Panasonic announces transition to a holding company system and change of corporate name

OSAKA, JAPAN: Panasonic Corporation announced that the Board of Directors of Panasonic has resolved to transition to a holding company system through a company split and to change its corporate name to Panasonic Holdings Corporation.

These changes are planned to take place in April 2022 under the following conditions: the company split agreement for the transition to a holding company system and the amendments of the articles of incorporation for the corporate name change to be approved at the Panasonic’s ordinary general meeting of shareholders to be held in June 2021 and, as necessary, to obtain approvals from relevant government agencies.

Based on its management philosophy of “Contributing to the progress and development of society and the well-being of people worldwide through its business activities”, the Panasonic Group, as a comprehensive electronics manufacturer, is developing a wide range of businesses including the provision of a broad array of products and solutions for customers in the consumer electronics, housing, automotive and B2B businesses.

Based on its Mid-term Strategy formulated in May 2019, Panasonic has classified “Spatial Solutions” “Gemba (operational frontlines) Process” and “Industrial Solutions” businesses as Core growth businesses and has focused its resources to realize profit growth. At the same time, the Company is steadily implementing measures to strengthen its management structure, such as reducing fixed costs and dealing with businesses having loss-making structures, with the aim of overcoming low-profit structure.

On the other hand, the business environment surrounding the Panasonic Group is undergoing increasingly severe changes year by year, including politics and financial circumstances in each country, the widespread of protectionism, and the downturn of market conditions due to the impact of the COVID-19.

Under such ongoing uncertainties, the Company today resolved to transition to a holding company system in order to further enhance group management from a medium- to long-term perspective and to ensure growth.

With the transition to a holding company system, the Panasonic Group will be divided into operating companies. Each operating company will thoroughly implement autonomous management based on clearly defined responsibility and authority. As a result, each operating company will work to significantly enhance its business competitiveness through swift decision-making in response to changes in the external environment and flexibly develop systems in accordance with business characteristics.

As a holding company, Panasonic will continue to support the business growth of each operating company and define growth areas from the perspective of optimizing the group as a whole, thereby striving to enhance the corporate value of the entire group.

Panasonic currently has a group management system based on a Company System, which is composed of internal Divisional Companies.

 Aiming to strengthen the competitiveness of its business from a medium- to long-term perspective, the Company will implement a company split with Panasonic as a splitting company, and transition to the holding company system with Panasonic as the parent company. Upon transition to the holding company system, the Company will change its corporate name to further clarify the role of Panasonic as a holding company, supporting businesses and accelerating growth for the entire group.

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