilities		1,862,421			1,190,307
Total liabilities		4,678,284			3,190,735
Panasonic Corporation shareholders' equity:
Common stock		258,740			258,740
Capital surplus		1,209,516			1,217,764
Legal reserve		93,307			92,726
Retained earnings		2,349,487			2,479,416
Accumulated other
comprehensive income (loss) *		(448,232	)		(594,377	)
Treasury stock		(670,330	)		(670,289	)
Total Panasonic Corporation shareholders' equity		2,792,488			2,783,980
Noncontrolling interests		887,285			428,601
Total equity		3,679,773			3,212,581
Total liabilities and equity		¥ 8,358,057			¥ 6,403,316
* Accumulated other comprehensive income (loss) breakdown:
		Yen (millions)
		March 31, 2010			March 31, 2009
Cumulative translation adjustments		¥ (352,649	)		¥ (341,592	)
Unrealized holding gains (losses) of
available-for-sale securities		40,700			(10,563	)
Unrealized gains (losses) of
derivative instruments		1,272			(4,889	)
Pension liability adjustments		(137,555	)		(237,333	)
** See Notes to consolidated financial statements.

Panasonic Corporation
Consolidated Information by Business Segment *
(Year ended March 31)
By Business Segment:
		Yen (billions)						Percentage
[Sales]		2010			2009			2010/2009
Digital AVC Networks		¥ 3,409.5			¥ 3,749.0			91	%
Home Appliances		1,142.3			1,222.9			93	%
PEW and PanaHome		1,632.1			1,766.3			92	%
Components and Devices		1,005.3			1,127.3			89	%
SANYO		404.8			--			--
Other		1,012.2			1,071.7			94	%
Subtotal		8,606.2			8,937.2			96	%
Eliminations		(1,188.2	)		(1,171.7	)		--
Consolidated total		¥ 7,418.0			¥ 7,765.5			96	%
[Segment Profit (Loss)]**
Digital AVC Networks		¥ 87.3			¥ 3.2			2748	%
Home Appliances		66.5			49.0			136	%
PEW and PanaHome		34.7			40.1			87	%
Components and Devices		36.1			7.1			508	%
SANYO		(0.7	)		--			--
Other		19.7			23.9			82	%
Subtotal		243.6			123.3			198	%
Corporate and eliminations		(53.1	)		(50.4	)		--
Consolidated total		¥ 190.5			¥ 72.9			261	%
By Domestic and Overseas Company Location:
		Yen (billions)						Percentage
[Sales]		2010			2009			2010/2009
Japan		¥ 5,866.5			¥ 6,053.6			97	%
North and South America		887.5			964.7			92	%
Europe		758.2			969.5			78	%
Asia, China and others		2,519.3			2,457.6			103	%
Subtotal		10,031.5			10,445.4			96	%
Eliminations		(2,613.5	)		(2,679.9	)		--
Consolidated total		¥ 7,418.0			¥ 7,765.5			96	%
[Segment Profit (Loss)]**
Japan		¥ 146.8			¥ 72.7			202	%
North and South America		9.1			(2.8	)		--
Europe		(23.2	)		(30.4	)		--
Asia, China and others		113.5			82.6			137	%
Subtotal		246.2			122.1			202	%
Corporate and eliminations		(55.7	)		(49.2	)		--
Consolidated total		¥ 190.5			¥ 72.9			261	%
* ** See Notes to consolidated financial statements.

Panasonic Corporation
Consolidated Statement of Equity *
(Years ended March 31, 2010 and 2009)
Yen (millions)
		Common stock		Capital surplus			Legal reserve		Retained earnings			Accumulated other comprehensive income (loss)			Treasury stock			Panasonic Corporation shareholders' equity			Noncontrolling interests			Total equity
(Year ended March 31, 2010)
Balances at beginning of period		¥ 258,740		¥ 1,217,764			¥ 92,726		¥ 2,479,416			¥ (594,377)			¥ (670,289)			¥ 2,783,980			¥ 428,601			¥ 3,212,581
Gain (loss) from sale of treasury stock				(8	)													(8	)					(8	)
Transfer from retained earnings							581		(581	)								--						--
Cash dividends									(25,883	)								(25,883	)		(14,619	)		(40,502	)
Purchase of shares of a newly
consolidated subsidiary																		--			532,360			532,360
Increase (decrease) mainly in capital
transactions				(8,240	)													(8,240	)		(2,402	)		(10,642	)
Disclosure of
comprehensive income (loss)
Net income (loss)									(103,465	)								(103,465	)		(67,202	)		(170,667	)
Translation adjustments												(11,057	)					(11,057	)		1,238			(9,819	)
Unrealized holding gains (losses)
of available-for-sale securities												51,263						51,263			2,378			53,641
Unrealized gains (losses) of
derivative instruments												6,161						6,161			68			6,229
Pension liability adjustments												99,778						99,778			6,863			106,641
Total comprehensive income (loss)																		42,680			(56,655	)		(13,975	)
Repurchase of common stock, net															(41	)		(41	)					(41	)
Balances at end of period		¥ 258,740		¥ 1,209,516			¥ 93,307		¥ 2,349,487			¥ (448,232	)		¥ (670,330	)		¥ 2,792,488			¥ 887,285			¥ 3,679,773
		Common stock		Capital surplus			Legal reserve		Retained earnings			Accumulated other comprehensive income (loss)			Treasury stock			Panasonic Corporation shareholders' equity			Noncontrolling interests			Total equity
(Year ended March 31, 2009)
Balances at beginning of period
prior to adjustment		¥ 258,740		¥ 1,217,865			¥ 90,129		¥ 2,948,065			¥ (173,897	)		¥ (598,573	)		¥ 3,742,329			¥ 514,620			¥ 4,256,949
Effects of changing the pension plan
measurement date									(3,727	)		(73,571	)					(77,298	)		(3	)		(77,301	)
Balances at beginning of period
as adjusted		¥ 258,740		¥ 1,217,865			¥ 90,129		¥ 2,944,338			¥ (247,468	)		¥ (598,573	)		¥ 3,665,031			¥ 514,617			¥ 4,179,648
Gain (loss) from sale of treasury stock				(101	)													(101	)					(101	)
Transfer from retained earnings							2,597		(2,597	)								--						--
Cash dividends									(83,364	)								(83,364	)		(20,803	)		(104,167	)
Increase (decrease) mainly in capital
transactions																		--			(1,422	)		(1,422	)
Disclosure of
comprehensive income (loss)
Net income (loss)									(378,961	)								(378,961	)		(24,882	)		(403,843	)
Translation adjustments												(112,800	)					(112,800	)		(18,043	)		(130,843	)
Unrealized holding gains (losses)
of available-for-sale securities												(56,005	)					(56,005	)		(1,619	)		(57,624	)
Unrealized gains (losses) of
derivative instruments												(9,215	)					(9,215	)		(12	)		(9,227	)
Pension liability adjustments												(168,889	)					(168,889	)		(19,235	)		(188,124	)
Total comprehensive income (loss)																		(725,870	)		(63,791	)		(789,661	)
Repurchase of common stock, net															(71,716	)		(71,716	)					(71,716	)
Balances at end of period		¥ 258,740		¥ 1,217,764			¥ 92,726		¥ 2,479,416			¥ (594,377	)		¥ (670,289	)		¥ 2,783,980			¥ 428,601			¥ 3,212,581
* See Notes to consolidated financial statements.

Panasonic Corporation
Consolidated Statement of Cash Flows *
(Year ended March 31)
		Yen (millions)
Cash flows from operating activities:		2010			2009
Net income (loss)		¥ (170,667	)		¥ (403,843	)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization		298,270			364,806
Net gain on sale of investments		(5,137	)		(13,512	)
(Increase) decrease in trade receivables		(119,966	)		249,123
(Increase) decrease in inventories		100,576			21,011
Increase (decrease) in trade payables		83,719			(199,176	)
Increase (decrease) in retirement
and severance benefits		(8,655	)		(107,196	)
Other		344,193			205,434
Net cash provided by operating activities		522,333			116,647
Cash flows from investing activities:
Proceeds from disposition of investments
and advances		61,302			221,127
Increase in investments and advances		(8,855	)		(34,749	)
Capital expenditures		(375,648	)		(521,580	)
Proceeds from sale of fixed assets		117,857			40,476
(Increase) decrease in time deposits		99,274			(136,248	)
Purchase of shares of a newly consolidated subsidiary		(174,808	)		--
Other		(42,781	)		(38,503	)
Net cash used in investing activities		(323,659	)		(469,477	)
Cash flows from financing activities:
Increase (decrease) in short-term debt		(3,360	)		(34,476	)
Increase (decrease) in long-term debt		(1,608	)		359,258
Dividends paid to Panasonic Corporation
common shareholders		(25,883	)		(83,364	)
Dividends paid to noncontrolling interests		(14,619	)		(20,803	)
(Increase) decrease in treasury stock		(49	)		(71,817	)
Other		(11,454	)		(86	)
Net cash provided by (used in) financing activities		(56,973	)		148,712
Effect of exchange rate changes on cash
and cash equivalents		(5,656	)		(36,831	)
Net increase (decrease) in cash and cash equivalents		136,045			(240,949	)
Cash and cash equivalents at beginning of period		973,867			1,214,816
Cash and cash equivalents at end of period		¥ 1,109,912			¥ 973,867
* See Notes to consolidated financial statements.

Notes to consolidated financial statements:

1. The company's consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP).

2. In order to be consistent with generally accepted financial reporting practices in Japan, operating profit is presented as net sales less cost of sales and selling, general and administrative expenses. The company believes that this is useful to investors in comparing the company's financial results with those of other Japanese companies. Please refer to the accompanying consolidated statement of operations and Note 3 for the U.S. GAAP reconciliation.

3. Under U.S. GAAP, expenses associated with the implementation of early retirement programs at certain domestic and overseas companies are included as part of operating profit in the statement of operations.

4. In June 2009, FASB issued the FASB Accounting Standards Codification (ASC) 105 "Generally Accepted Accounting Principles." Accordingly, consolidated financial statements for the period ending after the effective date of ASC 105 should contain Codification citations in place of any corresponding references to legacy accounting pronouncements. The company adopted ASC 105 from the second quarter of fiscal 2010. The Codification does not change or alter existing U.S. GAAP and, therefore, the adoption of ASC 105 did not have an effect on the company's consolidated financial statements.

5. The company adopted the provisions of ASC 805, "Business Combinations" (formerly SFAS No. 141 (revised 2007), "Business Combinations") and ASC 810, "Consolidation" (formerly SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements—an amendment to ARB No. 51"). ASC 805 and 810 require most identifiable assets, liabilities, noncontrolling interests, and goodwill acquired in a business combination to be recorded at "full fair value" and require noncontrolling interests to be reported as a component of equity, which changes the accounting for transactions with noncontrolling interest holders. Accordingly, "Noncontrolling interests," which was referred to as "Minority interests" and was classified between liabilities and stockholders' equity on the consolidated balance sheet as a separate component until fiscal 2009, are now included in equity. The presentations of the other financial statements were also changed. These presentation requirements have been adopted retrospectively and prior year amounts in the consolidated financial statements have been reclassified to conform to the presentation used for fiscal 2010.

6. Per share data (Years ended March 31)
			2010			2009
	Net income (loss) attributable to
	Panasonic Corporation (millions of yen)		(103,465)			(378,961)
	Average common shares outstanding
	(number of shares)		2,070,623,618			2,079,296,525
	Dilutive effect:
	Stock Options		-			-
	Diluted common shares outstanding		-			2,079,296,525
	Net income (loss) attributable to
	Panasonic Corporation per share:
	Basic		(49.97 yen)			(182.25 yen)
	Diluted		-			(182.25 yen)

Diluted net income (loss), attributable to Panasonic Corporation common shareholders per share, for fiscal 2010, has been omitted because the company did not have potential common shares that were outstanding for the period.

7. Regarding consolidated segment profit (loss), expenses for basic research and administrative expenses at the corporate headquarters level are treated as unallocatable expenses for each business segment, and are included in Corporate and eliminations.

8. On December 21, 2009, the company acquired 50.2% of the voting rights of SANYO through a tender offer to acquire a controlling interest in SANYO. The operating results of SANYO and its subsidiaries after January 2010 are included in the company's consolidated financial statements. Assets acquired and liabilities assumed on acquisition date are as shown below. After deducting 403,780 million yen (the company's investment in SANYO) from 2,449,910 million yen (the total assets acquired), the total assets increased by 2,046,130 million yen.

			Yen (millions)
	Current assets		¥	882,681
	Investments and advances			105,643
	Property, plant and equipment			404,468
	Other assets			1,057,118
	Total assets acquired			2,449,910
	Current liabilities			606,639
	Noncurrent liabilities			907,131
	Total liabilities assumed		¥	1,513,770

9. The company's business segments are classified according to a business domain-based management system, which focuses on global consolidated management by each business domain, in order to ensure consistency of its internal management structure and disclosure. SANYO and its subsidiaries became Panasonic's consolidated subsidiaries in December 2009, and are disclosed as "SANYO" segment.

Principal internal divisional companies or units and subsidiaries operating in respective segments are as follows:

Digital AVC Networks

AVC Networks Company, System Networks Company*,

Panasonic Mobile Communications Co., Ltd., Automotive Systems Company,

Panasonic Shikoku Electronics Co., Ltd.

Home Appliances

Home Appliances Company, Lighting Company,

Panasonic Ecology Systems Co., Ltd.

PEW and PanaHome

Panasonic Electric Works Co., Ltd., PanaHome Corporation

Components and Devices

Semiconductor Company, Panasonic Electronic Devices Co., Ltd.,

Energy Company, Motor Company

SANYO

SANYO Electric Co., Ltd.

Other

Panasonic Factory Solutions Co., Ltd., Panasonic Welding Systems Co., Ltd.

* Panasonic Communications Co., Ltd. and System Solutions Company, which were classified to Digital AVC Networks, were integrated and became System Networks Company in January 2010.

10. Number of consolidated companies: 680 (including parent company)

11. Number of associated companies under the equity method: 232

Basic Accounting Policies:

1. Basis of Presentation of Consolidated Financial Statements

The company's consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles. See Note 2 of Notes to consolidated financial statements.

2. Inventories

Finished goods and work in process are stated at the lower of cost (average) or market. Raw materials are stated at cost, principally on a first-in, first-out or average basis, not in excess of current replacement cost.

3. Marketable Securities

The company accounts for debt and equity securities in accordance with the provision of ASC 320, "Investments-Debt and Equity Securities."

4. Property, Plant and Equipment, and Depreciation

Property, plant and equipment are stated at cost. Depreciation is computed primarily using the straight-line method.

5. Leases

The company accounts for leases in accordance with the provision of ASC 840, "Leases."

6. Income Taxes

Income taxes are accounted for under the asset and liability method. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the fiscal year that includes the enactment date.

7. Retirement and Severance Benefits

The company accounts for retirement and severance benefits in accordance with the provision of ASC715, "Compensation-Retirement Benefits."

8. Derivative Financial Instruments

The company accounts for derivative instruments in accordance with the provision of ASC 815, "Derivative and Hedging."

Please Note: The following are financial statements on a parent company alone basis, which are in
conformity with Japanese generally accepted accounting principles, and should not be confused
with the aforementioned consolidated results.
Panasonic Corporation
(Parent Alone)
Statement of Operations
(Year ended March 31)
		Yen (millions)						Percentage
		2010			2009			2010/2009
Net sales		¥ 3,926,593			¥ 4,249,233			92	%
Cost of sales		(3,064,356	)		(3,453,765	)
Gross profit		862,237			795,468			108	%
Selling, general and
administrative expenses		(809,058	)		(853,191	)
Interest income		8,455			7,113
Dividend income		80,023			191,924
Other income		33,339			53,853
Interest expense		(11,056	)		(6,295	)
Other expenses		(117,223	)		(71,746	)
Recurring profit		46,717			117,126			40	%
Non-recurring profit		27,835			127,228
Non-recurring loss		(153,714	)		(222,819	)
Income (loss) before income taxes		(79,162	)		21,535			--
Provision for income taxes
Current		(10,797	)		(11,165	)
Deferred		(34,979	)		(66,682	)
Net income (loss)		¥ (124,938	)		¥ (56,312	)		--
Net income (loss) per common share:
Basic		(60.34) yen			(27.11) yen
Diluted*		-			-
* Diluted net income (loss) per common share for fiscal 2009 and 2010 have been omitted
because the company incurred net loss.

Panasonic Corporation
(Parent Alone)
Balance Sheet
(March 31, 2010)
With comparative figures for March 31, 2009
		Yen (millions)
Assets		March 31, 2010			March 31, 2009
Current assets:
Cash and deposits		¥ 2,715			¥ 3,670
Trade receivables		456,475			378,400
Inventories		202,115			213,404
Other current assets		1,000,374			1,174,108
Total current assets		1,661,679			1,769,582
Fixed assets:
Tangible fixed assets		374,547			408,211
Intangibles		60,807			49,170
Investments and advances, and other assets		2,468,259			2,215,327
Total fixed assets		2,903,613			2,672,708
Total assets		¥ 4,565,292			¥ 4,442,290
Liabilities and Net Assets
Current liabilities:
Trade payables		¥ 395,495			¥ 321,888
Accrued income taxes		2,776			912
Other current liabilities		1,488,629			1,316,178
Total current liabilities		1,886,900			1,638,978
Long-term debt and employee
retirement and severance benefits		640,098			669,772
Total liabilities		2,526,998			2,308,750
Net assets
Capital		258,740			258,740
Capital surplus		569,973			569,981
Retained earnings		1,844,852			2,022,552
Treasury stock		(671,223	)		(671,182	)
Total net assets		2,002,342			2,180,091
Difference of valuation,
translation and other adjustments		35,952			(46,551	)
Total liabilities and net assets		¥ 4,565,292			¥ 4,442,290

Panasonic Corporation
(Parent Alone)
Statement of Changes in Shareholders' Equity
(Year ended March 31, 2010)
Yen (millions)
		Shareholders' equity
					Capital surplus									Retained earnings
																	Other retained earnings
		Capital			Capital reserve			Other capital surplus			Total			Legal reserve			Reserve for advanced depreciation			Reserve for dividends			Contingent reserve
Balances at
beginning of period		¥ 258,740			¥ 568,212			¥ 1,769			¥ 569,981			¥ 52,749			¥ 18,464			¥ 81,000			¥ 1,918,680
Changes in the period
Reversal of reserve for
dividends																				(81,000	)
Reversal of contingent
reserve																							(300,000	)
Dividends from retained
earnings
Net income (loss)
Repurchase of common
stock
Sales of treasury stock								(8	)		(8	)
Decrease due to business
split-off
Net changes of items other
than shareholders' equity
Total changes in the period		--			--			(8	)		(8	)		--			--			(81,000	)		(300,000	)
Balances at end of period		¥ 258,740			¥ 568,212			¥ 1,761			¥ 569,973			¥ 52,749			¥ 18,464			¥ --			¥ 1,618,680
		Shareholders' equity												Difference of valuation, translation and other adjustments									Total net assets
		Retained earnings												Unrealized holding gains of available- for-sale securities, etc
		Unappropriated retained earnings			Total			Treasury stock			Total						Deferred profit on hedges			Total
Balances at
beginning of period		¥ (48,341	)		¥ 2,022,552			¥ (671,182	)		¥ 2,180,091			¥ (15,913	)		¥ (30,638	)		¥ (46,551	)		¥ 2,133,540
Changes in the period
Reversal of reserve for
dividends		81,000			--						--												--
Reversal of contingent
reserve		300,000			--						--												--
Dividends from retained
earnings		(25,883	)		(25,883	)					(25,883	)											(25,883	)
Net income (loss)		(124,938	)		(124,938	)					(124,938	)											(124,938	)
Repurchase of common
stock								(72	)		(72	)											(72	)
Sales of treasury stock								31			23												23
Decrease due to business
split-off		(26,879	)		(26,879	)					(26,879	)											(26,879	)
Net changes of items other
than shareholders' equity														47,482			35,021			82,503			82,503
Total changes in the period		203,300			(177,700	)		(41	)		(177,749	)		47,482			35,021			82,503			(95,246	)
Balances at end of period		¥ 154,959			¥ 1,844,852			¥ (671,223	)		¥ 2,002,342			¥ 31,569			¥ 4,383			¥ 35,952			¥ 2,038,294

Management Policy

(1) Basic Policy for Corporate Management

Since the company's establishment in 1918, Panasonic has operated its businesses under its basic management philosophy, which sets forth that the mission as a business enterprise is to contribute to progress and development of society and well-being of people through its business activities, thereby offering better quality of life throughout the world. To become a global excellent company contributing to resolve global environmental issues, Panasonic will work to grow sustainably in corporate value to satisfy its shareholders, investors, customers, business partners and all other stakeholders.

(2) Basic Policy for Providing Return to Shareholders

Since its establishment, Panasonic has managed its businesses under the concept that returning profits to shareholders is one of its most important policies. The company has implemented a proactive and comprehensive profit return to shareholders through dividend payments and own share repurchases, upon careful consideration of its consolidated business performance.

From the perspective of return on the capital investment made by shareholders, Panasonic, in principle, distributes profits to shareholders based on its business performance and is aiming for stable and continuous growth in dividends, targeting a dividend payout ratio of between 30% and 40% with respect to consolidated net income. Regarding share buybacks, the company is repurchasing its own shares as it considers appropriate, taking comprehensively into consideration strategic investments and the company's financial condition, with the aim of increasing shareholder value per share and return on capital.

The company recorded net loss for the second year running in fiscal 2010. In order to quickly improve its performance and grow in years ahead, Panasonic is working urgently to strengthen its management structures from its business and financial perspective. In light of the company's circumstances and to emphasize its stable rewards to its shareholders, the company paid an interim dividend of 5 yen per share on November 30, 2009 and plans to pay a year-end dividend of 5 yen per share, making an annual cash dividend of 10 yen per share. Panasonic plans total cash dividends for fiscal 2011 of 10 yen per share. Meanwhile, the company did not repurchase its own shares, except for acquiring fractions of a trading unit and other minor transactions. Although Panasonic expects severe business conditions to continue, the company will strive to improve its performance as soon as possible and distribute earnings to shareholders.

(3) Corporate Management Strategies and Challenges

The world has drastically shifted to a sustainable multipolarized society with serious environmental issues, resource depletion, and the growth of emerging countries. A worldwide recession started in the fall of 2008 accelerated this shift. Although the company continuously anticipates uncertainties in the global economy in fiscal 2011, the company expects a gradual recovery trend and greater demand of emerging markets. Panasonic also expects greater presence of businesses, products, services, which are based on a new sense of values such as 'environmental awareness' and 'conscientious consumption.'

The company has started a new three-year midterm management plan in fiscal 2011. Toward its vision looking to the 100^th Anniversary of its founding, 'No.1 Green Innovation Company in the Electronics Industry,' the company contributes to environment and business growth to build new Panasonic with 'Paradigm shift for growth' and 'Lay a foundation to be a Green Innovation Company' establishing a 'Panasonic Group with strong potential growth.'

To convert paradigm for growth, the company will shift its business: 1) from existing to new fields such as energy, 2) from Japan centric to globally oriented, and 3) from individual product to solutions & systems oriented. To lay its foundation to be a Green Innovation Company, the company targets: 1) to increase profitability based on growth and 2) to contribute to the environment, using indexes respectively.

The company also accelerates global human resources development and strengths cash flow-oriented management. Regarding to cash flow-oriented management, the company develops well-controlled business strategies dividing all businesses into four categories in terms of growth and profitability. The company also enhances its capability of generating cash flow in operating sites through 'Midterm Enhanced Cash Flow Management Project,' strengthening management of large-scaled investments and applying theoretical inventory control throughout all group companies.

Based on its basic management philosophy, Panasonic believes today's mission is to make its all business activities 'environment' centered and take a leadership to offer life innovation with decisive actions. Having added SANYO and its consolidated subsidiaries to the Panasonic group, in the next three years of new midterm management plan, Panasonic will take initiatives to change ourselves to fill Panasonic with innovation and growth potential to carry out our mission. In fiscal 2011, the company starts into the first phase of innovation and targets our profitability positive and furthermore.

Supplemental Consolidated Financial Data for Fiscal 2010 ended March 31, 2010
Note: SANYO and its subsidiaries became Panasonic's consolidated subsidiaries in December 2009. The operating results of
SANYO and its subsidiaries after January 2010 are included in the company's consolidated financial statements.
1. Sales Breakdown
yen (billions)
Fiscal 2010 Results			Total
						10/09			Local currency basis 10/09			Domestic			10/09			Overseas			10/09			Local currency basis 10/09
	Video and Audio Equipment		1,613	.1		95	%		100	%		585	.0		119	%		1,028	.1		85	%		92	%
	Information and Communications Equipment		1,574	.8		88	%		91	%		876	.0		94	%		698	.8		81	%		88	%
Digital AVC Networks			3,187	.9		91	%		95	%		1,461	.0		102	%		1,726	.9		84	%		91	%
Home Appliances			1,088	.1		93	%		96	%		630	.4		96	%		457	.7		90	%		97	%
PEW and PanaHome			1,446	.4		91	%		93	%		1,189	.4		92	%		257	.0		91	%		98	%
Components and Devices			819	.9		90	%		95	%		275	.7		86	%		544	.2		92	%		99	%
SANYO			399	.9		-			-			152	.3		-			247	.6		-			-
Other			475	.8		77	%		78	%		285	.6		75	%		190	.2		80	%		83	%
Total			7,418	.0		96	%		99	%		3,994	.4		98	%		3,423	.6		93	%		100	%
(Domestic vs. overseas)			(100%)									(54%)						(46%)
																								yen (billions)
Fiscal 2011 Forecast			Total
						11/10			Local currency basis 11/10			Domestic			11/10			Overseas			11/10			Local currency basis 11/10
	Video and Audio Equipment		1,650	.0		102	%		104	%		585	.0		100	%		1,065	.0		104	%		107	%
	Information and Communications Equipment		1,555	.0		99	%		100	%		870	.0		99	%		685	.0		98	%		101	%
Digital AVC Networks			3,205	.0		101	%		102	%		1,455	.0		100	%		1,750	.0		101	%		105	%
Home Appliances			1,185	.0		103	%		104	%		655	.0		101	%		530	.0		106	%		108	%
PEW and PanaHome			1,445	.0		100	%		101	%		1,175	.0		99	%		270	.0		105	%		109	%
Components and Devices			780	.0		103	%		104	%		260	.0		101	%		520	.0		103	%		105	%
SANYO			1,710	.0		428	%		428	%		670	.0		440	%		1,040	.0		420	%		420	%
Other			475	.0		100	%		100	%		285	.0		100	%		190	.0		100	%		101	%
Total			8,800	.0		119	%		120	%		4,500	.0		113	%		4,300	.0		126	%		128	%
(Domestic vs. overseas)			(100%)									(51%)						(49%)
Note: The company transferred its motor business to Home Appliances on April 1, 2010. Accordingly, the year-on-year figures of fiscal
2011 forecast for Home Appliances and Components and Devices are based on the reclassified fiscal 2010 results for those
product categories.
Overseas Sales by Region
yen (billions)
			Fiscal 2010 Results									Fiscal 2011 Forecast
						10/09			Local currency basis 10/09						11/10			Local currency basis 11/10
North and South America			917	.9		92	%		99	%		1,140	.0		124	%		127	%
Europe			771	.3		80	%		88	%		910	.0		118	%		124	%
Asia			830	.9		96	%		103	%		1,100	.0		132	%		134	%
China			903	.5		106	%		111	%		1,150	.0		127	%		128	%
Total			3,423	.6		93	%		100	%		4,300	.0		126	%		128	%

2. Sales by Products
yen (billions)
Product Category		Products			Fourth Quarter Results						Fiscal 2010 Results
					Sales			10/09			Sales			10/09
Digital AVC Networks		TVs			198	.7		127	%		1,005	.7		101	%
			Plasma TVs		106	.0		120	%		548	.1		95	%
			LCD TVs		75	.0		145	%		383	.4		113	%
		Digital cameras			39	.1		128	%		203	.8		98	%
		BD / DVD recorders			26	.0		130	%		138	.1		106	%
			BD recorders / players		19	.4		135	%		103	.0		140	%
		VCRs / camcorders			13	.5		109	%		61	.8		82	%
		Audio equipment			15	.2		104	%		75	.8		80	%
		Information equipment			317	.3		124	%		1,066	.9		90	%
		Communications equipment			121	.7		97	%		507	.9		83	%
			Mobile communications equipment		66	.7		84	%		267	.6		81	%
Home Appliances		Air conditioners			57	.9		141	%		229	.4		94	%
		Refrigerators			22	.7		111	%		119	.8		110	%
Components and Devices		General components			80	.7		146	%		316	.2		92	%
		Semiconductors *			82	.7		147	%		329	.4		84	%
		Batteries			57	.7		114	%		240	.8		87	%
Other		FA equipment			31	.1		223	%		94	.4		68	%

* Information for semiconductors is on a production basis. The annual forecast for fiscal 2011 is 341.0 billion yen, up 4% from fiscal 2010.

3. Segment Information
yen (billions)
		Fiscal 2010 Results															Fiscal 2011 Forecast
		Sales			10/09			Segment Profit			% of sales			10/09			Sales			11/10			Segment Profit			% of sales			11/10
Digital AVC Networks		3,409	.5		91	%		87	.3		2	.6%		2748	%		3,450	.0		101	%		125	.0		3	.6%		143	%
Home Appliances		1,142	.3		93	%		66	.5		5	.8%		136	%		1,250	.0		104	%		77	.0		6	.2%		117	%
PEW and PanaHome		1,632	.1		92	%		34	.7		2	.1%		87	%		1,650	.0		101	%		42	.0		2	.5%		121	%
Components and Devices		1,005	.3		89	%		36	.1		3	.6%		508	%		980	.0		105	%		51	.0		5	.2%		140	%
SANYO		404	.8		-			-0	.7		-0	.2%		-			1,750	.0		432	%		0	.0		0	.0%		-
Other		1,012	.2		94	%		19	.7		1	.9%		82	%		1,020	.0		101	%		31	.0		3	.0%		157	%
Total		8,606	.2		96	%		243	.6		2	.8%		198	%		10,100	.0		117	%		326	.0		3	.2%		134	%
Corporate and eliminations		-1,188	.2		-			-53	.1		-			-			-1,300	.0		-			-76	.0		-			-
Consolidated total		7,418	.0		96	%		190	.5		2	.6%		261	%		8,800	.0		119	%		250	.0		2	.8%		131	%
Note: The company transferred its motor business to Home Appliances on April 1, 2010. Accordingly, the year-on-year figures of fiscal 2011 forecast for
Home Appliances and Components and Devices are based on the reclassified fiscal 2010 results for those product categories.

4. Financial data for the primary domain companies
(Business domain company basis)
<Sales, Domain company profit (production division basis), and Capital Investment * >
Fiscal 2010 Results																		yen (billions)
			Sales						Domain company profit									Capital Investment
						10/09						% of sales			10/09						10-09
AVC Networks Company			1,702	.7		90	%		-34	.1		-2	.0%		-			176	.1		-29	.5
Panasonic Mobile Communications Co., Ltd.			307	.4		79	%		10	.9		3	.5%		46	%		2	.8		-1	.2
Panasonic Electronic Devices Co., Ltd.			366	.0		91	%		4	.6		1	.2%		-			19	.4		-17	.9
Factory Automation Business			100	.6		66	%		-6	.7		-6	.7%		-			1	.9		-0	.4
Fiscal 2011 Forecast																		yen (billions)
			Sales						Domain company profit									Capital Investment
						11/10						% of sales			11/10						11-10
AVC Networks Company			1,735	.1		102	%		11	.0		0	.6%		-			162	.5		-13	.6
Panasonic Mobile Communications Co., Ltd.			280	.5		91	%		4	.0		1	.4%		37	%		3	.0		+0	.2
Panasonic Electronic Devices Co., Ltd.			390	.0		107	%		14	.0		3	.6%		304	%		25	.9		+6	.5
Factory Automation Business			123	.5		123	%		7	.4		6	.0%		-			2	.0		+0	.1
* These figures are calculated on an accrual basis.

5. Capital Investment, Depreciation and R&D Expenditures
Capital Investment*										yen (billions)
		Fiscal 2010 Results						Fiscal 2011 Forecast
					10-09						11-10
Digital AVC Networks		200	.0		-43	.1		190	.0		-10	.0
Home Appliances		35	.7		-18	.4		29	.0		-7	.8
PEW and PanaHome		27	.3		-9	.8		37	.0		+9	.7
Components and Devices **		84	.5		-51	.9		86	.0		+2	.6
SANYO		31	.2		+31	.2		126	.5		+95	.3
Other		6	.8		-16	.9		11	.5		+4	.7
Total		385	.5		-108	.9		480	.0		+94	.5
<** semiconductors only>		< 16	.5 >		-44	.4		< 25	.0 >		+8	.5
* These figures are calculated on an accrual basis.
Note: The company transferred its motor business to Home Appliances on April 1, 2010. Accordingly, the year-on-year figures of fiscal
2011 forecast for Home Appliances and Components and Devices are based on the reclassified fiscal 2010 results for those
product categories.
Depreciation(tangible assets)											yen (billions)
		Fiscal 2010 Results						Fiscal 2011 Forecast
					10-09						11-10
		251	.8		-74	.0		330	.0		+78.2
R&D Expenditures											yen (billions)
		Fiscal 2010 Results						Fiscal 2011 Forecast
					10-09						11-10
		476	.9		-41	.0		550	.0		+73.1

6. Foreign Currency Exchange Rates
		Export Rates				Rates Used for Consolidation				Foreign Currency Transaction **
												(billions)
		Fiscal 2010 Results		Fiscal 2011 Forecast*		Fiscal 2010 Results		Fiscal 2011 Forecast*		Fiscal 2010 Results		Fiscal 2011 Forecast
U.S. Dollars		¥93		¥90		¥93		¥90		US$ 2.0		US$ 2.0
Euro		¥129		¥120		¥131		¥120		€ 1.1		€ 1.1
* Business plan rate
** These figures are based on the net foreign exchange exposure of the company.
7. Number of Employees
				(persons)
		End of March 2009		End of March 2010
Domestic		132,144		152,853
Overseas		160,106		231,733
Total		292,250		384,586

Disclaimer Regarding Forward-Looking Statements

This document 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 document 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 document. 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 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, Asia and other 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 acquisition of 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; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout the world and other events that may negatively impact business activities of the Panasonic Group.

The factors listed above are not all-inclusive and further information is contained in Panasonic's latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

<Attachment 1> Reference
Segment information for fiscal 2010
Sales												Yen(billions)
		1st Quarter (Apr. to Jun.)			2nd Quarter (Jul. to Sep.)			3rd Quarter (Oct. to Dec.)			4th Quarter (Jan. to Mar.)			Full year (Apr. to Mar.)
Digital AVC Networks		773.3			830.8			974.1			831.3			3,409.5
Home Appliances		293.9			273.2			289.5			285.7			1,142.3
PEW and PanaHome		357.7			416.0			410.7			447.7			1,632.1
Components and Devices		229.6			261.5			265.7			248.5			1,005.3
SANYO		-			-			-			404.8			404.8
Other		204.7			241.4			231.6			334.5			1,012.2
Subtotal		1,859.2			2,022.9			2,171.6			2,552.5			8,606.2
Eliminations		-263.7			-285.1			-285.0			-354.4			-1,188.2
Total		1,595.5			1,737.8			1,886.6			2,198.1			7,418.0
Segment profit												Yen(billions)
		1st Quarter (Apr. to Jun.)			2nd Quarter (Jul. to Sep.)			3rd Quarter (Oct. to Dec.)			4th Quarter (Jan. to Mar.)			Full year (Apr. to Mar.)
Digital AVC Networks		-13.6			26.3			40.2			34.4			87.3
Home Appliances		20.3			8.7			30.7			6.8			66.5
PEW and PanaHome		-7.8			12.0			17.4			13.1			34.7
Components and Devices		-11.5			12.8			19.9			14.9			36.1
SANYO		-			-			-			-0.7			-0.7
Other		-0.9			3.0			6.2			11.4			19.7
Subtotal		-13.5			62.8			114.4			79.9			243.6
Corporate and eliminations		-6.7			-13.7			-13.4			-19.3			-53.1
Total		-20.2			49.1			101.0			60.6			190.5

<Attachment 2> Reference
Segment information for fiscal 2009
Sales														Yen(billions)
		1st Quarter (Apr. to Jun.)			2nd Quarter (Jul. to Sep.)			3rd Quarter (Oct. to Dec.)			4th Quarter (Jan. to Mar.)			Full year (Apr. to Mar.)
Digital AVC Networks		1,046	.4		1,056	.5		937	.3		708	.8		3,749	.0
Home Appliances		352	.1		333	.4		292	.1		245	.3		1,222	.9
PEW and PanaHome		432	.8		495	.9		432	.7		404	.9		1,766	.3
Components and Devices		334	.5		335	.7		278	.3		178	.8		1,127	.3
Other		289	.4		309	.2		222	.4		250	.7		1,071	.7
Subtotal		2,455	.2		2,530	.7		2,162	.8		1,788	.5		8,937	.2
Eliminations		-303	.2		-339	.0		-282	.9		-246	.6		-1,171	.7
Total		2,152	.0		2,191	.7		1,879	.9		1,541	.9		7,765	.5
Segment profit														Yen(billions)
		1st Quarter (Apr. to Jun.)			2nd Quarter (Jul. to Sep.)			3rd Quarter (Oct. to Dec.)			4th Quarter (Jan. to Mar.)			Full year (Apr. to Mar.)
Digital AVC Networks		55	.0		47	.8		-4	.9		-94	.7		3	.2
Home Appliances		31	.5		15	.4		18	.2		-16	.1		49	.0
PEW and PanaHome		10	.5		25	.3		10	.3		-6	.0		40	.1
Components and Devices		19	.5		29	.5		5	.0		-46	.9		7	.1
Other		13	.9		14	.9		0	.1		-5	.0		23	.9
Subtotal		130	.4		132	.9		28	.7		-168	.7		123	.3
Corporate and eliminations		-20	.8		-14	.4		-2	.3		-12	.9		-50	.4
Total		109	.6		118	.5		26	.4		-181	.6		72	.9

<Attachment 3> Reference
Primary domain companies' information for fiscal 2010
Sales														Yen(billions)
		1st Quarter (Apr. to Jun.)			2nd Quarter (Jul. to Sep.)			3rd Quarter (Oct. to Dec.)			4th Quarter (Jan. to Mar.)			Full year (Apr. to Mar.)
AVC Networks Company		366.8			435.5			526.2			374.2			1,702.7
Panasonic Mobile Communications Co., Ltd.		102.0			63.9			63.7			77.8			307.4
Panasonic Electronic Devices Co., Ltd.		84.3			95.6			97.3			88.8			366.0
Factory Automation Business		15.9			24.3			26.5			33.9			100.6
Domain company profit														Yen(billions)
		1st Quarter (Apr. to Jun.)			2nd Quarter (Jul. to Sep.)			3rd Quarter (Oct. to Dec.)			4th Quarter (Jan. to Mar.)			Full year (Apr. to Mar.)
AVC Networks Company		-34.6			1.7			0.1			-1.3			-34.1
Panasonic Mobile Communications Co., Ltd.		7.8			1.9			0.4			0.8			10.9
Panasonic Electronic Devices Co., Ltd.		-3.8			2.9			4.6			0.9			4.6
Factory Automation Business		-7.6			-1.9			0.1			2.7			-6.7
Primary domain companies' information for fiscal 2009
Sales														Yen(billions)
		1st Quarter (Apr. to Jun.)			2nd Quarter (Jul. to Sep.)			3rd Quarter (Oct. to Dec.)			4th Quarter (Jan. to Mar.)			Full year (Apr. to Mar.)
AVC Networks Company		529.9			553.1			519.4			296.1			1,898.5
Panasonic Mobile Communications Co., Ltd.		118.8			90.4			85.7			94.8			389.7
Panasonic Electronic Devices Co., Ltd.		124.9			120.5			92.7			62.5			400.6
Factory Automation Business		60.8			51.1			25.6			15.5			153.0
Domain company profit														Yen(billions)
		1st Quarter (Apr. to Jun.)			2nd Quarter (Jul. to Sep.)			3rd Quarter (Oct. to Dec.)			4th Quarter (Jan. to Mar.)			Full year (Apr. to Mar.)
AVC Networks Company		14.4			21.5			-23.4			-62.6			-50.1
Panasonic Mobile Communications Co., Ltd.		14.9			6.4			6.7			-4.3			23.7
Panasonic Electronic Devices Co., Ltd.		9.0			8.1			-2.0			-17.6			-2.5
Factory Automation Business		9.4			5.8			-4.7			-8.9			1.6