Panasonic’s Sales & Profits Mostly Come From Automotive & Industrial Systems

MAY 26 2015 BY MARK KANE 9

Panasonic - Automotive & Industrial Systems (AIS)

Panasonic – Automotive & Industrial Systems (AIS)

In FY2015 ended on March 31, Panasonic noted 7,715.0 billion yen ($64.3 billion) in sales out of which 2,782.5 ($23.2 billion) came from Automotive & Industrial Systems (AIS).

Part of AIS is lithium-ion batteries, and again part of them are going to electric cars (mostly Tesla).

Sadly, we don’t know details for AIS, although this is now the largest source of revenues for Panasonic and when you look at the upper right graph, Panasonic returned to profitability at the same time at which began volume shipments of batteries to Tesla began.

Operating profits were 381.9 billion yen ($3.19 billion), while net income 179.5 billion yen ($1.5 billion). Not much at such high revenues (just over 2%) and probably not enough to jump into Tesla Gigafactory with all spare capital.

This year (from April 1), Panasonic expects higher profits, especially from AIS – from current 36% to maybe more than 40%.

In FY2015 Tesla delivered less than 40,000 Model S (plus batteries for other projects), which at 80 kWh on average would translate to around 3.2 GWh. Again at $200/kWh it is around $640 million – not that much for Panasonic and for sure this was not the true reason of their profitability.

At 55,000 cars (80 kWh on average) in 2015 and assumption of about $200/kWh, revenues form batteries to Tesla would stand at $880 million.

Categories: General, Tesla


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9 Comments on "Panasonic’s Sales & Profits Mostly Come From Automotive & Industrial Systems"

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Interesting how Panasonic has gone from a B-grade radio maker to the biggest maker of automotive batteries. Nice evolution to survive.

I would hardly call them a B-grade radio maker! Panasonic builds an astonishingly large variety of consumer and industrial products for their home market. We generally only see a part of the consumer products in North America.

B-Grade? Panasonic/Technics/Quasar have been at the forefront of consumer electronics since the 70s. Their camcorders were unmatched, and their VCRs were regarded as the highest quality made during the era. Technics is the go to equipment for DJ/mixing because of their durability and reliability.

Of all the brands I have bought in my years of stereo/HT systems, my Panasonics have outlasted all other brands, even Sony, Mitsubishi, JVC and especially way overrated Samsung (Samsungs fall apart very quickly) who seems to dominate on sleight of hand advertising and Best Buy shelf space alone.

I was sorry to hear Panasonic scrapping their television making last year.

Nice to see Panasonic turn it around so they aren’t totally hemorrhaging money like they were in 2012 and 2013. Things were really grim.

Not only that, but assuming the battery prices are denominated in USD, the strong dollar (and the relatively weaker yen) means that for every Tesla dollar they get, they’ end up with more yen in their bottom line, despite their costs remaining roughly the same.

The cells are denominated in yen, not USD. However, commodity prices have dropped also.

Since Japan accounts for 48% of business and the Americas only 16% according to these charts, I don’t think the “Tesla effect” is the main player here. Although surely it’s providing some amount of boost.

Right. In the story they calculate significantly less than $1B sales to Tesla with $64B total group sales. The “Tesla Effect” is not that big. Yet.

GiFi profits… Panasonic should act more motivated.

GiFa, sorry.